Top Banner

of 18

ZZZ Transportation

Apr 07, 2018

Download

Documents

May Bongalon
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
  • 8/6/2019 ZZZ Transportation

    1/18

    maybbongalon1

    TRANSPORTATION LAWS

    COMMON CARRIERS (ARTICLES 1732-1766)

    - are PERSONS, CORPORATION, FIRMS, or ASSOCIATIONS engaged inCARRYING or TRANSPORTING PASSENGERS or GOODS or BOTH, by

    LAND, WATER, or AIR for COMPENSATION OF OFFERING THEIR

    SERVICES TO THE PUBLIC.

    Extraordinary diligence is required to common carriers in transportinggoods and passengers

    Reasons:

    1. nature ofthe business2. public policy

    Registered owner primarily and solidarily with driver under the KABIT

    SYSTEM. Kabit system is contrary to public policy; therefore, void and

    inexistent.

    CIRCUMSTANCES UNDER WHICH COMMON CARRIERES CANNOT BE HELD

    LIABLE FOR THE LOSS/DESTRUCTION OF GOODS:

    1. flood, storm, earthquake, or othernatural calamities2. act of public enemy in war, either international or localact or omission

    oftheshipper or owner ofthegoods

    3. character ofthegoods ordefects ofthe packing4. order of competentauthority

    Extraordinary diligence lasts from the time the cargoes are loaded in the

    vessel until they aredischargedanddeliveredto the consignee.

    Air carriers can terminate services of pilots for serious misconduct and

    drunkenness because of itsextraordinary diligence.

    INSTANCES WHICH ARE NOT CASO FORTUITO:

    1. hijacking2. acts ofstrangers likethieves orrobbersacted withgrave or violence3. accidentsdueto defects of carrier4. wheretie blow-out

    Fire isnotanatural disaster

    Notice ofarrival ofgoodsamountsto constructivedelivery

    Shipper boundto observeall diligence in obtainingdelivery ofgoods

    Common Carriers may be exempted from responsibility PROVIDED that

    natural disaster isthe proximateand only cause ofthe loss.

    STIPULATIONS LIMITING LIABILITY IS VALID PROVIDED THAT:

    1. thestipulation be in writingsigned by both parties2. the stipulation be supported by a valuable consideration other than

    theservicerendered by common carrier

    3. thestipulation bereasonable, justandnot contrary to public policy

    SOME VALID STIPULATIONS LIMITING CARRIER'S LIABILITY:

    1. accountasstrikes orriot2. value ofthegoodsappearing in bill of lading UNLESS shipperdeclaresa

    greater value

    3. contract fixingthesum that may berecoveredVOID STIPULATIONS LIMITING CARRIER'S LIABILITY:1. thegoodsaretransportedattherisk oftheshipper2. thattheshipper isnot liable forany loss ordestruction ofthegoods3. thatthe common carrierneednot observedany diligenceand lessthan

    that ofgood father ofa family

    4. that the common carrier shall not be responsible for any acts of itsemployee

    The law ofthe country to whichthegoodsareto betransportedshall govern

    the liability of common carrier fortheir loss, destruction, ordeterioration.

    Theact ofthethief orrobbers who enteredthe common carrier's vehicle is

    notdeemed force majeure UNLESS it isdone withtheuse ofarms orthrough

    irresistible force.

    A common carrier is boundto carry the passengerssafely as farashuman

    careand foresight can provideusingtheutmostdiligence ofa very cautious

    person witharegard of circumstances.

    In case ofdeath or injuriesto passengers, common carriersare presumedto

    beat fault UNLESS provedthatthey observeextra ordinary diligence.

    LAST CLEAR CHANCE

    - this principleapplies only inasuit between ownersanddrivers oftwocolliding vehicles. This isnotapplicableto Contract of Carriage.

    Carrier not ordinarily liable for injuries to passengers due to fires, and

    explosions caused by articles brought into conveyance by other passengers.

    Ticket is a complete written contract by and between the shipper and

    passenger for it contains:

    1. consent ofthe contracting parties2 cause or consideration which isthe fare paid by the passengers

    3. object which is the transportation of the passenger from the place of

    departureto the place ofdestination.

    Reduction of fare does not justify any limitation of the common carrier's

    liability.

    Passenger boundnotwithstandinghis failure to sign plane ticket containing

    stipulation limiting liability knownas contract ofadhesion.

    The extraordinary diligence required for carriage of passengers cannot be

    dispensed with:

    1. by stipulation2. by posting ofnotices3. by statement oftickets4. otherwise however as an exception, parties may stipulate limiting

    carrier's liability wherethe passenger is carriedgratuitously

    Common Carrier is liable for damages for defects of its equipment.

    Common Carrier is liable forthe misconduct of itsemployeesdone intheir

    own interest.

    Reason:theservant is clothed withthedelegatedauthority and charged with

    duty by the carrierto executehisundertakingsto carry the passengersafely.

    Carrierexempt from acts ofemployeesnotdone in line ofduty.

    The passenger must observe the diligence of agood father of a family or

    ordinary diligenceto avoid injury to himself.

    EFFECTS OF NEGLIGENCE- wherethe proximate cause ofthedeath/ injury to

    the passenger is his own negligence, common carrier is exempted from

    liability.

    EFFECT OF PASSENGER'S CONTRIBUTORY NEGLIGENCE- passenger's

    contributory negligence does not justify carrier's exemption from liability.

    However, thedamages will beequitably reduced.

    A common carrier is responsible for injuries suffered by a passenger onaccount of the lawful acts/negligence of other passengers or of strangers

    provided that the employees could have prevented the act or omission

    throughtheexercise ofagood father ofa family.

    Degree ofdiligencerequired of carriersemployees- merely that ofthegood

    father ofa family or ordinary diligence.

    Liability ofair carrierunder Warsaw Convention of October 12,1929, article

    17, the carriershall be liable fordamagessustained intheevent ofdeath or

    injury ofa passenger ifaccidenttook place on board theaircraft or in the

    course ofembarking ordisembarking.

