G.R. No.

L-19857 March 2, 1923

THE ILOILO ICE AND COLD STORAGE COMPANY, petitioner,vs.PUBLIC UTILITY

BOARD, respondent.

MALCOLM, J.:

Doctrine:
"public utility" includes every individual, co-partnership, association, corporation, or joint
stock company that now or hereafter may own, operate, manage, or control, within the
Philippine Islands, any ice, refrigeration, cold storage system, plant, or equipment, for public
use. Particular attention is invited to the last phrase, "for public use." The criterion by which
to judge of the character of the use is whether the public may enjoy it by right or only by
permission. The essential feature of a public use is that it is not confined to privileged
individuals, but is open to the indefinite public.
Facts:
Francisco Villanueva, Jr., the secretary of the Public Utility Commission, investigated ice
plants in Iloilo in November 1921. He recommended that the Iloilo Ice and Cold Storage
Company be classified as a public utility. The Public Utility Commissioner issued an order on
December 19, 1921, directing the company to explain why it shouldn't be considered a
public utility. John Bordman, the company's treasurer, argued it operated as a private
enterprise.
After a hearing, the Public Utility Commissioner ruled the company was a public utility,
requiring it to submit its ice charges. The company appealed, claiming it operated privately.
Established in 1908, the company has been the main ice supplier in Iloilo since competitors
ceased operations. It primarily serves selected customers through written contracts and
does not openly advertise ice sales.
Issues: whether or not the Iloilo Ice and Cold Storage Company is a public utility?
Ruling:
No, Iloilo Ice and Cold Storage Company is not a public utility.
The petitioner argues that they operate a small ice plant in Iloilo, catering only to selected
customers and never offering services to the general public. They contend that previous
legal decisions support their stance. The government agrees on the facts but argues against
allowing special contracts, fearing it could circumvent the law.
section 14 of Act No. 2307 states that "public utility," includes every individual,
copartnership, association, corporation, or joint stock company that now or hereafter may
own, operate, manage, or control, within the Philippine Islands, any ice, refrigeration, cold
storage system, plant, or equipment, for public use.
The court determines that for an entity to be considered a public utility, its services must be
available to the public without discrimination. As the Iloilo Ice and Storage Company
operates primarily through private contracts and has no intention of becoming a public
utility, it cannot be classified as such without violating constitutional due process.
The Court concludes that, based on the presented facts and legal precedents, the company
does not meet the criteria of a public utility.

BALLENA, REGGIE Jr., E