KILUSANG MAYO UNO LABOR CENTER, petitioner,

vs.

HON. JESUS B. GARCIA, JR., the LAND TRANSPORTATION

FRANCHISING AND REGULATORY BOARD, and the PROVINCIAL BUS
OPERATORS ASSOCIATION OF THE PHILIPPINES, respondents.

FACTS: 
In 1990, DOTC Sec. Oscar Orbos issued Memo Circular to LTFRB Chair
Remedios Fernando to allow provincial bus to change passenger rates w/in a
fare range of 15% above or below the LTFRB official rate for a 1yr. period.
This is in line with the liberalization of regulation in the transport sector which
the government intends to implement and to make progress towards greater
reliance on free market forces.

Fernando respectfully called attention of DOTC Sec. that the Public Service
Act requires publication and notice to concerned parties and public hearing. In
Dec. 1990, Provincial Bus Operators Assoc. of the Phils. (PBOAP) filed an
application for across the board fare rate increase, which was granted by
LTFRB. In 1992, then DOTC Sec. Garcia issued a memo to LTFRB
suggesting a swift action on adoption of procedures to implement the
Department Order & to lay down deregulation policies. Pursuant to LTFRB
Guideline, PBOAP, w/o benefit of public hearing announced a 20% fare rate
increase.

Petitioner Kilusang Mayo Uno (KMU) opposed the move and filed a petition
before LTFRB w/c was denied. Hence the instant petition for certiorari w/
urgent prayer for a TRO, w/c was readily granted by the Supreme Court.

ISSUE: 
Whether the authority granted by LTFB to provincial buses to set a fare range
above existing authorized fare range is unconstitutional and invalid.
REPORT THIS AD

HELD:
The grant of power by LTFRB of its delegated authority is unconstitutional.
The doctrine of Potestas delegate non delegari (what has been delegated
cannot be delegated) is applicable because a delegated power constitutes not
only a right but a duty to be performed by the delegate thru instrumentality of
his own judgment. To delegate this power is a negation of the duty in violation
of the trust reposed in the delegate mandated to discharge such duty. Also, to
give provincial buses the power to charge their fare rates will result to a
chaotic state of affairs ad this would leave the riding public at the mercy of
transport operators who can increase their rates arbitrarily whenever it
pleases or when they deem it necessary.