  • 8/6/2019 ZZZ Transportation

    2/18

  • 8/6/2019 ZZZ Transportation

    3/18

  • 8/6/2019 ZZZ Transportation

    4/18

  • 8/6/2019 ZZZ Transportation

    5/18

    maybbongalon5

    QUALIFICATIONS:

    1. Filipino citizen2. Legal capacity to contract3. Musthave passedtherequired physical, mental examinationrequired

    for licensinghim assuch

    INHERENT POWERS OF THE CAPTAIN:

    1. appoint crew intheabsence ofship agent2. commandanddirect crew3. impose correctional punishment on those who while on board vessel

    fail to comply withhis orders orare wanting indiscipline

    4. make contracts forthe charter of vessel intheabsence ofship agent5. supply, equip, and provisionthe vessel6. orderrepair of vessel to enable itto continue its voyage

    SOURCES OF FUNDS TO COMPLY WITH THE INHERENT POWERS OF THE

    CAPTAIN:

    1. from the consignee ofthe vessel2. from the consignee ofthe cargo3. by drawing ontheship agent4. by a loan on bottomry5. by sale of part ofthe cargoDUTIES OF THE CAPTAIN:1. bring on boardthe proper certificateanddocumentanda copy ofthe

    Code of Commerce

    2. keep a logbook, accounting bookand freight book3. examine beforethe voyage4. stay on boardduringthe loadingandunloading ofthe cargo5. be ondeck while leaving orenteringthe port6. seeks protest, arrival understressand in case ofshipwreck7. follow instruction ofandrenderaccountingto theship agent8. savethe vessel lost in case of wreck9. hold in custody properties left by deceased by passengers and crew

    members

    10. comply with the requirements of customs, health, etc. at the port ofarrival

    LIABILITIES OF THE SHIPAGENT/SHIPOWNER FOR ACTS DONE BY THE

    CAPTAIN TOWARDS PASSENGERS AND CARGOES MAKING THEM

    SOLIDARILY LIABLE TO THE LATTER:

    1. damagesto vessel andto cargo dueto lack ofskill andnegligence2. theftandrobbery ofthe crew3. lossesand fines in violation of laws4. damagesdueto mutinies5. damagesdueto misuse of power6. deviations7. arrival understress8. damagesdueto non-observance of marineregulations

    NO LIABILTY FOR THE FOLLOWING:

    1. damages causedto the vessel by force majeure

    2. obligations contracted fortherepair, equipmentand provisioning ofthe

    vessel UNLESS hehasexpressly boundhimself personally orhassigneda bill

    ofexchange or promissory note inhisname

    CARGO- which includes all goods, wares and merchandise aboard a ship

    whichdo not from part ofthe ship'sstores.

    REQUIREMENTS FOR DEFENSE OF PUBLIC ENEMY:

    1. act of public enemy in war wasthe proximateand only cause ofthe loss

    2. common carrierexerciseduediligenceto prevent, minimize loss before,

    during, andafter occurrence oftheact ofthe public enemy in war

    FORMALITIES REQUIRED WHERE VESSEL HAS GONE THROUGH HURRICANE

    1. Captain must makea protest before competentauthority at the firstporthetouches

    2. Sucha protest must be made within 24 hours followinghisarrival3. captain must ratify it within some period when he arrives at his

    destination

    4. he must immediately proceed withthe proof ofthe facts

    FORMALITIES REQUIRED WHERE VESSEL SHIPWRECKED:

    1. captain must makea protest beforethenearest competentauthority2. protest be made within 24 hours followinghisarrival3. makeswornstatement ofthe facts4. authority/consul abroadshall verify said facts5. suchauthority shall take othersteps in carryingatthe facts6. suchauthority shall also makestatements of what may betheresult of

    the proceeding inthe logbookand inthat ofthesailing mate

    7. heshall deliverthe original recordsto the captain8. captain mustratify the protest

    C. OFFICERS AND CREW1. Sailing mate/First mate- second chief ofthe vessel who takesthe place ofthe captain in case of

    absence, sickness, ordeathandshall assumeall ofhisduties, powers,

    andresponsibilities

    DUTIES:

    1. provide himself with maps, and charts withastronomical tablesnecessary forthedischarge ofhisduties

    2. keep the Binnacle book3. Changethe course ofthe voyage on consultation with captainand

    the officers of the boat, followingthedecision of the captain in

    case ofdisagreements.

    4. Responsible for all the damages caused to the vessel or to thecargo by reason ofhisnegligence

    2. Second mate- takes command ofthe vessel in case ofthe inability ordisqualification

    ofthe captainandthesailing mate, assuming insuch casetheir powers

    andresponsibilitiesandduties

    DUTIES:

    1. preservethehull andrigging ofthe vessel2. arrange well the cargo3. disciplinethe crew4. assign workto crew members5. Inventory theriggingandequipment of the vessel, if laidup.

    3. Engineers- Officers ofthe vessel buthaveno authority EXCEPT in mattersto motor

    apparatus. When 2 or morearehired, one ofthem should bethe Chief

    Engineer

    DUTIES:

    1. in charge of motorapparatus, spare parts, and other instrumentspertainingto theengines

    2. keep theenginesand boilers ingood condition3. not to change or repair the engine without authority of the

    captain

    4. inform the captain ofany damageto the motorapparatus5. keep an Engine book6. superviseall personnel maintainingtheengine

    4. Members ofthe Crew- hired by theship agent. Wherehe is presentand inhisabsence, the

    captainhiresthem preferring Filipinos, and intheirabsence, he ,ay take

    in foreigners butnotexceeding 1/5 ofthe crew.

    CLASSES OF SEAMAN'S CONTRACT:

    1. by the voyage2. by the month3. by share of profits or freightage

    JUST CAUSES FOR THE DISCHARGE OF SEAMAN WHILE CONTRACT

    SUBSISTS:

    1. perpetration ofa crime2. repeated insubordination, want ofdiscipline3. repeated incapacity andnegligence4. habitual drunkenness5. physical incapacity6. desertion

    CAUSES OF REVOCATION OF VOYAGE:

    1. war

  • 8/6/2019 ZZZ Transportation

    6/18

    maybbongalon6

    2. blockade3. prohibitionto receive cargo atdestination4. embargo5. inability ofthe vessel to navigate

    RULES IN CASE OF DEATH OF A SEAMAN:

    - Theseaman'sheirsareentitledto the paymentas follows:1. ifdeath isnatural:

    a. compensationup to time ofdeath ifengaged on voyageb. if by voyage-half ofamount ifdeath occurs on voyage out;and full if on voyage inc. if by shares-none if beforedeparture; full ifafterdeparture

    2. ifdeath isdueto defense of vessel- full payment3. if captured indefense of vessel- full payment4. if captureddueto carelessness- wagesup to thedate ofthe capture

    NO LIABILY UNDER THE FOLLOWING CIRCUMSTANCES:

    1. If before beginning voyage, captainattemptsto change it oranaval warwiththe powerto which wasdestined occurs

    2. Ifadisease breaks outand be officially declaredanepidemic inthe portofdestination

    3. Ifthe vessel change owner or captain

    COMPLEMENT OF THE VESSEL

    - All persons on board, from the captainto the cabin boy, necessary forthe management, maneuvers, andservice, thus includingthe crew, the

    sailing mates, engineers, stalkers and other employees on board not

    havingspecific designations

    - Itdoesnot include the passengers or the person whom the vessel istransported

    FORMALITIES REQUIRED FOR SEAMAN'S AGREEMENT:

    1. reducedto writing in Accounting Book2. signed by parties3. visaed by marineauthority ifexecuted in Philippineterritory/consul or

    consularagents ifexecutedabroad

    4. read to the seaman concerned and such fact must be stated in theagreement

    Interdiction of Commerce

    - a governmental prohibition of commercial intercourse intended tobringaboutanentire cessation forthetime being ofall trade

    Embargo

    - a proclamation or order of the State usually issued in time of war/threatened hostilities prohibiting the departure ships/ goods from

    some orall the ports ofsuch Stateuntil further order

    Blockade

    - a sort of circumvallation of place by all foreign connections andcorrespondence isas farashuman power canaffect itto be cut-off

