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A. L. AMMEN TRANSPORTATION CO., INC., vs. GOLINGCO, G.R. No. 171151, April6, 1922

DOCTRINE:

All public utilities which desire to operate in the Philippine Islands must first obtain from

the Public Utility Commissioner a certificate to the effect that the operation of said publicutility, and the authorization to do business, will promote the public interest in a properand suitable way, unless the business was in operation by the public utility at the timethe Public Utility Law went into effect

FACTS:

The plaintiff is a corporation engaged in the business of exploiting, conducting, andmanaging for itself a public utility business for the transportation of passengers andfreight by means of trucks between several towns of the Province of Alba. Therespondent is also the owner of a public utility business operating between Legaspi and

Albay.

The defendant was said to have transferred 3 of his trucks between Legaspi and Nagaand such were making regular and continuous trips between the said towns andtransporting freight in such a way that was he was illegally competing with the plaintiffsbusiness. The plaintiffs business has been legally in operation between the towns since1912 and since that time until now has been giving the public a regular, constant,adequate, and permanent service for the transportation of passengers and freight. Thedefenadant, in operating in these towns, had not obtained previously from the PublicUtility Commission a certificate to the effect that the operation of his trucks between themunicipalities aforesaid or between any other municipalities in the line from Legaspi,

Albay, to Naga, Ambos Camarines, and the authority to operate some or all of the trucksof his business will promote adequately and conveniently the public interests as required

by Act No. 2694.

The defendant used to operate between these towns but sometime in 1819 abandonedoperations in the said towns. The defendant having abandoned any right that he had ormight have had to operate his trucks in said line by virtue of the existing laws prior toMarch 9, 1917, and not having obtained later the required certificate of public necessityfrom the Public Utility Commission authorizing him to own, exploit, manage and conducta business of public utility between the towns situated in the line from Legaspi, Albay, toNaga, Ambos Camarines, the operation by the defendant of his trucks or any of them isillegal and contrary to law.

The defendant is now causing damage to the plaintiff by continuing the operation of his

aforesaid trucks for public utility. The plaintiff in turn, went to court to ask for apreliminary injunction to issue against defendant to halt the latters business operationbetween the said towns until the said defendant may obtain from the Public UtilityCommission the certificate required by section 14 of Act No. 2694

ISSUE/S:

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W/N the defendant is illegally operating in said towns?

Who has a better right to do conduct a public utility business between the said towns?

HELD: YES. The petitioner has a better right over the operation of public utility betweenthe said towns having complied with the mandate of the law in the operation of a public

utility.

RATIO:

Owners of public utilities operating under the supervision of the Public UtilityCommissioner have the right to maintain appropriate actions against other public utilitieswho have not been authorized to operate in competition with the complainant.

All public utilities which desire to operate in the Philippine Islands must first obtain fromthe Public Utility Commissioner a certificate to the effect that the operation of said publicutility, and the authorization to do business, will promote the public interest in a properand suitable way, unless the business was in operation by the public utility at the time

the Public Utility Law went into effect-which is not the case before us, because while thedefendant public utility was in existence prior to the passage of Act No. 2694, it began tooperate on new routes after the passage of said Act without first securing the certificateprovided by section 14 of the Act.