G.R. No. 33867 ; February 17, 1931
ALFREDO CARMELO and RAMON ORIOL, petitioner-appellants, vs. ENRIQUE MONSERRAT, respondent-appellee.

FACTS

Enrique Monserrat obtained a certificate of public convenience from the Public Service Commission to operate a taxicab service in Manila and its suburbs. Subsequently, Alfredo Carmelo and Ramon Oriol applied for a similar certificate. Monserrat opposed the application. The Commission denied Carmelo and Oriol’s application, prompting them to appeal to the Supreme Court. The Commission’s denial was based on the absence of conclusive proof of public necessity for additional service and a desire to protect Monserrat’s prior investment.

ISSUE

Whether the Public Service Commission erred in denying the application for a certificate of public convenience to operate a taxicab service, based on the claim that Monserrat, as the prior operator, had an exclusive or preferential right to the business.

RULING

Yes. The Supreme Court reversed the Commission’s decision. The Court distinguished the operation of taxicabs from fixed-route transportation services like autobuses. A taxicab service operates without fixed routes or schedules, at the discretion of customers. Therefore, the rule against granting a subsequent license for the “same route” does not apply. There is no valid legal reason to grant Monserrat an exclusive right to operate taxicabs in Manila, as such exclusivity would be against the public interest. Competition between taxicab operators would likely promote better public service. The case was remanded to the Commission with instructions to grant the petitioners’ application.

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