Professional Documents
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Case Digests by Date Cortez
Case Digests by Date Cortez
BOT
117 SCRA 597
Facts: Petitioner Taxicab Operators seek to declare the nullity on Memorandum Circular No. 77-42 of the Board of Transportation.
Herein petitioner is a domestic corporation compound of taxicab operators, who are grantees of Certificate of Public Convenience
to operate taxicabs within the City of Manila and to any other place in Luzon accessible to vehicular traffic. The Memorandum
issued by BOT ordered the phasing out and replacement of old and dilapidated taxis. Now, pursuant to this policy, the Board
promulgated a regulation in the effect that no car beyond six years shall be operated as a taxi. Petitioners contend that
procedural due process was violated because position papers were not asked of them and because there was no public hearing
prior to the issuance of the regulation.
Issue: Whether procedural due process was violated in the case at bar.
Held: No, there was no violation of petitioners constitutional right to due process. The Board has a valid range of choices for
gathering information or data and is not bound to make use all of them. Moreover, previous notice and hearing so required in
judicial and quasi-judicial proceedings but not in the promulgation of general rule.
Respondent contends that Ordinance No. 7065 authorized the Mayor to allow ADC to operate Jai-Alai in the City of Manila. ADC
also assails the constitutionality of PD No. 771 as violative of the equal protection and non-impairment clauses of the Constitution.
Issue: Whether ADC has a valid franchise to operate the Jai-Alai de Manila.
Held: PD No. 771 is a valid exercise of the inherent police power of the State. Gambling is essentially antagonistic and selfreliance. It breeds indolence and erodes the value of good, honest and hard work. It is, as very aptly stated by PD No. 771, a vice
and a social ill which government must minimize (if not eradicate) in pursuit of social and economic development. Jai-alai is not a
mere economic activity which the law seeks to regulate. It is essentially gambling and whether it should be permitted and, if so,
under what conditions are questions primarily for the lawmaking authority to determine, talking into account national and local
interests. Here, it is the police power of the State that is paramount. On the alleged violation of the non-impairment and equal
protection clauses of the Constitution, it should be remembered that a franchise is not in the strict sense a simple contract but
rather it is more importantly, a mere privilege specially in matters which are within the government's power to regulate and even
prohibit through the exercise of the police power. Thus, a gambling franchise is always subject to the exercise of police power for
the public welfare.
ADC has no franchise from Congress to operate the jai-alai therefore, it may not operate even if it has a license from the Mayor to
operate the jai-alai in the City of Manila.