G.R. No. L-3661; August 29, 1950
SANTIAGO ICE PLANT & CO., INC., petitioner-appellant, vs. RAFAEL LAHOZ, respondent-appellee.

FACTS

Rafael Lahoz applied with the Public Service Commission for a certificate of public convenience to install and operate a two-ton ice plant in Echague, Isabela. Santiago Ice Plant & Co., Inc., an existing operator authorized to sell ice in nine municipalities including Echague, opposed the application. Santiago Ice Plant argued that it had applied to increase its plant’s capacity and that a new plant would lead to ruinous competition. The Commission found that Santiago Ice Plant had not been providing adequate and regular service to Echague, with irregular deliveries and frequent shortages, and that Echague had sufficient demand to justify a local plant. It granted Lahoz’s application.

ISSUE

Whether the Public Service Commission erred in granting Lahoz a certificate of public convenience to operate an ice plant in Echague, despite the opposition of the existing operator.

RULING

No. The Supreme Court affirmed the Commission’s decision. The Court held that its review is limited to determining whether there is evidence to reasonably support the Commission’s findings, not to re-examine the proof de novo. The Commission’s finding of inadequate service by Santiago Ice Plant was supported by evidence. The paramount consideration in public utility cases is public convenience and welfare; a local ice plant in Echague is more advantageous than one located 16 kilometers away in Santiago. The claim of ruinous competition was not substantiated by concrete proof, especially given the existing operator’s wide service area and plans for expansion.

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