Professional Documents
Culture Documents
_______________
* EN BANC.
22
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 1/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
23
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 2/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
24
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 3/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
25
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 4/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
26
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 5/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
27
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 6/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
28
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 7/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
CARPIO, J.:
The Case
The Facts
_______________
29
_______________
30
jurisdiction, this does not mean that all others are excluded in
engaging in such service, especially, if the district is not capable of
supplying water within the area. This Board has time and again
ruled that the “Exclusive Franchise” provision under P.D. 198 has
misled most water districts to believe that it likewise extends to
be [sic] the waters within their territorial boundaries. Such
ideological adherence collides head on with the constitutional
provision that “ALL WATERS AND NATURAL RESOURCES
BELONG TO THE STATE”. (Sec. 2, Art. XII) and that “No
franchise, certificate or authorization for the operation of public
[sic] shall be exclusive in character”.
xxxx
All the foregoing premises all considered, and finding that
Applicant is legally and financially qualified to operate and
maintain a waterworks system; that the said operation shall
redound to the benefit of the homeowners/residents of the
subdivision, thereby, promoting public service in a proper and
suitable manner, the instant application for a Certificate of Public
Convenience is, hereby, GRANTED.”5
_______________
31
Issue
_______________
7 Id., at p. 35.
32
_______________
8 G.R. Nos. 162243, 164516 and 171875, 3 December 2009, 606 SCRA
444.
9 Id., at p. 485.
10 G.R. No. 170516, 16 July 2008, 558 SCRA 468.
11 450 Phil. 744; 402 SCRA 612 (2003).
12 Supra note 10 at p. 540.
13 487 Phil. 531; 446 SCRA 299 (2004).
14 Id., at p. 579; p. 366.
33
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 12/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
under the laws of the Philippines at least sixty per centum of the
capital of which is owned by such citizens, nor shall such
franchise, certificate or authorization be exclusive in
character or for a longer period than fifty years.” (Emphasis
supplied)
_______________
34
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 13/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
16 Id., at p. 488.
17 424 Phil. 372; 373 SCRA 316 (2002).
18 Id., at p. 400, p. 344.
19 457 Phil. 101; 410 SCRA 82 (2003).
20 Id., at 117; p. 93.
21 345 Phil. 9; 279 SCRA 506 (1997).
22 Id., at p. 34; p. 531.
23 234 Phil. 443; 150 SCRA 450 (1987).
24 Id., at p. 451; p. 459.
35
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 14/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
25 G.R. Nos. 157870, 158633 and 161658, 3 November 2008, 570 SCRA
410.
36
_______________
37
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 16/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
District
_______________
38
_______________
39
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 18/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
35 Id., at p. 13.
36 Id.
40
_______________
41
_______________
46 Id., at p. 362.
47 G.R. No. 166494, 29 June 2007, 526 SCRA 130.
48 Id., at p. 144.
49 496 Phil. 83; 456 SCRA 176 (2005).
50 Id., at pp. 91-92; pp. 185-186.
51 Supra note 27.
42
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 21/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
52 Id., at p. 730.
53 G.R. Nos. 178158 and 180428, 4 December 2009, 607 SCRA 413.
54 Id., at p. 528.
55 Supra note 41.
56 Id., at p. 142.
57 Supra note 43.
43
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 22/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
44
DISSENTING OPINION
BRION, J.:
I dissent.
Lest this Dissent be misunderstood, I shall clarify at the
outset that I do not dispute the majority position that an
exclusive franchise is forbidden by the Constitution. The
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 23/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
45
_______________
46
_______________
47
_______________
5 Ponencia, p. 11.
6 Ponencia, p. 8.
7 Supra note 1.
48
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 27/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
8 Kilusang Mayo Uno Labor Center v. Garcia, Jr., G.R. No. 115381,
December 23, 1994, 239 SCRA 386, 412.
49
MR. DAVIDE: If the idea is really to promote the private sector, may
we not provide here that the government can, in no case,
practice monopoly except in certain areas?
MR. VILLEGAS. No, because in the economic field, there are
definitely areas where the State can intervene and can
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 28/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
50
_______________
51
_______________
52
_______________
53
_______________
54
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 33/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
WHEREAS, existing domestic water utilities are not meeting the needs
of the communities they serve; water quality is unsatisfactory; pressure is
inadequate; and reliability of service is poor; in fact, many persons receive
no piped water service whatsoever;
x x x x
WHEREAS, local water utilities should be locally-controlled and
managed, as well as have support on the national level in the area of
technical advisory services and financing[.]
55
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 34/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
57
“The Court, as the highest court of the land, may be guided but
is not controlled by precedent. Thus, the Court, especially with a
new membership, is not obliged to follow blindly a particular
decision that it determines, after re-examination, to call for a
rectification. The adherence to precedents is strict and rigid in a
common-law setting like the United Kingdom, where judges make
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 36/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
_______________
58
guide, if not control, the Court in this case is, therefore, devoid of
rationality and foundation. They seem to conveniently forget that
the Constitution itself recognizes the innate authority of
the Court en banc to modify or reverse a doctrine or
principle of law laid down in any decision rendered en
banc or in division.”
_______________
59
_______________
60
_______________
61
_______________
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 40/42
8/16/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 646
62
Petition granted.
central.com.ph/sfsreader/session/00000173f507db46633f113e003600fb002c009e/t/?o=False 42/42