G.R. No. 46040 ; November 29, 1938
PAMPANGA BUS COMPANY, INC., oppositor-appellant, vs. FERNANDO ENRIQUEZ, applicant-appellee.

G.R. No. 46041; November 29, 1938
PAMPANGA BUS COMPANY, INC., oppositor-appellant, vs. MARCELO DIAZ, applicant-appellee.

FACTS

The Pampanga Bus Company, Inc. appealed two decisions of the Public Service Commission granting the applications of Fernando Enriquez and Marcelo Diaz to lift certain restrictions on their certificates of public convenience. The appellant argued that an agreement dated November 9, 1929, between it and Enriquez, wherein Enriquez agreed not to present any application to operate in the territory served by the appellant, barred the applications. The appellant also contended the matter was res judicata and that the Commission altered trip hours without proper notice or hearing.

ISSUE

Whether the Public Service Commission erred in ignoring the 1929 agreement and granting the applications to lift the restrictions on the appellees’ certificates.

RULING

No. The Supreme Court affirmed the decisions of the Public Service Commission. The 1929 agreement, whereby Enriquez waived his right to apply for the lifting of restrictions, is illegal and void as it constitutes a waiver against public interest. Certificates of public convenience are imbued with public interest, and the Commission has the continuing power and duty to modify or alter its orders to adapt to new circumstances and better serve the public. The waiver of a right granted by law for public benefit is contrary to public policy under Article 4 of the Civil Code. The Court also found no reason to disturb the Commission’s factual findings, which were reasonably supported by evidence.

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