LPU FIRST MEETING FINALS

1. business corp engage in business of transportation (bus company) what should they first
obtain?

•CPC granted by LTFRB

•Franchise
first apply a franchise from Congress and second a CPC.

If not a public utility are u required CPC? NO.

what is a provisional authority? It is granted first temporary while the issuance of CPA is pending.

For Elon Mumsh what does he get after provisional authority? A CPC

What is the difference between bus ooerators and elon mumsh case? Only CPC and not
franchise is needed in Elon Mumsh.

Answer to question #3? Yes inherently legislative in nature.

franchise is the legislative authorization to engage in business/activity/enterprise of a public

nature, while CPC is a regulatory measure which constitutes the franchise's authority to
commence operation (Issued by legislature?? sabi atty)

•FRANCHISE NEEDS CPC

•IF U HAVE CPC NO NEED FRANCHISE SINCE IT IS EQUIVALENT TO A LEGISLATIVE
FRANCHISE

Can LTFRB put in CPC to require you to get a franchise? No. Regulatory Body has been already
delegated a power to grant a CPC. It will be absurd to impose additional requirement or
condition of a franchise since it tantamount the same.

However in franchises, The Congress can impose conditions since it is within their legislative
power.

When Congress issues a franchise, what legislative power is it? Police Power.

Why is it called CPC?

PAL vs CAB DISCUSSION.

Grand Air cannot operate because it doesn't have a legislative franchise.

There is nothing in the law nor in the Constitution, which indicates that a legislative
franchise is an indispensable requirement for an entity to operate as a domestic air transport
operator.

Under Consti Franchise needed in a Public Uti

Although Section 11 of Article XII recognizes Congress’ control over any franchise,
certificate or authority to operate a public utility, it does not mean Congress has exclusive
authority to issue the same. Franchises issued by Congress are not required before each and
every public utility may operate

Congress has gave CAB powers to give operation of transport, a CPC. Hence, a franchise is not
anymore needed since it tantamount to the same.

Requirements of Valid Delegation of Legislative Power?

1. COMPLETENESS test. This means that the law must be complete in all its terms and conditions
when it leaves the legislature so that when it reaches the delegate, it will have nothing to do but
to enforce it.
2. SUFFICIENT STANDARD test. The law must offer a sufficient standard to specify the limits of
the delegate’s authority, announce the legislative policy and specify the conditions under which
it is to be implemented.

There's valid delegation to CAB.

VALID DELEGATION – Congress, by giving the respondent Board the power to issue permits for
the operation of domestic transport services, has delegated to the said body the authority to
determine the capability and competence of a prospective domestic air transport operator to
engage in such venture. This is not an instance of transforming the respondent Board into a
mini-legislative body, with unbridled authority to choose who should be given authority to
operate domestic air transport services.

There is no more need to apply for a legislative franchise once a CPC is granted by a delegated
regulatory body.

Who issues CPC ZFOR BROADCAST COMPANIES OR RADIOS COMPANY?

The National Telecommunications Commission

why is there renewal of franchise in Congress? (why ABSCBN needs to renew its franchise if it
can just renew its CPC to the NTC?)

PAL-CAB CASE 90's / DIVINAGRACIA CASE 09'

IN DIVINAGRACIA CASE THE BROADCASTING CHANNELS VIOLATED THE CONDITION OF
THEIR FRANCHISE.

BROADCAST AND TV STATION ARE REQUIRED TO OBTAIN A LEGISLATIVE FRANCHISE.AFTER

SECURING IT THEYA RE REQUIRED TO OBTAIN THEIR CPC BEFORE THEY CAN OPERATE.

DOES NTC HAS THE POWER TO ISSUE CPC? YES. IT HAS THE POWER. CONGRESS
DELEGATED THE POWER TO THEM.

THE LAW GOVERNING HERE IS THE RADIO CONTROL ACT which the law expressly says so the
it is required a franchise AND A COC AT THE SAME TINE. WHILE IN CAB IT IS THE DOMESTIC
AIR TRANSPORTATION LAW.
Hence, they are not incompatible.
If the regulatory body who is granted the power CPC, does it also have the power to revoke/
cancel CPC? No. Only the legislature can UNLESS the law expressly says so that the regulatory
body is vested with the power to cancel. It is not a vested right that can be assumed.

The power to issue includes power to cancel provided DUE PROCESS is observed.

DOES NTC HAS POWER TO CANCEL CPC's?

No. Even as the (NTC) is vested with the power to issue Certificates of Public Convenience
(CPCs) to broadcast stations, it is not expressly vested with the power to cancel such CPCs
[or otherwise empowered to prevent broadcast stations with duly issued franchises and
CPCs from operating radio or television stations]

----------------------------------
LPU Apr.23 2021

BEFORE A PUBLIC UTILITY MAY OPERATE WHAT IS THE MOST IMPORTANT DOCUMENT?

