G.R. No. L-4821 December 17, 1952
NATIVIDAD ARIAGA, petitioner, vs. ELPIDIO JAVELLANA, respondent.

FACTS

Petitioner Natividad Ariaga, along with Mariano Cacho and Juan Salvador, filed separate applications with the Public Service Commission for certificates of public convenience to install, maintain, and operate a 30-ton ice plant with cold storage service within the City of Iloilo, with authority to sell ice in the city and throughout Iloilo Province. The applications were opposed by existing operators Elpidio Javellana and La Paz Ice Plant and Cold Storage Co., Inc. The three applications were heard jointly. On March 28, 1950, the Commission in banc (composed of Commissioners Ocampo, Prieto, and Paredes, Jr.) rendered a unanimous joint decision granting each applicant a certificate to install and operate a 15-ton ice plant and cold storage within the City of Iloilo, with authority to sell their produce in the city and province. Oppositor Javellana filed a motion for reconsideration. While an appeal by La Paz Ice Plant was pending, the Commission refrained from acting on Javellana’s motion. After La Paz withdrew its appeal, the Supreme Court, upon a mandamus petition by Javellana, ordered the Commission to act on his motion. The Commission then acted, resulting in split orders: Commissioner Ocampo voted to deny the motion and maintain the original decision; Commissioners Prieto and Paredes, Jr. voted to modify the decision, holding that the ice plants should be established somewhere within the Province of Iloilo (not necessarily within the city) in places to be designated by the applicants. Petitioner Ariaga’s motion for reconsideration of these modifying orders was denied by split vote, prompting this petition for review. Petitioner argues the modification is unfair and prejudicial, citing her heavy investment made in reliance on the original decision and that the modification lacks basis in the pleadings and evidence.

ISSUE

Whether the Public Service Commission, through the orders of Commissioners Prieto and Paredes, Jr., acted correctly in modifying its original unanimous decision to require the ice plants to be established somewhere within the Province of Iloilo instead of within the City of Iloilo.

RULING

No. The Supreme Court set aside the modifying orders and reinstated the original decision of the Public Service Commission dated March 28, 1950. The Court held that the modification had no basis in the evidence presented in the cases. All evidence submitted by the applicants was aimed at establishing the necessity of installing the plants within the City of Iloilo. The oppositors did not present evidence showing that any particular town or municipality in the province could warrant such an investment. The motion for reconsideration by Javellana did not put the place of establishment at issue; it only challenged the finding of an ice shortage and claimed a preferential right to provide additional service. The Court emphasized the fundamental rule that the Commission’s decision must be based on the evidence presented. Furthermore, the Court noted that the Supreme Court had previously, in a related certiorari case (G.R. Nos. L-4053-4055), reaffirmed the original decision and recognized the applicants’ investments made in good faith pursuant to that decision. To require petitioner to move her plant to an uncertain location within the province would be unfair, unjust, and tantamount to punishing her for relying on the Commission’s unanimous authorization.