G.R. No. 37878 ; November 25, 1932
MANILA ELECTRIC COMPANY, petitioner, vs. PASAY TRANSPORTATION COMPANY, INC., ET AL., respondents.

FACTS

Manila Electric Company (Meralco) filed a petition requesting the members of the Supreme Court, sitting as a board of arbitrators, to fix the terms and compensation for certain transportation companies to use Meralco’s Pasig bridge. This request was based on Section 11 of Act No. 1446 (Meralco’s franchise), which provided that such terms and compensation “shall be fixed by the members of the Supreme Court, sitting as a board of arbitrators, the decision of a majority of whom shall be final.” The transportation companies opposed the petition.

ISSUE

Whether Section 11 of Act No. 1446 is valid and whether the members of the Supreme Court, sitting as a board of arbitrators, can legally act under said provision.

RULING

No. The Supreme Court held that Section 11 of Act No. 1446 is invalid and that the members of the Court cannot legally act as a board of arbitrators under that provision. The Court reasoned that: (1) The provision attempts to grant non-judicial power to the members of the Supreme Court, which contravenes the Organic Act limiting the Court to the exercise of judicial power only; (2) A board of arbitrators is not a court and does not exercise the jurisdiction prescribed for the Supreme Court; (3) Making the arbitrators’ decision “final” would oust the courts of jurisdiction and deny a public utility not a party to the original franchise a judicial remedy, which is contrary to public policy; and (4) It would create an anomalous situation where the Supreme Court could be asked to review a decision made by its own members acting as arbitrators. Consequently, the members of the Supreme Court declined to act on the petition.

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