G.R. No. L-25962 September 30, 1975
MARTIRES ERENO CO., petitioner, vs. PUBLIC SERVICE COMMISSION and VELASCO and CO., respondents.

FACTS

Petitioner Martires Ereno Co., a general partnership, applied with the Public Service Commission for a certificate of public convenience to install and operate a 10-ton ice plant in Casiguran, Sorsogon, and to sell ice in Casiguran and the neighboring municipalities of Juban, Magallanes, and Irosin. The application was opposed by respondent Velasco & Co., an existing ice plant operator in Sorsogon, which argued that public necessity did not require a new plant as it was adequately serving the area, and that the petitioner was not legally and financially qualified. The Commission denied the application, finding that the petitioner failed to prove a public need for the new plant, noting the opponent’s capacity to increase its own production, and also casting doubt on the Filipino citizenship of one partner, Jose Ereno.
The petitioner elevated the case to the Supreme Court. The evidence presented showed that the four municipalities had no local ice plant, forcing residents to procure ice from distant plants in Sorsogon or Bulan, which were 21 to 50 kilometers away, by sending money and empty sacks via bus conductors. The municipalities, with significant populations and fishing industries, had their municipal councils endorsing the petitioner’s application. The Commission, however, gave weight to the opponent’s existing service and its ability to expand.

ISSUE

The primary issues are: (1) whether public necessity exists to warrant the establishment of a new ice plant in Casiguran to serve the surrounding municipalities, and (2) whether the petitioner partnership is legally qualified to operate such a utility.

RULING

The Supreme Court reversed the Commission’s decision and granted the petition. On the issue of public necessity, the Court held that the paramount principle is that public interest, necessity, and convenience must be the primary consideration, and the number of beneficiaries is immaterial. The evidence clearly demonstrated a substantial need: the affected municipalities were distant from existing plants, their fishing industries required ice for preservation, and the current method of procurement was inconvenient and inefficient. The Court emphasized that having a local plant is inherently more advantageous than relying on distant suppliers, even if those suppliers have depositories or can theoretically expand. The mere existence of a competitor is not a legal bar to a new authorization when a public need is evident.
On the legal qualification of the petitioner, the Court found the Commission’s ruling on Jose Ereno’s citizenship to be unfounded. The burden of proving alienage, which would disqualify the applicant, rests on the opponent. The opponent failed to present any substantial evidence to support its claim of Ereno’s alienage. In the absence of such proof, the presumption of citizenship under the Constitution and laws of the Philippines stands. Therefore, the petitioner was deemed legally qualified. The Court concluded that the Commission’s decision was not reasonably supported by evidence and ordered the grant of the certificate of public convenience.