Title
Luzon Brokerage Co., Inc. vs. Public Service Commission
Case
G.R. No. 37661
Decision Date
Nov 16, 1932
A customs brokerage firm challenged the Public Service Commission's jurisdiction, arguing its private truck operations for clients did not constitute a public service. The Supreme Court ruled in favor, holding the firm was not a common carrier or public utility under the law.

Case Summary (G.R. No. 37661)

Petition for Writ of Prohibition

The petitioner filed a writ of prohibition against the respondents seeking to stop the enforcement of the Commission’s requirement that they file an application for a certificate of public convenience and necessity. The petitioner asserts that it is not a public service or a public utility and thus is not bound by the regulations governing common carriers.

Background of Previous Rulings

In a prior case, G.R. No. 36752, the Supreme Court found the suit premature as the Public Service Commission had not yet officially determined the petitioner’s status as a public utility. Following this, the Commission formally ordered the petitioner to apply for the necessary certificate. The petitioner later responded, reiterating its position that it is not a public service or utility.

Commission's Resolution

After reviewing the petitioner’s response, the Public Service Commission ruled that the operation of the petitioner's auto-trucks, registered under the TH license, was indeed subject to their jurisdiction, as the trucks were involved in the transportation of goods for compensation. This led to an order requiring the petitioner to file an application within fifteen days, failing which its license plates would be confiscated.

Assertion of Facts

On July 26, 1932, the parties submitted an agreed statement of facts, affirming that the petitioner conducted its business as a customs broker for twenty years, utilizing trucks solely for transporting goods of its identified customers. The involvement of these trucks for hire or compensation prompted the Commission's requirement for regulation as a public utility.

Historical Context of Regulations

Historically, the governing laws on public utilities did not previously encompass the truck operations of the petitioner. The latest amendments to the Public Service Act (Act No. 3316) changed the definition of "public service," adding confusion about whether or not the petitioner’s operations fell under this umbrella.

Jurisdictional Contentions

The court examined whether the amendments intended to extend jurisdiction over private carriers not engaged in public use. The respondents argued that operations for hire or compensation qualified as public service, permitting the Commission's oversight. However, the court indicated that while the definition changed, the requisite element of public use remained significant.

Judicial Findings

Ultimately, the court found that the legislative intent did not appear to encompass private businesses like those of the petitioner within the scope of public services. The court underscored that even though the petitioner’s operations were for hire, the lack of a public interest component rendered them outside the jurisdiction of the Public Service Commission.

Decision Outcome

The ruling granted the writ of prohibition, affirming that the Luzon Brokerage Co., Inc. w

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