Case Brief: Kilusang Mayo Uno Labor

Center vs Garcia & LTFRB

JANUARY 23, 2018 JEFF REY
G.R. No. 115381 December 23, 1994

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 LTFRB to provincial buses to set a fare range
above existing authorized fare range is unconstitutional and invalid.

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.