    D. SUPERCARGOES- person who discharge administrative duties assigned to him by ship

    agent or shippers, keeping an account and record of transaction as

    required intheaccounting book ofthe captain

    CHARTER PARTY

    -

    contract by virtue of which the owner or agent binds himself totransport merchandise or persons ofa fixed price

    CLASSES OF CHARTER PARTY

    1. Asto extent of vessel hireda. total- whole ofthe vessel is charteredb. partial- only part ofthe vessel is chartered

    2. Asto timea. until a fixedday/ foradeterminednumber ofdaysand monthsb. fora voyage(outgoing/return/roundtrip)

    3. Asto freightage

    a. fora fixedamount forthe whole cargob. fora fixedamount pertonc. for anamount per month

    FORMAILITIES REQUIRED FOR A CHARTER PARTY:

    1. in writing2. drawn induplicate3. signed by the parties4. containstipulationy notall requisitesareessential forthe validity of charter partyPrimage

    - belongsto owner/ freighters;- increase ofthe freightrate- consideredgratuity to master if isstipulated

    Demurrage

    - sum which is fixed by the contract of carriage, or which isallowed, asremuneration to the owner of a ship for the detention of his vessel

    beyond the number of days allowed by the charter party for

    loading/unloading/sailing.

    "Lay days"- daysallowedto charter parties for loadingandunlading"Extra Lay Days"

    - days which followedafter lay dayshaveelapsed

    GOODS TRANSFERRED MAY BE:

    1. sold by captainto necessary repairs2. jettisoned forthe commonsafety3. loss by reason ofshipwreck/stranding4. seized by pirates/enemies5. sufferdeterioration/diminutions6. increase by natural causeand weight orsize

    RIGHTS AND OBLIGATIONS OF CHARTER PARTY:

    A. Oftheship owner orship agent1. Ifthe vessel chartered wholly notto accept cargo from others2. To observerepresented capacity3. To unload cargo clandestinely placed4. To substituteanother vessel if load is lessthan 3/5 of capacity5. To leave the port if the charterdoesnot bringthe cargo within

    the lay daysandextra lay daysallowed.

    6. To place ina vessel inagood conditionto navigate7. To bring cargo to nearestneutral port in case of war or blockade

    B. Ofthe charterer1. to pay theagreed charter price2. to pay freightage orunboarded cargoes3. to pay lossesto others for loadinguncontracted cargo and illicit

    cargo

    4. to wait ifthe vessel needsrepair5. to pay expenses fordeviation

    RESCISSION OF CHARTER PARTY

    A. At charterer'srequest1. by abandoningthe charterand payinghalf ofthe freightage2. error intonnage or flag3. failureto placethe vessel atthe charterer'sdisposal4. return ofthe vessel dueto pirates, enemies or bad weather5. arrival atthe port forrepairs

    B. Atship ownersrequest1. If the extra lay days terminate without cargo being placed

    alongsidethe vessel

    2. Sale by the owner ofthe vessel before loading

    C. Fortuitous causes1. war2. blockade3. prohibitionto receive cargo

  • 8/6/2019 ZZZ Transportation

    7/18

    maybbongalon7

    4. embargo5. inability ofthe vessel to navigate

    Loan on Bottomry

    - loan made by ship owner orship agentguaranteed by vessel itselfandrepayableuponarrival of vessel atdestination

    Loan on Respondentia

    - loan , taken onsecurity ofthe cargo laden onthe vessel, andrepayableuponsafearrival of cargo atsafedesignation

    COMMON ELEMENTS OF LOANS ON BOTTOMRY AND RESPONDENTIA

    1. exposure ofsecurity or marine peril2. obligation ofthedebtor conditioned only uponsafearrival of security

    atthe point ofdestination

    EXCEPTIONS TO THE HYPOTHECARY NATURE OF BOTTOMRY AND

    RESPONDENTIS:

    1. lossdueto inherentdefect2. lossdueto the barratry onthe part ofthe captain3. lossdueto the fault or malice ofthe borrower4. thatthe vessel isengaged in contraband5. thatthe cargo loaded onthe vessel bedifferent from thatagreedupon

    ACCIDENTS IN MARITIME COMMERCE:

    1. AVERAGES2. ARRIVAL UNDER STRESS3. COLLISION4. SHIPWRECK

    I. Averages- anextraordinary oraccidental expense incurred during the voyage in

    order to preserve the cargo, vessel or both and all damages or

    deterioration suffered by the vessel from departure to the port of

    destinationand to the cargo from the port of loading to the port ofconsignment

    CLASSES:

    1. Particular/Simple- damage/expenses causedto the vessel or cargo thatdidnot inuredto

    the common benefitand borne by respective owner

    - the owner of thegoods whichgive rise to expense or sufferdamageshall bearthisaverage

    2. Gross/ General- damage/expensesdeliberately caused in orderto save the vessel, i ts

    cargo or both from real orknownrisk

    -REQUISITES:

    a. commondangerb. deliberatesacrificec. successd. proper formalitiesand legal steps

    ORDER OF GOODS TO BE CAST OVERBOARD IN CASE OF JETTISON:

    1. those whichare onthedeck, preferringtheheaviest one withthe leastutility of value

    2. those which are below the upper deck beginning with the one withgreatest weightandsmallest value

    II.

    Arrival Under stress- arrival of a vessel at a port of destination on account of lack of

    provision, well-founded fear of seizure, pirates, or accidents in sea

    disablingnavigation

    - whenunlawful:1. lack of provisionsdue to negligence to carry according to usage

    and customs

    2. risk ofenemiesnot well-known or manifest3. defectdueto improperrepair4. malice, negligence, lack of foresight, lack ofskill

    III. COLLISION- impact oftwo vessels both of whichare moving

    ALLISION

    - impact betweena moving vessel andstationary one

    ZONES OF TIME IN COLLISION OF VESSELS:

    1. First zone-all timeup to the moment whenrisk of collision begins2. Second Zone-time between moment whenrisk of collision beginsand

    moment it becomesa practical certainty

    3. Third Zone-time when collision is certainandtime of impact

    CASES COVERED BY COLLISION AND ALLISION:

    1. one vessel at fault-such vessel is liable fordamage causedto innocentvessel as well asdamagessuffered by owners of cargo of both vessels

    2. both vessels at fault- each vessel must bear its own loss but theshippers of both vessel may go against the ship owner who will be

    solidarily liable

    3. vessel at faultnotknown-sameasrule 24. third vessel at fault-samerule 15. fortuitousevent-no liability, each bear its own loss

    IV. SHIPWRECK- loss ofthe vessel atseaasa consequence of i tsgrounding orrunningagainstan object insea or onthe coast- ifthe wreck wasdueto malice, negligence or lack ofskill ofthe captain,

    the owner ofthe vessel may demand indemnity from said captain.

