G.R. No. L-12937; July 31, 1959
RCA-COMMUNICATIONS, INC., petitioner-appellant, vs. HON. RAFAEL M. CONTRERAS, ET AL., respondent. JOSE F. ALFONSO, ET AL., respondents-appellees, PHILIPPINE LONG DISTANCE COMPANY, respondent-appellee.

FACTS

Petitioner RCA-Communications, Inc., holding a franchise under Act 3178 to operate wireless communications stations between the Philippines and foreign countries, and respondent Philippine Long Distance Telephone Company (PLDT), holding a franchise under Act 3436 to operate a telephone system, have been jointly operating a radio-telephone service between the Philippines and foreign countries since 1933 under authorization from the Public Service Commission. PLDT proposed to terminate this arrangement and substitute its own equipment, filing an application with the Radio Control Board on or about April 4, 1946, for a radio construction permit and frequency allocation. RCA opposed this application, arguing that the Radio Control Board lacked jurisdiction to issue such a permit without first obtaining a certificate of public convenience from the Public Service Commission and the approval of the President of the Philippines upon the recommendation of the Secretary of Public Works and Communications, as required by PLDT’s franchise. RCA filed an action for prohibition in the Court of First Instance of Manila to prevent the Radio Control Board and the Secretary from adjudicating PLDT’s application. The lower court dismissed the petition and dissolved a preliminary injunction, holding that the Secretary had jurisdiction to consider the application as a necessary step before any recommendation to the President.

ISSUE

Whether the lower court erred in dismissing the petition for prohibition, specifically on the grounds that: (1) PLDT’s franchise and existing certificates did not authorize it to operate radio-telephonic facilities with foreign countries without further authorization; (2) RCA had a cause of action to prevent the adjudication of PLDT’s application by the Radio Control Board and the Secretary; and (3) the action was premature.

RULING

The Supreme Court affirmed the dismissal of the petition. First, the Court found that PLDT’s franchise (Act 3426, Section 2) expressly authorized it to install, maintain, and operate radio-telephone equipment for communications between the Philippines and other countries. Even assuming further authorization from the Public Service Commission was required, the Secretary of Public Works and Communications undeniably had the jurisdiction to receive, consider, and pass upon PLDT’s application as a preliminary step. Second, the Court held that no cause of action existed. PLDT had merely filed an application; there was no allegation that it had already breached its contract with RCA or refused to honor it. A cause of action for breach or violation of rights did not yet exist. Third, for the same reason, the action was indeed premature. The appeal was dismissed, and the judgment was affirmed.