IF THERE IS VALID DELEGATION TO REGULATORY BODY A CPC IS ALREADY EQUIVALENT TO

A FRANCHISE? Yes. In PAL vs CAB case.

Company XYZ is a 100% Filipino Corp and tend to operate in a broadcasting station.
Company XYZ already had a CPC from NTC can it already operate as broadcasting? No. In
Divinagracia vs. Consolidated Broadcasting Syatem

what was divinagracia's main prayer to NTC? To revoke the CPCs of the two broadcasting
network since they violated its condition.

Does NTC has the power to revoke? No. They do not have the express authority to revoke
permits. Although it has the power to grant.

You can still argue that the law grants the power to issue CPC to NTC hence it shall also have the
power to revoke. (General Rule) Impliedly daw dapat interpretation.

Broadcasting network needs a legislative franchise first AND then get a CPC.

If he has a legislative franchise but no CPC from NTC can it operate? No. Both is needed.

effect if NTC suddenly revoke the CPC? How does it violate legislative authority? You render
negatory yung legislative franchise nya. If it already possesses a legislative franchise and it will
revoke its CPC, magiging mas makapangyarihan ang NTC sa Congress. They are meant to
execute the law they don't have discretion to interpret it. In short, it will frustrate the separation
of powers.

•A franchise is a law enacted by Congress.

BATAS YANNNN HINDI LANG PERMIT LOL.

What is the other reasoning kung bakit di pedeng magkaroon ng power to cancel and NTC?
The SC had to implement a stricter approach in this case and not to impliedly interpret it. Under
the Bill of Rights, Freedom of the Press.

If consti right is involved what is the test to be used in assessing the legal framework of NTC or
its power to revoke?
-The strict scrutiny test
what is its twin requirements?

The government must also demonstrate that the law is "narrowly tailored" to achieve the
compelling purpose (compelling state interest), and uses the "least restrictive means" to achieve
the purpose so it does jot invade other rights. The laws affecting NTC are not able to satisfy
these requirements. Hence, UNCONSTITUTIONAL.

you cannot demand the franchise. It is a privilege. State has a right in the exercise of its police
power to determine which could be allowed to operate as a public utility.

The Law grants Government a lot of leeways in regulating public utilities. but in here, there is a
shift in the tone of the SC and is protecting that public utility of the broadcast station.

these tv networks are also exercising their right if freedom of expressing, speech and press that
is why there is sudden shift in the tone of Supreme Court

Grounds why NTC has no power to revoke:

1. ????
2. ??? di ko narinig huhu
3. To give NTC power to revoke is unconstitutional.

What is the remedy to cancel CPC? How can we cancel it? File a quo warranto proceeding.
(Judiciary)

what is a quo waranto? Latin for "by what authority" A challenge for an entity to do something. It
will lead to revocation of its aithorization.

who can file a quo waranto? State. Office of the Solicitor General. (OSG)
main party is the Republic of the PH.

Executive dept does not have power to nullify since it will violate sep of powers.

Do we assail the CPC in the quo warranto? No. It is a challenge to the franchise not the CPC
itself.

To summarize, The remedy is not to file a cancellation of COC before NTC since it has no power
its remedy is to file a quo warranto to cancel its franchises. After that, NTC may be ordered to
cancel their CPC.
------- Next topic

We already discussed regulate. Which one to allow to operate as public utility.

What is the other power the Govt has over power utilities? The power to fix rates.

What is the ultimate standard test?

It should be RJ (Reasonable & Just)
PHILCOMSAT CASE.

What power is the executive dept exercising in issuing franchise? Quasi-legislative power,
original power was vested in the Congress but it has been vested with limited legislative power.
(Quasi is latin for - Franchise)

What about rate fixing power? Is it Quasi legis?

No. Quasi-Judicial Power. There is dispute in the pricing whether it is reasonable or just.

who fixes rate:

jeepney fare - lrfrb
food, meat, commodities, etc - DTI

what is legislative power? Power to make/amend/repeal laws. (Congress)

executive- implementation/execute/enforce of the law. they also prosecute those who violate.

judicial power? the power to interpret laws (art.8 consti).... it is the referee to ask if there really is
a violation of a law. They based it on the law. It involves finding of facts or investigation. To look
for evindence and supporting documents before deciding. May nagtatalo dito na dalawang
party at magkakaroon ng ruling.