    COMMON CARRIERS

    ( ARTICLES 1732-1766)

    Common Carriers

    - are PERSONS, CORPORATION, FIRMS, or ASSOCIATIONS engaged inCARRYING or TRANSPORTING PASSENGERS or GOODS or BOTH, by

    LAND, WATER, or AIR for COMPENSATION OF OFFERING THEIR

    SERVICES TO THE PUBLIC.

    Extraordinary diligence isrequiredto common carriers intransportinggoods

    and passengers

    Reasons:

    1. nature ofthe business2. public policy

    Registered owner primarily and solidarily with driver under the KABIT

    SYSTEM. Kabit system is contrary to public policy; therefore, void and

    inexistent.

    CIRCUMSTANCES UNDER WHICH COMMON CARRIERES CANNOT BE HELD

    LIABLE FOR THE LOSS/DESTRUCTION OF GOODS:

    1. flood, storm, earthquake, or othernatural calamities

    2. act of public enemy in war, either international or local

    5. act or omission oftheshipper or owner ofthegoods6. character ofthegoods ordefects ofthe packing7. order of competentauthority

    Extraordinary diligence lasts from the time the cargoes are loaded in the

    vessel until they aredischargedanddeliveredto the consignee.

    Air carriers can terminate services of pilots for serious misconduct and

    drunkenness because of itsextraordinary diligence.

    INSTANCES WHICH ARE NOT CASO FORTUITO:

    1. hijacking2. acts of strangers like thieves or robbers acted with grave or

    violence

    3. accidentsdueto defects of carrier4. wheretie blow-out

    Fire isnotanatural disaster

    Notice ofarrival ofgoodsamountsto constructivedelivery

    Shipper boundto observeall diligence in obtainingdelivery ofgoods

  • 8/6/2019 ZZZ Transportation

    8/18

  • 8/6/2019 ZZZ Transportation

    9/18

    maybbongalon9

    6. loss of baggage containing medicine, boxes, and suitcases ofpersonal belongings

    EXCEPTIONS TO RULE THAT CARRIER NOT LIABLE FOR MORAL DAMAGES IN

    BREACH OF CONTRACT:

    1. wherethe mishap results inthedeath of passenger2. where it is proved that the carrier isguilty of fraud or bad faith

    even ifdeathdoesnotresult

    3. wherethe passengersufferssocial humiliation, wounded feelings,anxiety and mental anguish

    Surviving passenger isnotentitledto moral damages. Mere carelessness of

    the carrierdoesnot perse constitutean inference of malice or bad faith on

    its part.

    Carriersubsidiarily liable for moral damages inactionsexdelicto.

    Exemplary damages cannot berecoveredasa matter ofright.

    Nominal and exemplary damages awarded for willful breach of contract

    committedthroughagent oremployee.

    Carrier incurring only delay not liable for moral andexemplary damages but

    only to the limitedamount printed inthe planeticket.

    Exemplary damages isallowableunder Kabit System.

    Common Carrier in Nominal Damages for failure of carrierto bring passenger

    to his destination but mere violation of a Contract of Carriage does not

    warrantrecovery for moral damages.

    In case of breach ofthe carrier's contractual obligationto carry his passenger

    safely to their destination, the carrier is solidarily liable for his driver's

    negligence. Exercise ofduediligence inselectingdriver isnotadefense.

    Preponderance of evidence sufficient to prove civil liability arising from

    negligence.

    -PPUUBBLLIICC SSEERRVVIICCEE LLAAWW

    (C.A. No. 146 as amended and modified by

    PD No. 1 Integrated Reorganization Plan and E.O.546)

    INTRODUCTION:

    PUBLIC SERVICE OR PUBLIC UTILITY DEFINED

    y PPuubblliicc SSeerrvviiccee- includesevery personthatnow orhereafter mayown, operate, manage or control inthe Philippines forhire or

    compensation, withgeneral or limited clientele, whether

    permanent, occasional oraccidental, anddone forgeneral

    business purposes, any common carrier, shipyard, ice plant,

    electric light, heatand power orany otherutility, (Sec. 13 b, C.A.

    146 asamended).

    y PPuubblliicc UUttiilliittyy- a business or service engaged in supplying thepublic with some commodity or service of public consequence.

    (Albano v. Reyes, 175 SCRA 264)

    ORDINARY AND PRIMARY PURPOSE OF THE PUBLIC SERVICE LAW

    y ORDINARY PURPOSE:To subject public servicesto state control andregulation.

    y SPECIFIC PURPOSES:1. To secureadequate, sustainedservice forthe public atthe least possible cost, and protectthe public against

    unreasonable chargesand poor inefficientservice.

    2. To protect and conserve investments which havealready been made for public service, and prevent

    ruinous competition.

    BASIS OF THE LEGISLATIVE POWER TO REGULATE PUBLIC SERVICES:

    y POLICE POWER, for the protection of the public as well as theutilitiesthemselves. (Pantranco v. P.S.C., 70 Phil 221)

    yy CCOONNSSTTIITTUUTTIIOONNAALL BBAASSIISS::

    1. ARTICLE XII, SECTION 11:> A franchise, certificate, or any other form of

    authorization for the operation of public utility shall be

    grantedto:

    - Filipino Citizens- Corporations or associations organized

    under Philippine Laws whereat least 60% of

    the capital is owned by Filipino Citizens.

    - 100% Filipino Management> Mass mediaand commercial telecommunicationsshallbe:

    - 100% Filipino Capital, and- 100% Filipino management

    2. ARTICLE XII, SEC 17:In times of national emergency, when the public interest so

    requires, the State may during the emergency and under

    reasonableterms, temporarily take over ordirectthe operation of

    any private owned public utility or businessaffected with public

    interests .

    3. ARTICLE XII, SECTION 18The state may, in the interest of national welfare or defense,

    establishand operate vital industriesandupon payment of justcompensation, transfer to public ownership utilities and other

    privateenterprisesto be operated by thegovernment.

    4. ARTICLE XII, SECTION 19Thestateshall regulate or prohibit monopolies when the public

    interestso requires; no combination inrestraint oftrade orunfair

    competitionshall beallowed

    OFFICES NOW CHARGED WITH ENFORCEMENT OF PUBLIC SERVICE LAW

    The Public Service Commissionhas beenabolished. The followingreplaced it:

    1. LAND TRANSPORTATION- Department of Transportation andCommunication (DOTC) and the Land Transportation Franchising

    and Regulatory Board (LTFRB)

    2. WATER TRANSPORTATION- Maritime Industry Authority(MARINA)

    3. AIR TRANSPORTATION- Air Transportation Office (ATO) headed byanassistantsecretary andthe Civil Aeronautics Board, whichhas

    been placedunderthe DOTC asanattachedagency.

    4. TELECOMMUNICATIONS- National TelecommunicationsCommission, which has been placed under the DOTC as an

    attachedagency.

    5. ENERGY- Board of Energy but transferred to the EnergyRegulatory Board (ERB)

    6. WATERWORKS- National Water Resources Council

    y The DOTC shall bethe primary entity in Transportationand Communication

    LIMITATIONS ON THE POWERS OF THE REGULATORY BOARDS,

    COMMISSIONS AND COUNCILS:

    1. General:Powers are limited from those granted in the legislation

    creatingthe body.

