The Supreme Court has denied the Petition for Review on Certiorari filed by the City of Koronadal and ruled that the city cannot block, reroute, or require Yellow Bus Lines, Inc. to use the City of Koronadal Integrated Transport Terminal Complex (CKITTC). The Court affirmed the Court of Appeals (CA) and upheld the grant of the Complaint for Injunction filed by Yellow Bus.
The Case
On March 30, 2004, the City of Koronadal became the Administrative Seat of Region XII by virtue of Executive Order No. 304, series of 2004, directing all departments, bureaus, and offices of the national government to transfer their regional seat of operations to Koronadal City.
On July 2, 2008, the Regional Development Council No. XII issued Resolution No. 36, Series of 2008, approving the Developmental Framework Plan of Koronadal City. The Sangguniang Panlungsod of Koronadal City approved Ordinance No. 9, which created the CKITTC to provide efficient transportation facilities, reduce traffic congestion and pollution, raise revenues, and promote general welfare. The City Transport Terminal Regulatory Board (CTTRB) was created, with the City Mayor as Chair and the City Treasurer among its members. The Ordinance was published on October 1, 2018 and took effect 15 days later.
Yellow Bus, a duly franchised common carrier in the land transportation business, has its own private terminal along the national highway of Koronadal City. When the Ordinance was implemented on October 16, 2018, three checkpoints were set up on the national highway, manned by traffic aides, security unit personnel, and tax enforcers. All Yellow Bus buses traveling along their franchised routes were blocked at the checkpoints and rerouted to the CKITTC, where they were required to pay a terminal fee of PHP 70.00 for each entry.
Yellow Bus filed a complaint for injunction, arguing that the implementation of the Ordinance violated its right to use its own private terminal, which was duly accredited by the Land Transportation Franchising and Regulatory Board (LTFRB), with its latest accreditation issued on September 5, 2018. Koronadal City countered that as the region's administrative seat, it is required to establish a centralized transport terminal, and that the Ordinance was enacted in the exercise of its police power and power to tax and raise revenues.
The Issue
The case turned on whether the Ordinance required all public utility vehicles (PUVs), including Yellow Bus, to use the CKITTC, and whether Koronadal City could lawfully block and reroute Yellow Bus's buses and charge them terminal fees.
The Ruling
The Court found there was no prohibition against the use of private terminals under the Ordinance. It noted that Section 4 lists the relevant actors and stakeholders but does not categorically require all PUVs to utilize the CKITTC or prevent the use of existing private terminals. Section 11 only mandates that PUVs "utilizing the services of the terminal facilities pay the corresponding fees," but does not require all PUVs operating within the city to avail such terminal services.
The Court held: "Since there was no prohibition against the use of private terminals under the Ordinance, petitioners have no basis to block and order the rerouting of the buses of respondent to the CKITTC."
The dispositive portion states: "ACCORDINGLY, Petition for Review on Certiorari is DENIED. The March 16, 2022 Decision and the November 15, 2022 Resolution of the Court of Appeals in CA-G.R. SP No. 09771-MIN are AFFIRMED. The Complaint for Injunction filed by respondent Yellow Bus Lines is GRANTED. A Writ of Injunction is issued enjoining petitioners City of Koronadal, the City Mayor, the City Treasurer, and the members of the City Transport Terminal Regulatory Board from blocking and rerouting the buses of Yellow Bus Lines and requiring it to use the City of Koronadal Integrated Transport Terminal Complex."
By the Numbers
- March 30, 2004 — Koronadal became Administrative Seat of Region XII via EO No. 304
- October 1, 2018 — Ordinance published; took effect 15 days later
- October 16, 2018 — Ordinance implemented; three checkpoints set up
- September 5, 2018 — date of Yellow Bus's latest LTFRB accreditation
- PHP 70.00 — terminal fee per entry for a bus
- PHP 1,003,660.00 — total terminal fees Yellow Bus claimed to have paid
- 20 to 25 minutes — additional travel time along diversion routes
- Dispatching interval rose from 5–10 minutes to 40–45 minutes
The Court's Reasoning
The Court explained that Section 19, in relation to Section 24, imposes a penalty for loading and unloading in non-specified areas, but these areas are not defined in the Ordinance and could refer to areas inside the CKITTC not designated for loading and unloading, rather than terminals other than the CKITTC. Because the Ordinance did not prohibit the use of private terminals, the second element for the issuance of an injunction was present — the acts sought to be enjoined were violative of Yellow Bus's right to use its property.
The Court stated that "preventing respondent from using its private terminals and charging it for the use of the CKITTC are outright oppressive and confiscatory," and constitute a violation of property rights that cannot be allowed under the guise of the general welfare clause. Citing City of Manila v. Laguio, the Court reiterated that "[t]he police power granted to local government units must always be exercised with utmost observance of the rights of the people to due process and equal protection of the law."
Source: City of Koronadal v. Yellow Bus Lines, Inc., G.R. No. 265769, En Banc, decision penned by Associate Justice Jhosep Y. Lopez.
This report summarizes a public Supreme Court decision and is not legal advice.