Supreme Court decision re prior operator rule.docx - Batangas Transportation Co v Orlanes G.R No L-28865(52 Phil 455 Dec 19 1928 Supreme Court En Banc

Supreme Court decision re prior operator rule.docx -...

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Batangas Transportation Co. v. Orlanes, G.R. No. L-28865 (52 Phil., 455); Dec. 19, 1928 Supreme Court En Banc Facts: In 1925, Orlanes sought to have a Certificate of Public Convenience (CPC) to operate a line of auto trucks with fixed times of departure between Taal and Bantilan, with the right to receive passengers and freight from intermediate points. Orlanes was known as an irregular operator between Bantilan and Taal. Batangas Transportation Co., (BTC) appeared and filed an application for a permit, praying that the petition of Orlanes be denied. BTC alleges that it was a regular operator between Taal and Rosario since 1918; that the service maintained by the company is sufficient to satisfy the convenience of the public; and that the granting of permit in favor of Orlanes would result in ruinous competition and to the grave prejudice of the company and without benefit to the public. The Public Service Commission granted the petition of Orlanes. Hence, this petition. Held: The Supreme Court ruled that decision of the Public Service Commission in granting to Orlanes the license in question is revoked and set aside. So long as the first licensee keeps and performs the terms and conditions of its license and complies with the reasonable rules and regulations of the Commission and meets the reasonable demands of the public, it should have more or less of a vested and preferential right over a person who seeks to acquire another and a later license over the same route. Otherwise, the first license would not have protection on his investment, and would be subject to ruinous competition and thus defeat the very purpose and intent for which the Public Service Commission was created.
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