    2. Constitutional:Regulations imposed mustnothave theeffect ofdepriving

    an owner of his property without due process of law nor

    confiscating or appropriating private property without just

    compensation.

    3. Judicial:Boards, commissionsarenot judicial tribunalsandtherefore

    cannotdetermine judicial questionssuchas validity of contract.

    4. Jurisdiction:

  • 8/6/2019 ZZZ Transportation

    10/18

  • 8/6/2019 ZZZ Transportation

    11/18

    maybbongalon11

    Answer: No, while it istrue thata franchise is inthenature ofa

    contract, whichthe partiesto it mustrespect it isnota contractsuchas is

    protected from impairment by the Constitution.

    N.B. Theholder ofa legislative franchisehas preference overthe

    holder ofa municipal franchisegranted morethana year later.

    Iftheholder ofa municipal franchise wassubsequently

    granted witha legislative franchisethe former will berepealed by

    the latter.

    A municipality doesnothavethe legal rightto nullify a

    legislative franchise by arbitrarily refusing to approve plans ofthe

    company receiving the legislative franchise made pursuant to a

    provisiontherein.

    Notehoweverthatthe Commission may disapprovea

    municipal franchise and it may deny an application without

    infringing the legislative prerogative of the municipal council,

    because the Commission merely exercises a power granted by

    law.

    PSC has power to regulate manner of disconnecting

    services by MERALCO to delinquent customer. It can compel

    MERALCO that before it caneffectdisconnection of itservicesto a

    delinquent customer it isrequiredthat it must firstgivea written

    notice ofdisconnection 48 hours inadvance.

    c.) THE COMMISSION HAS ALSO THE POWER TO FIX AND

    DETERMINE INDIVIDUAL AND JOINT RATES, TOLLS, CHARGES,

    CLASSIFICATIONS OR SCHEDULES THEREOF, KILOMETRAGE, AND OTHER

    SPECIAL RATES. (Section 16 (c) (PBQ Bar 2000)

    y That before the Commission can fix rates there must first be anoticeandhearing.

    y HOWEVER, the Commission in its discretion can PROVISSIONALYapprove rates proposed by public services WITHOUT NOTICE

    AND HEARING PROVIDED that WITHIN THIRTY (30) DAYS

    THEREAFTER A HEARING MUST BE HELD UPON PREVIOUSPUBLICATION AND NOTICE TO THE CONCERNS OPERATING IN

    THE TERRITORY AFFECTED.

    E.g. ERB has authority to issue an order granting

    provisional increase of priceseven withoutnoticeandhearing.

    y EXTENT OF THE POWER OF THE COMMISSION TO FIX RATES.1. Rates are submitted by the public carriers but are subject to

    approval by the PSC which is NOT limited intheselection ofthe

    old or the new rates but could NOT establish such ratesasare

    properundertheevidence presented.

    2. The maximum rate fixed in a franchise, which its holder isauthorizedto collect, isalwayssubjectto arevisionandregulation

    by the PSC.3. The PSC hasalso the powerto ordertherefund of overcharges.

    Therequirement isnot inthenature ofa penalty but is merely a

    measure by which the public services concerned are asked to

    return whatthey didnothavetherightto collect.

    4. Inanother case, the Courtalso saidthat whenthe Commission isempowered by law to fixthe rates of freight which vessels may

    charge, it is impliedthatthe vessels may not legally demand more

    thanthoserates.

    5. The Commissionhasthe powerto altertheestablishedrates inacertificate of public convenience, especially wherethe order fixing

    the rates is in thenature ofan experiment fora period of four

    months.\

    6. Where itappearsthata proposed joint fatesystem withtransfersinrelationto a point of contract betweentwo transportation lines

    wouldservethe convenience ofthe public, the PSC hasauthority

    to finda public needand thereafter to approve such joint fare

    system.

    7. But the PSC cannot delegate to a public service its power to fixanddeterminetherates.

    y DETERMINATION OF JUST AND REASONABLE RATES.The fixing of rates is a legislative and governmental

    power over whichthegovernmenthas complete control. BUT it

    hasno powerto fixrates whichareunreasonable orto regulate

    them arbitrarily, and thatas to whether agiven rate is fairand

    reasonable is a judicial question over which the courts have

    complete control.

    N.B. There is a legal presumption that the rates are

    reasonableand it must be concededthatthe fixing ofrates by the

    governmentthrough itsauthorizedagent, involvestheexercise of

    reasonable discretion and unless there is an abuse of that

    discretion

    y REQUIREMENTS FOR A JUST AND REASONABLE RATE1. One which yieldsto the carriera fairreturnuponthe value ofthe

    property employed in performingtheservice;

    2. One which is fairto the public fortheservicesrendered.E.g. of circumstances justifying increase of rates

    exigencies ofthe presentandthe future viewed inthe light ofrecent

    developments and the experience gained in connection with the

    operation ofanother public utility analogously situated

    d.) TO FIX JUST AND REASONABLE STANDARDS, CLASSIFICATIONS,

    REGULATIONS, PRACTICES, MEASUREMENTS, OR SERVICE TO BE

    FURNISHED, IMPOSED, OBSERVED, AND FOLLOWED THEREAFTER BY ANY

    PUBLIC SERVICE. (SECTION 16 (D))

    e.) TO ASCERTAIN AND FIX ADEQUATE AND SERVICEABLE STANDARDS FOR

    THE MEASUREMENT OF QUANTITY, QUALITY, PRESSURE, INITIAL OR

    SERVICE RENDERED BY ANY PUBLIC SERVICE AND TO PRESCRIBE

    REASONABLE REGULATIONS FOR THE EXAMINATION AND TEST OF SUCH

    PRODUCT OR SERVICE, AND TO PRESCRIBE REASONABLE REGULATIONS FOR

    THE EXAMINATION AND TEST OF SUCH PRODUCT OR SERVICE AND FOR THE

    MEASUREMENT THEREOF. (SECTION 16 (E))

    f.) TO ESTABLISH REASONABLE RULES AND REGULATIONS, INSTRUCTIONS,

    SPECIFICATIONS, AND STANDARDS, TO SECURE THE ACCURACY OF ALL

    METERS AND APPLIANCES FOR MEASUREMENTS. (SECTION 16 (F))

    g.) TO COMPEL ANY PUBLIC SERVICE TO FURNISH SAFE, ADEQUATE,

    AND PROPER SERVICE AS REGARDS THE MANNER OF FURNISHING THE

    SAME AS WELL AS THE MAINTENANCE OF THE NECESSARY MATERIAL AND

    EQUIPMENT. (SECTION 16 (G))

    NOTES:

    The Commission has no power to change procedure

    relativeto inspectionandrepair of water meters.

    The PSC is induty bound to see to itthat persons or

    companies, holding certificates of public convenience, render

    withinareasonabletime the public servicethat they have been

    authorizedto render forthe benefit ofthe public.

