G.R. Nos. L-12306-7 – 113 Phil. 459 – Mercantile Law – Transportation Laws – Certificate of Public Convenience – Requirement for Financial Stability of Franchise Operators
In 1955, Rosa Fariñas filed an application for the registration of 5 passenger trucks. This is in addition to the 4 other trucks already in operation plying the route of Laoag to Manila, among other routes.
Her application was opposed by the estate of Florencio Buan (owners of the Philippine Rabbit). The estate alleged that Fariñas already abandoned her right to operate the said transportation line. It was alleged that in 1948, Fariñas was authorized by the government to register 11 buses/trucks until 1952, but she only registered 4 trucks in operation.
In her defense, Fariñas said that several misfortunes and accidents prevented her from complying with the conditions of her franchise. She said that one of the accidents included the death of her granddaughter and all those misfortunes made her confused and she temporarily lost her business track. She claims she does have the money to repair her buses and for the additional buses.
ISSUE: Whether or not Fariñas should be allowed to register five additional buses/trucks.
HELD: No. The Supreme Court did not consider the successive accidents and misfortune mentioned by Fariñas, to be sufficient grounds to excuse her from completing her units. It would appear that she lost her financial stability. The requirement of financial stability of all applicants for certificates of public convenience, is a guaranty that at all times applicant should be in a position to cope with the obligations and responsibilities of the service, the maintenance of a complete number of units, as authorized, inclusive.
