G.R. No. L-31946, March 12, 1930
A. L. AMMEN TRANSPORTATION CO., petitioner-appellant, vs. MARIA DE MARGALLO, objector-appellee.

FACTS

Maria de Margallo applied for a certificate of public convenience to operate an autobus line between Legaspi and Manito, Albay, on September 23, 1926. The A. L. Ammen Transportation Co. (Ammen) opposed the application, claiming prior rights. Ammen had been granted a certificate on April 30, 1927, to operate between Legaspi and Banquerohan (a segment of the Legaspi-Manito route), based on its application filed February 10, 1926. It also acquired the certificate of Felipe Lotivio, who was granted a certificate on April 19, 1927, for the full Legaspi-Manito route, despite Lotivio’s application being filed later than Margallo’s. The road between Legaspi and Manito was not fully constructed at the time; only the Legaspi-Banquerohan segment was operational. The Public Service Commission granted Margallo’s application on June 11, 1929. Ammen moved for reconsideration, citing its prior application and existing service, but the commission denied it. Ammen appealed, arguing the commission erred in granting Margallo’s certificate and denying reconsideration.

ISSUE

Whether the Public Service Commission erred in granting Maria de Margallo a certificate of public convenience to operate between Legaspi and Manito, thereby disregarding the prior rights of A. L. Ammen Transportation Co.

RULING

Yes. The Supreme Court reversed the commission’s decision. It held that Ammen had prior rights to operate between Legaspi and Banquerohan based on its earlier application and the efficient service it had been rendering. The Court revoked the portion of Margallo’s certificate covering Legaspi to Banquerohan, as it conflicted with established jurisprudence protecting prior operators. However, regarding the segment from Banquerohan to Manito, the Court declined to define the parties’ rights because that portion of the road was merely proposed and not yet constructed. The Court directed that an exclusive certificate be issued to Ammen for the Legaspi-Banquerohan route, conditioned on continued efficient service. No costs were awarded.