    The PSC shall see to it that the companies holding

    Certificates of Pubic Convenience render their service with in a

    REASONABLE TIME.

    h.) TO REQUIRE ANY PUBLIC SERVICE TO ESTABLISH, CONSTRUCT,

    MAINTAIN AND OPERATE ANY REASONABLE EXTENSION OF ITS EXISTING

    FACILITIES SUCH EXTENSION IS REASONABLE AND PRACTICABLE AND

    WILL FURNISH SUFFICIENT BUSINESS TO JUSTIFY THE CONSTRUCTION OF

    THE SAID PUBLIC SERVICE REASONABLE WARRANTS THE ORIGINAL

    EXPENDITURE REQUIRED IN MAKING AND OPERATING SUCH EXTENSION.

    (SECTION 16 (H))

    NOTES:

    Before the PSC can exercise the above-mentioned

    duty there must first be notice and hearing.

    Thus, the PSC has ample powers to require and

    authorize public services which certificates of public convenience

    to extend their service when the necessity of the public so

    demands.

    PSC may grantextensionto applicant whose certificate

    is subject to condition of non-extension if the Commission is

  • 8/6/2019 ZZZ Transportation

    12/18

    maybbongalon12

    satisfied that public service or convenience requires ordemands

    that the line ofsuchextension berun, operatedandservedand

    that the applicant is financially capable of operating it, the

    Commission has the power to grant a certificate of public

    convenienceto theapplicant forthe operation ofsuchextension

    line.

    The PSC hasalso the powerto compel a public service

    auto-bus operator to change its route in view of the fact that

    whateverrightsthe operatorhasto theutilization ofthestreetsof a locality is only by virtue of the Certificate granted by the

    Commission.

    PSC can permitapplicantto operateshorterroutethan

    thatapplied by him whenthe circumstancesso demandand it is

    NOT forthe oppositor to insist thathe Commissionshouldhave

    concededtheapplicanta longerroute.

    i.) TO DIRECT ANY RAILROAD, STREET RAILWAY OR TRACTION COMPANY

    TO ESTABLISH AND MAINTAIN AT ANY JUNCTION OR POINT OF

    CONNECTION OR INTERSECTION WITH ANY OTHER LINE OF SAID ROAD OR

    TRACK, OR WITH ANY OTHER LINE OF ANY OTHER RAILROAD, STREET,

    RAILWAY OR TRACTION TO PROMOTE THE CONVENIENCE OF SHIPPERS OF

    PROPERTY, OR PASSANGERS. SECTION 16 (I)

    j.) TO AUTHORIZE, IN ITS DISCRETION, ANY RAILROAD, STREET RAILWAY OR

    TRACTION COMPANY TO LAY ITS TRACKS ACROSS THE TRACKS OF ANY

    RAILROAD, STREET RAILWAY OR TRACTION COMPANY OR ACROSS ANY

    PUBLIC HIGHWAY. SECTION 16 (J)

    k.) TO DIRECT ANY RAILROAD OR STREET RAILWAY COMPANY TO INSTALL

    SUCH SAFETY DEVICES OR ABOUT SUCH OTHER REASONABLE MEASURES AS

    MAY IN THE JUDGMENT OF THE COMMISSION BE NECESSARY FOR THE

    PROTECTION OF THE PUBLIC AT PASSING GRADE CROSSING OF

    (1) public highwaysandrailroads;(2) public highwaysandstreetrailway; or(3) railway andstreetrailways.

    l.) TO FIX AND DETERMINE PROPER AND ADEQUATE RATES OF

    DEPRECIATION OF THE PROPERTY OF ANY PUBLIC SERVICE WHICH WILL BE

    OBSERVED IN A PROPER AND ADEQUATE DEPRECIATION ACCOUNT TO BE

    CARRIED FOR THE PROTECTION OF STOCKHOLDERS, BONDHOLDERS OR

    CREDITORS.

    THE INCOME FROM INVESTMENTS OF MONEY IN SUCH FUND

    SHALL LIKEWISE BE CARRIED IN SUCH FUND. THIS FUND SHALL NOT BE

    EXPENDED OTHERWISE THAN FOR DEPRECIATION, IMPROVEMENTS, NEW

    CONSTRUCTION, EXTENSIONS OR CONDITIONS TO THE PROPERTY OF SUCH

    PUBLIC SERVICE. SECTION 16 (L)

    NOTES:

    The rate base is PRESENT VALUE, and it would be

    wholly illogical to adoptadifferentrule fordepreciation.

    If the rate base is present fair value, then the

    depreciation baseasto depreciable property isthesamething.

    m.) TO AMEND, MODIFY OR REVOKE AT ANY TIME CERTIFICATE

    ISSUED WHENEVER THE FACTS AND CIRCUMSTANCES ON THE STRENGTH

    OF WHICH SAID CERTIFICATE WAS ISSUED HAVE BEEN MISREPRESENTED OR

    MATERIALLY CHANGED. SECTION 16 (M)

    n.) TO SUSPEND OR REVOKE ANY CERTIFICATE ISSUED WHENEVER

    THE HOLDER THEREOF HAS VIOLATED OR WILLFULLY AND

    CONTUMACIOUSLY REFUSED TO COMPLY WITH ANY ORDER, RULE OR

    REGULATION OF THE COMMISSION. SECTION 16 (N)

    PROVIDED THAT THE COMMISSION FOR GOOD CAUSE MAY

    PRIOR TO THE HEARING SUSPEND FOR A PERIOD NOT TO EXCEED THIRTY

    (30) DAYS ANY CERTIFICATE OR THE EXERCISE OF ANY RIGHT OR

    AUTHORITY ISSUED OR GRANTED BY IT.

    o.) TO FIX, DETERMINE, AND REGULATE, AS THE CONVENIENCE OF

    THE STATE MAY REQUIRE, A SPECIAL TYPE OF AUTO-BUSSES, TRUCKS, AND

    MOTOR TRUCKS TO BE HEREAFTER CONSTRUCTED, PURCHASED, AND

    OPERATED BY OPERATORS AFTER THE APPROVAL OF THIS ACT;

    TO FIX AND THE DETERMINE THE SPECIAL REGISTRATION FEE

    FOR AUTO-BUSSES, TRUCKS, AND MOTOR TRUCKS SO CONSTRUCTED AND

    OPERATED.

    PROVIDED: THAT SAID FEES SHALL BE SMALLER THAN THOSE

    CHARGED FOR AUTO-BUSSES, TRUCKS, AND MOTOR TRUCKS OF TYPES NOT

    MADE REGULATION UNDER THIS SUBSECTION. SECTION 16 (O)

    LIMITATIONS ON THE POWER TO AMEND

    a. That beforea modification, amendment, orrevocationshall beallowed,it must be shown that the conditions from which the certificate was

    grantedno longerexist orhavealtered, or thatthe certificateholder

    has violated ordeliberately refused to comply with the orders, rules

    andregulations ofthe Commission.

    b. There must be notice and hearing before the revocation can beeffected.

    - Without notice and hearing? The Order canceling the Certificate is

    void.

