G.R. No. 100727 March 18, 1992
COGEO-CUBAO OPERATORS AND DRIVERS ASSOCIATION, petitioner, vs. THE COURT OF APPEALS, LUNGSOD SILANGAN TRANSPORT SERVICES, CORP., INC., respondents.

FACTS

A certificate of public convenience to operate a jeepney service on the Cogeo-Cubao route was issued in favor of respondent Lungsod Silangan Transport Services Corp., Inc. (Lungsod Corp.) in 1983. Petitioner Cogeo-Cubao Operators and Drivers Association, a non-stock, non-profit organization registered with the SEC, was formed with the main purpose of representing its members regarding ownership of units and similar matters. Perturbed by Lungsod Corp.’s Board Resolution adopting a “Bandera System” requiring members to pay for tickets to queue at a disputed pathway, petitioner, led by Romeo Oliva, formed a human barricade on November 11, 1985, and forcibly took over the dispatching of passenger jeepneys. This action gave rise to a suit for damages filed by Lungsod Corp. The trial court rendered a decision ordering petitioner to pay Lungsod Corp. P50,000.00 as actual damages and P10,000.00 as attorney’s fees. The Court of Appeals affirmed the trial court’s findings but modified the award, deleting the actual damages and attorney’s fees and instead awarding nominal damages of P10,000.00 to Lungsod Corp. Petitioner appealed, contending the association was formed not to compete but for the common protection of drivers from abusive traffic officers and to eliminate Lungsod Corp.’s practice of requiring jeepney owners to execute deeds of sale, and that in organizing, members were merely exercising their right to redress grievances.

ISSUE

Whether the petitioner usurped the property right of the respondent corporation, thereby entitling the latter to an award of nominal damages.

RULING

Yes. The petition is denied and the decision of the Court of Appeals is affirmed. A certificate of public convenience is considered property in the broad sense, conferring a valuable asset and the right to operate facilities for public service. It cannot be taken or interfered with without due process of law. The trial court found, and the appellate court affirmed, that petitioner association forcibly took over the operation of the jeepney service on the Cogeo-Cubao route for ten days without authorization from the Public Service Commission, violating respondent’s right to operate under its certificate. While petitioner has a constitutional right to redress grievances, the manner of exercise must not undermine public order or violate the legal rights of others. The forcible takeover paralyzed respondent’s activities and earnings, constituting an invasion of a property right. Under Article 2221 of the Civil Code, nominal damages may be awarded for such an invasion. The Court of Appeals correctly awarded P10,000.00 as nominal damages.