Nov 2, 2010

Taxicab Operators vs. The Board of Transportation

GR L-59234, 30 September 1982
En Banc, Melencio-Herrera (J): 12 concur, 2 concur in the result


FACTS: To insure that only safe and comfortable units are used as public conveyances and in order that the commuting public may be assured of comfort, convenience, and safety, the Board of Transportation (BOT) issued Memorandum Circular phasing out the old and dilapidated taxis. Pursuant to OT circular, respondent Director of the Bureau of Land Transportation (BLT) issued Implementing Circular formulating a schedule of phase-out of vehicles to be allowed and accepted for registration as public conveyances. The Taxicab Operators of Metro Manila, Inc., Felicisimo Cabigao and Ace Transportation filed a petition for "Certiorari, Prohibition and mandamus with Preliminary Injunction and Temporary Restraining Order", to declare the nullity of Memorandum Circular of the BOT and Memorandum Circular of the BLT.

ISSUES: Whether or not the implementation and enforcement of the assailed memorandum circulars violate the petitioners' constitutional rights to (1) Equal protection of the law; (2) Substantive due process; and (3) Protection against arbitrary and unreasonable classification and standard.

HELD: On Procedural and Substantive Due Process: Petitioners cannot justifiably claim that they were deprived of procedural due process. Neither can they state with certainty that public respondents had not availed of other sources of inquiry prior to issuing the challenged Circulars for the Board gave a wide range of choice in gathering necessary information or data in the formulation of any policy, plan or program. It is not mandatory that it should first call a conference or require the submission of position papers or other documents from operators or persons who may be affected, this being only one of the options open to the Board, which is given wide discretionary authority. Furthermore, as public contend it is impractical to subject every taxicab to constant and recurring evaluation, not to speak of the fact that it can open the door to the adoption of multiple standards, possible collusion, and even graft and corruption. A reasonable standard must be adopted to apply to an vehicles affected uniformly, fairly, and justly. The span of six years supplies that reasonable standard. The product of experience shows that by that time taxis have fully depreciated, their cost recovered, and a fair return on investment obtained. They are also generally dilapidated and no longer fit for safe and comfortable service to the public specially considering that they are in continuous operation practically 24 hours everyday in three shifts of eight hours per shift. With that standard of reasonableness and absence of arbitrariness, the requirement of due process has been met.

On Equal Protection of the Law: The law being enforced in Metro Manila only and was directed solely towards the taxi industry does not violate their right to equal protection of the law for the traffic conditions are not the same in every city, a substantial distinction exists so that infringement of the equal protection clause can hardly be successfully claimed. The State, in the exercise, of its police power, can prescribe regulations to promote the health, morals, peace, good order, safety and general welfare of the people. It can prohibit all things hurtful to comfort, safety and welfare of society. It may also regulate property rights. In the language of Chief Justice Enrique M. Fernando "the necessities imposed by public welfare may justify the exercise of governmental authority to regulate even if thereby certain groups may plausibly assert that their interests are disregarded". In so far as the non-application of the assailed Circulars to other transportation services is concerned, it need only be recalled that the equal protection clause does not imply that the same treatment be accorded all and sundry. It applies to things or persons identically or similarly situated. It permits of classification of the object or subject of the law provided classification is reasonable or based on substantial distinction, which make for real differences, and that it must apply equally to each member of the class. What is required under the equal protection clause is the uniform operation by legal means so that all persons under identical or similar circumstance would be accorded the same treatment both in privilege conferred and the liabilities imposed. The challenged Circulars satisfy the foregoing criteria.

Evident then is the conclusion that the questioned Circulars do not suffer from any constitutional infirmity. To declare a law unconstitutional, the infringement of constitutional right must be clear, categorical and undeniable. Hence, the Writs prayed for are denied and was dismissed.

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