Example where Exec dept. quasi judicial power is used? Aside from PHILCOMSAT CASE.
Also the NLRC, it is not a court but it hears disputes and decided. It part of the executive branch
particularly the DOLE

Congress enacts RA 123456 an act fixing maximum price of chicken, is it usurping judicial
power? is it possible to exercise quasi-judicial power thru a law? Will it not violate the separation
of power? By what authority can Congress exercise this power?

is the power to fix rate Quasi-Judicial? Yes. In the PHILCOMSAT CASE. It is a judicial power.

But in can also be quasi-legislative. When such rates are merely meant to apply or be imposed in
certain kinds. It is quasi-judicial if there is a requirement of evidence, fact finding, or cross
examination.

As to application?
Quasi legislative - applies to all kind in the same class.
Quasi judicial - applies only to the parties
Ex.
Bus ask ltfrb to add P5 in the fare. Commuters asked cancel the increase. There is a dispute.

Why is it important to know if it is quasi legis/judicial? To avoid usurpation of law and also to
know if prior notice and hearing is needed.

what is not require in quasi legislative that is required in the quasi-judicial? prior notice and
hearing.

(Prior notice and opportunity of parties to be heard and show their evidence is needed)

Why not in quasi legislative? since in quasi judicial, only the public utility involved will be
affected while in quasi legislative, a lot of them will become affected.

Is notice required paren sa quasi legislative?

where is it published? No. Not a prior notice but a publication only.

Reason ~> Congress has no obligation to inform us before enacting a law. But notice happens
after the law is enacted. Which means it is required to be published after.
Where is law published?
official gazette or news paper in general circulation

In PHILCOMSAT was it quasi legis/judicial?

It is quasi-judicial, because There is a finding of a fact here.

What is that finding of fact established by NTC? No opportunity to be heard on the dispute of
reduction of rates.

What is the basis of its reduction? The financial statement of PHILCOMSAT.

SC RULED THAT IF THERE IS A FINDING OF FACT AGAINST PHILCOMSAT HENCE, IT SHOULD

HAVE HAD THE CHANCE TO REFUTE IT.

Was the rate fixing power here affirmed/nullified? It was nullified because since it is a quasi-
judicial, Philcomsat was denied procedural due process.

------ Next Topic. Ranada Case

Tama ba yung ginawa ni Ranada na pumunta sa RTC matapos sya matalo sa TRB? No, it shall fail.
It violates the primary administrative jurisdiction and non exhaustion OF REMEDY.

What is the doctrine? Rule on exhaustion of administrative remedy. Which means that before
you go to court you have exhausted all the remedies of the executive department.

In the procedural aspect it shall be dismissed because Padua did not follow this.
REMEDY* file motion for reconsideration or file an appeal to the office of the president within 10
days.
If he lost on these two, then that is the only time he can go to the Courts.

WHAT IS THE SUBSTANTIVE ISSUE? WON TRB VIOLATED THE DUE PROCESS?

NO NOTICE AND HEARING. IS IT REQUIRED ACCORDING THE SUPREME COURT?

YES BUT……

IT WAS PUBLISHED IN NEWSPAPER FOR THREE CONSECUTIVE WEEKS.

WAS THERE A HEARING?

IS IT QUASI JUDICIAL OR QUASI LEGISLATIVE.

THERE IS HERE A FINDING OF A FACT. SO IT IS QUASI JUDICIAL
AND IT WAS INITIATED BY ONE OF THE FRANCHISEE/CITRA.

THE INCREASE HERE IS A PROVISIONAL INCREASE, IT IS A PROVISIONAL RELIEF. IT IS

ALLOWED EX PARTE ISSUANCE SINCE IT IS JUST TEMPORARY. MEANS NO NO PRIOR NOTICE
AND HEARING NEEDED.

IN PHILCOMSAT THERE IS HEARING AND PRIOR NOTICE, IT IS THE FINAL RATE ALREADY THAT
IS WHY IT IS STRICT. IN THE PADUA CASE, EVEN IF IT IS ALSO QUASI-JUDICIAL, SC IS LENIENT
BECAUSE IT IS JUST A PROVISIONAL INCREASE/TEMPORARY THAT IS WHY SC IS LENIENT.

NEXT MEETING; FINAL READING ASSIGNMENTS. AND OTHER CASES IN RATE FIXING
POWERS. DALAWA NALANG DAW.

-----------------------------
Apr 27

mali ang singil ng meralco? raise it to ERB or Court?

may ginagawan poste ang MERALCO, changing wooden logs to concrete. Nalaglag yung poste
damaging my house. I want to claim reimbursement for damages. where to go?

