Anglo Fil vs.

Lazaro

Facts:

Respondent Philippine Ports Authority (PPA) implemented a policy of integrating

contractors engaged in stevedoring services and have only one stevedoring contractor to
engage in cargo-handling services in Manila South Harbor to insure efficiency and economy in
cargo-handling operation and provide better service to port users and to amply protect the
interest of labor and the government as well. The evaluation of performance of existing
contractors made by a special committee created by PPA resulted to an award in favor of Ocean
Terminal Services, Inc. (OTSI).

Petitioners withhold-over permits, contends that the award is invalid because contracts entered
into with local and foreign clients or customers would be impaired.

Issue: Whether or not PPA have the power and authority to award an exclusive stevedoring
contract in favor of respondent OTSI.

Ruling: Petition Denied. Manila South Harbor is a public property owned by the State, wherein
operations of the port including stevedoring services are subject to regulation and control for
the public good and interest of the general welfare. In addition, the contract clause cannot
override the police power enacting public regulations intended for the general welfare.