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KMU vs Garcia Case Digest

Kilusang Mayo Uno Labor Center vs Garcia 239 SCRA 538 (1994) Facts: The Kilusang Mayo Uno Labor Center (KMU) assails the constitutionality and validity of a memorandum which, among others, authorize provincial bus and jeepney operators to increase or decrease the prescribed transportation fares without application therefore with the LTFRB, and without hearing and approval thereof by said agency. Issue: Whether or not the absence of notice and hearing and the delegation of authority in the increase or decrease of transportation fares to provincial bus and jeepney operators is illegal? Held: Under Section 16 (c) of the Public Service Act, as amended, the legislature delegated to the defunct Public Service Commission the power of fixing the rates of public services. LTFRB, the existing regulatory body today, is likewise vested with the same under Executive Order 202. The authority given by the LTFRB to the bus operators to set fares over and above the authorized existing fare is illegal and invalid, as it is tantamount to undue delegation of legislative authority. Under the maxim potestas delegate non delegari potest – “what has been delegated cannot be delegated.” The policy allowing provincial bus operators to change and increase their fares would result not only to a chaotic situation but to an anarchic state of affairs. This would leave the riding public at the mercy of transport operators who may increase fares, every hour, every day, every month or every year, whenever it pleases them or whenever they deem it necessary to do so. Furthermore, under the Section 16 (a) of Public Service Act, there must be proper notice and hearing in the fixing of rates, to arrive at a just and reasonable rate acceptable to both the public utility and the public.