    E.g. A singlehold-up incident isnotaground forrevokinga certificate

    of public convenience.

    N.B.

    Thegrant ofauthority regardingunfranchised operationrequires

    noticeandhearing.

    Instances when NO NOTICE AND HEARING are necessary.

    1. Where the order isa mere order of investigation preparatory to thefinal hearinganddecision oftheapplication.

    2. Where the modification of the certificate is only in form and not insubstance, suchas, an ordergrantinganapplication forsubstitution.

    3. Wherethe order is merely to giveadditional timeto register vehicles.4. An order forgood causesuspending fora periodnot to exceed thirty

    daysany certificate ortheexercise orauthority to issued orgranted.

    5. Wheretheauthorized line ofthe oppositoraredifferent from those forthe applicant, the former cannot be considered to have substantial

    interest in theapplication so asto requirehis personal notification of

    thehearing.

    NOTE: Thatlack of notice is deemed cured where the petitioners

    were able to timely oppose petitions. They aredeemedto have

    been given due process of law which simply means the

    opportunity to beheard.

    Where the Commission entered its order without

    noticeandhearing, thedefect, ifany, is cured by ahearing onthe

    petitioners motionto reconsiderthe order. However, thedefect

    is waived where theapplicant petitions foranotherextension of

    sixty (60) days in whichto install its franchise.

    PSC hasthe powerto re-open case, under its powerto

    revokeand modify.

    GROUNDS FOR SUSPENSION OR REVOCATION OF CERTIFICATETherightto operatea public utility isa privilegegranted by the

    state. Thus it can berevoked whentheholder:

    1. Violates contumaciously refuses to comply with any rule, order orregulation ofthe commission

    2. Isa meredummy3. Ceases operation by placinghis bus instorage4. Abandonstheservice

    NO REVIVAL OF THE CPC DUE TO THE FOREGOING.The right to a certificate of public convenience which has

    been forfeited by the holders voluntary and unauthorized

    abandonment of his service and failure to register his equipment

    shouldnot berevivedsimply because the government would not be

    able to collect his tax liabilities.

    The mere failure ofthe Governmentto collectthetax liabilities ofa

    holder ofa certificate of public convenience isnotasufficientground

    forrevokingthe Commissionsdecisionto cancel his certificate where

    thereasonsthereforearethattheholderhas completely and

  • 8/6/2019 ZZZ Transportation

    13/18

  • 8/6/2019 ZZZ Transportation

    14/18

  • 8/6/2019 ZZZ Transportation

    15/18

    maybbongalon15

    NOTES:

    y Where the PSC is empowered by franchise ofoperator only to fix the rates it has no authority to

    impose fines on said holder of franchise.

    y In order that a respondent public service may be heldcriminally liable the act committed by it must be

    expressly prohibited. In the absence of said express

    prohibition the holder of the franchise cannot be held

    criminally liable.

    Section 22.

    Observance of the orders, decisions, and regulations of the

    Commissionand of thetermsand conditions ofany certificate may also be

    enforced by mandamus or injunction inappropriate cases. PROVIDED, that

    the Commission may compromiseany casethat may ariseunderthis Act in

    such mannerand forsuchamountas it may deem justandreasonable.

    NOTES:

    1. The RTC has concurrent jurisdiction with the Commissionover cases of an operator violating his or its certificate.

    2. However, the filing of the case before the Commissionmust not be premature.

    3. RTC may grant an injunction against public serviceoperators;

    4. RTC may grant the injunction against a public servicewithout authority to operate.

    5. The disobedience to an order of a court forbidding a pubicservice company to collect a fare less than that authorized

    by the PSC constitutes criminal contempt.

    6. RTC may issue mandatory injunction to compel an operatorto furnish service.

    Cases where the RTC cannot grant injunctions:

    1. The RTC cannot issue injunctions against the orders of theCommission.

    2. The RTC cannot enjoin an operator from doing what theCommissionhasauthorized.

    Section 23.

    Any public servicecorporationthatshall:

    a. perform, commit, or do any act or thingforbidden or prohibited; or

    b. shall neglect fail or omitto do or perform any actorthinghereinto bedone or performed

    SHALL BE PUNISHED:

    a. a fine NOT exceeding P25,000.00; orb. Imprisonment NOT exceeding 5 years; orc. BOTH inthediscretion ofthe court.

    Section 24.

    Any public serviceperson shall:

    a. perform, commit, ordo any act orthing forbidden

    or prohibited; or

    c. shall neglect fail or omitto do or perform any actor thing herein to be done or performed SHALL

    BE PUNISHED by

    a. a fine NOT exceeding P2,000.00; orb. Imprisonment NOT exceeding 2 years; orc. BOTH inthediscretion ofthe court.

    PROVIDED:

    That for operatinga private passengerautomobileasa

    public service withouthavinga certificate of public convenience

    for the same the offender shall be subject to the penalties

    provided for in Section 67 (j) of Act 3992.

    NOTE:

    A person permittinghis privately ownedandregistered

    carto beused forhire is punishableunderthis Section.

    Section 25.

    Any person who shall knowingly and willfully neglect, fail or omit

    to do or perform or who shall knowingly and willfully cause or join or

    participate with others in causingany public service corporation or company

    to neglect, fail or omitto do or perform xxxshall be PUNISHED

    a. a fine NOT exceeding P2,000.00; orb. Imprisonment NOT exceeding 2 years; orc. BOTH inthediscretion ofthe court.

    Section 26.

    Any person who shall destroy, injure, or interfere with any

    apparatus orappliance owned or operated by or in charge ofthe Commission

    or itsagents, shall bedeemedguilty ofa misdemeanorandupon conviction

    shall be PUNISHED

    a. a fine NOT exceeding P1,000.00; orb. Imprisonment NOT exceeding 6 months; orc. BOTH inthediscretion ofthe court.

    Section 27.

    The Actshall NOT havetheeffectto release or waiveany right of

    action by the Commission or by any personxxx.

    Section 28.

    Violations of the orders, decisions, and regulations of the

    Commissionand ofthetermsand conditions ofany certificate issued by the

    Commissionshall prescribeafter60 daysand violations ofthe provisions of

    this Actshall prescribedafter180 days.

    NOTES:

    **PPrreessccrriippttiioonn ooffccrriimmee..

    The period of prescription commences to run from the day on

    whichthe crime isdiscovered by theoffended party, theauthorities ortheiragents. The commencement ofa criminal action interruptstherunning ofthe

    period of prescription.

    The 60 day prescription period under Section 26 of the Public

    Service Law isavailabledefense only in criminal or penal proceedings.

    PROCEDURE AND REVIEW

    Section 29.

    All hearings and investigations before the Commission shall be

    governed by rulesadopted by the Commission and inthe conductthereof

    theCommission shall notbe boundby the technical rules of legal evidence:

    PROVIDED: Thatthe Public Service Commissioner may summarilypunish any person who is guilty of misconduct in the presence of the

    presence ofthe Commissioner for CONTEMPT:

    PENALTY: FINE notexceeding P200.00 or for IMPRISONMENT

    notexceeding 10 days or BOTH.