BF HOMES VS MERALCO CASE DISCUSSION

ERC has original and exclusive jurisdiction on what cases? rates fines, penalty... & disputes
(Under EPIRA) NOT all types of disputes. It is usually related to the operation of the public utility.

doctrine violated? The doctrine of primary jurisdiction. define this.

What is jurisdiction?
What determines their right to hear cases? This is determined by law.

Juan dela Cruz is walking in Mendiola, one of thie wires fell and he was electrecuted and got
third degree burns. Now he want to seek reimbursement from MERALCO. As a lawyer of him,
where do you go? Court. It doesn't fall in the jurisdiction of ERC. Not related to the operation. 1.
There is no breach of contract here. It is a civil law matter that pertains to negligence.

How is this different from BF HOMES CASE?

There is a contractual relationship here. ERC has very limited jurisdiction, it was very specific in
which cases they can hear and decide. (Administrative agencies are tribunals with limited
jurisdiction, it is expressly enumerated by law) Hence, not all disputes fall in their respective
administrative agencies, usually its mostly RATES.

------- new topic

Supposing Juan Dela Cruz owns and operates a grab car/transport network company. He owns
a public certificate to operate it from tnvs. He does this only as a part time since he is a law
student lol. Graduating na sya and is about to take the bar exam kaya di nya na kaya magdrive
ay magoperate as public utility. He entered to a lease contract with Pedro De Guzman over the
car. One day nakabangga si Pedro, nung magsasampa na ng kaso ang biktima nalaman nya na
ang tnvs ay nakapangalan ky Juan. Victim filed complaint against Juan as owner and opearator
of the car driven by Pedro. Juan said he was not the one operating and driving the car. In fact, he
has a lease agreement with Pedro hence, he shall be made liable.

Who should authorize the lease? LTFRB

MONTOYA VS IGNACIO CASE.

what is the effect to the validity of agreement if it is without the approval of the relevant
regulatory agency? valid, however it will not bind psc and public since not approved??

Why should it be approved first by the then Public Service Commission? The approval is
necessary because first franchise is personal in nature.... generally it is unassignable

not talking about franchise but the properties of a franchise holder. ie the car not the franchise/
cpc.

Only Mr. Ignacio /owner-operator was sued by the heirs of the victim but not the one whom the
Jeepney was leased. Should he also be liable? Yes.

what about damages/civilly?

Is he guilty of quasi delict? Yes. Solidary liable. Can be asked to either party.

bakit siningil ng buo si Ignacio? It was solidary liability daw. So it's perfectly fine to sue only him.
But they can also sue the one driving.

•No approval by PSC, Owner/Operator can be sued but it does not mean or preclude that the
one actually driving has no liability. He can then file for reimbursement (a third party complaint /
idadamay sa kaso) against him.

-------- new case.

Y transit Company vs NLRC

- dismissed unfair labor practices but granted the money claim of the employee.
- what is the remedy of the employees here against employee? writ of execution of judgment, to
get the award
- what is the next remedy? ask for properties of the employer, auction it.

file affidavit of third party claim?? exclude from levy si y transit dahil hindi sila ang kinasuhan.
Legal transit company lang. Ordinarily sila lang ang liable sa judgment award at property lang
nila ang pwede ilevy ng court. Kaya bawal isama ang 10bus ng Y transit, dahil excluded sila. SC
rejected that claim. Sa mata ng batas sila pa din daw may ari dahil the transfers were never
approved.

-----------

can regulated agency collect fees? In general, it depends if there is a law allowing them to
collect fees.

In collecting fees what power is being exercised? Can be police power(purpose is to regulate)
or taxation(purpose is to raise revenue, no limit but there should be a law)

Can they collect taxes? Yes. If the law expressly so say

REPUBLIC VS ICC CASE DISCUSSION

- revenue raising
- taxation power
- NULL AND VOID BC NOT REASONABLE AND JUST

----------- REVIEW

power in regulation
1. power to issue franchises which is from Congress or CPC/CPCN which is from body which are
authorized.
CPC IS EQUAL TO LEGISLATIVE FRANCHISE. HOWEVER, IF THE LAW EXPRESSLY REQUIRES A
PUBLIC UTILITY TO HAVE A FRANCHISE AND CPC THEN THEY SHALL COMPLY.
2. Power to fix rate

if there's dispute how much u pay, you go to the administrative agency not the court directly.

What condition for a party to bring this dispute to Court/Judiciary? Exhaustion of administrative
agency/remedy. (Consti Sec 1 Art 😎 Ultimately it is judiciary who can interpret the law.

3. Power to approve sale of property or transfer of sale

There should be prior approval for this since it is imbued of public interest
4. Collection of fees
Can be police power or taxation. depending on the nature/purpose of collection. depending on
how the law allows it.