GR 39706; (November, 1933) (Digest)
G.R. No. 39706 ; November 15, 1933
CEBU TRANSIT CO., INC., petitioner-appellant, vs. AGUSTIN JEREZA, respondent-appellee.
FACTS
Agustin Jereza applied to the Public Service Commission for a certificate of public convenience to operate five midget taxicabs in Cebu City and nearby areas. The Cebu Transit Co., Inc., along with other operators, opposed the application. By agreement of the parties, the commission designated the justice of the peace of Cebu City as a commissioner to take depositions and receive evidence. A hearing was held before the commissioner where all parties presented evidence and cross-examined witnesses, with objections noted but not immediately ruled upon. The evidence was forwarded to the commission, which then rendered a decision granting Jereza’s application without holding a further hearing or notifying the parties’ counsel. Cebu Transit Co. appealed, arguing that the commission erred by deciding without a formal hearing and by approving allegedly ruinously low rates.
ISSUE
1. Whether the Public Service Commission erred in granting the certificate without a formal hearing and based solely on depositions taken before a commissioner.
2. Whether the approved taxicab rates constituted ruinous competition against existing operators.
RULING
1. No. The commission did not err. The Public Service Law exempts the commission from the technical rules of evidence and expressly allows it to take depositions before a commissioner. The hearing before the designated justice of the peace, agreed upon by all parties, satisfied the requirements of due process. The objections raised during depositions were deemed waived or were presumed to have been considered by the commission when it reviewed the evidence.
2. No. The approved rates for Jereza’s smaller and less comfortable midget taxicabs were not ruinously competitive. The difference in rates was justified by the difference in service quality, allowing the public to choose according to their convenience. The commission’s findings that the new service was necessary and would not cause ruinous competition were supported by evidence. The decision was affirmed.
AI Generated by Armztrong.