    To enforcethe provisions ofthis Section, the Commission may, if

    necessary requesttheassistance ofthe MUNICIPAL POLICE fortheexecution

    ofany order made forsaid purpose.

    NOTES:

    y The Rules of Court is suppletory to the rules of the Commission.

    COURT RULINGS AS TO PARTIES.

    1. Whilethe Commission isauthorizedto make rules forthe conduct oftheir business, it couldnotseatatnaught the fundamental rule ofall

    proceedingsthat only partieshavingareal interest will beheard.

    2. A party NOT affected or prejudiced cannot filean opposition.3. One public service corporation cannot assume the name and be

    substituted inthe place ofanother public service corporation.

    4. A legal representative oftheestate ofthedeceasedapplicant may besubstituted forthe latter.

    5. One who has been granted a legislative franchise to operate an iceplant, althoughnot yetan operator ofsuch public utility.

    6. The fact that a party is the lessee of a line does not bar him fromapplying fora certificate of its own inthesame line.

    7. A case involvingthegrant of Certificate of Public Convenienceto therespondent becomes mootandacademic wheretherespondent ceases

    to bea bus operator, and itshould bedismissed.

  • 8/6/2019 ZZZ Transportation

    16/18

  • 8/6/2019 ZZZ Transportation

    17/18

    maybbongalon17

    shall be punished for EACH offense by a FINE not exceeding

    P1,000.00 or by IMPRISONMENT not exceeding 6 months, or

    BOTH inthediscretion ofthe court.

    Section 31.

    No personshall beexcused from asubpoena orsubpoenaduces

    tecum issued by the Commission EXCEPT when the testimony or evidence

    required ofhim may tendto incriminatehim.

    Without the consent of the interested party NO member oremployee of the Commission shall be compelled or permitted to give

    testimony inany civil suitto whichthe Commission isnota party, withregard

    to secrets obtained by him inthedischarge ofhis official duty.

    Section 32.

    The Commission isalso allowed to take deposition of witnesses

    who areresiding within or withoutthe Philippinesto betaken inthe manner

    prescribed by the Rules of Court.

    (See: Deposition of Witnesses - Rules 23 to 29 1997 Rules on Civil

    Procedure).

    Section 33.

    Every order made by the Commission shall be servedupon the

    person or public serviceaffectedthereby, within 10 days from thetimesaid

    order is filed by personal delivery or by ordinary mail, upon theattorney of

    record or in casethere beno attorney of record, uponthe party interested;

    and in casesuch certified copy issent by registered mail, the registry mail

    receiptshall bethe prima facieevidence ofthereceipt ofsuch order by the

    public service indue course of mail.

    Section 34.

    Any interested party may request the reconsideration of any

    order, ruling, ordecision ofthe Commission by means ofa petition filednot

    laterthan 15 daysafterthedate ofthenotice ofthe order, ruling, ordecision

    inquestion.

    NOTES: Limitation on Commissions power to order rehearing.

    A rehearing cannot be granted by the PSC for the

    reconsideration ofaquestion whichhas beendecided by the SC

    onappeal to thattribunal.

    While the Commission is given wide power to grant

    rehearing, adistinction must be made betweenthose ordersthat

    remainentirely withinthe powers of the Commissionand those

    orders whichare broughtto the SC forreview and final decision.

    Motion must be based on facts.

    Therightto beheardand presentevidence insupportof the allegations, contained in his motion of intervention,

    naturally follows, provided the motion for intervention or

    reconsideration state facts sufficient to justify a reconsideration

    ofthequestioned orderandthegranting ofanew hearing.

    Section 35. The Supreme Court is hereby given jurisdiction to

    review any order, ruling ordecision ofthe Commissionandto modify orset

    asidesuch order, ruling ordecision when it clearly appearsthatthere isno

    evidence beforethe Commissionto supportreasonably such order, ruling, or

    decision, or that the same is contrary to law, or that it was without

    jurisdiction ofthe Commission.

    NOTES: An unverified Motion for Reconsideration containing

    generalities cannot justify setting aside of a decision handed down in

    response to a clear public need, where there is evidence that the busesoperated by the movant cannotaccommodateall the passengers on those

    lines.

    Remediesto setaside order of Commission.

    There are only two remedies available in the Supreme Court to set aside an

    order of the Public Service Commission.

    1. Petition for review see Rule 45, Rules of Court2. Petition for Certiorari see Rule 65, Rules of Court

    N.B. RTC not the CA has jurisdiction over actions to annul orders of the

    Commission because even the above mentioned remedies was indicated

    to be available only to the SC still you need to follow the Rules on

    Hierarchy of Courts which provides that Petition for Review or on Certiorari

    shall first be filed before the RTC, to CA and then to SC.

    y As a rule, Court does not interfere with administrativeaction prior to its completion and finality.

    y Construction given by an administrative agencypossessed of the necessary special knowledge,expertise and experience deserves great weight and

    respect, term radiotelephony includes cellular

    phones. (PLDT v. NTC, 190 SCRA 717).

    Section 36.

    Any order, ruling, ordecision ofthe Commission may bereviewed

    on theapplication ofany person or public service may bereviewed on the

    application ofany person or public serviceaffectedthereby, by certiorari in

    appropriate cases, or by petition to beknownas petition forreview, which

    shall be filed within 30 days from the notification of such order, ruling or

    decision.

    NOTES:

    The rule on the 15 day and 30 day period is the same

    in the Energy Regulatory Period. But as to the LTFRB and the NTC

    the period within which appeal may be made is within 30 days

    from notice.

    As to the National Water Resources Council now

    Board- appeals to the RTC must be made within 15 days from

    the date the party appealing receives a copy of the decision.

    As to the Maritime Industry Authority appeal may be made

    within 30 days from notice.

    y Petition for review filed seven (7) months after receiptof notice of denial is considered to have been filed out

    of time.

    y Objections not raised in the Commission cannot beraised on appeal.

    y Compromise agreement of parties bars certiorari orreview.

    y Motion for reconsideration not a condition precedentfor appeal.

    y If the petitioner shows lackof interest in the case thepetitioner has no standing in the Court, and his petition

    for review of an order of the PSC mustbe dismissed

    with costs.

    Section 37.

    The institution ofa writ of certiorari or otherspecial remedies in

    the Supreme Court shall in no case supersede the Supreme Court shall so

    direct, andtheappellant may berequired by the Supreme Courtto give bond

    insuch form and ofsuchamountas may bedeemed proper.

    Section 38. The Chief ofthe legal division orany otherattorneys of

    the Commissionshall representthesame inall judicial proceedings. Itshall

    be the duty of the Sol Gen to represent the Commission in any judicial

    proceedings if, for special reason, the Commissioner shall request his

    intervention.

    Section 39. Any proceeding inany court ofthe Philippinesdirectlyaffectingan order ofthe Commission orto whichthe Commission isa party,

    shall have preference overall other civil proceedings pending insuch court,

    EXCEPT election case.

  • 8/6/2019 ZZZ Transportation

    18/18