Taxicab Operators V BOT

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Taxicab Operators v.

BOT, 119 SCRA 597 (On Lawful Subject)


FACTS: Petitioner Taxicab Operators of Metro Manila, Inc. (TOMMI) is a domestic corporation composed of taxicab
operators, who are grantees of Certificates of Public Convenience to operate taxicabs within the City of Manila and to any
other place in Luzon accessible to vehicular traffic.
On October 10, 1977, respondent Board of Transportation (BOT) issued Memorandum Circular No. 77-42 which reads:
SUBJECT: Phasing out and Replacement of Old and Dilapidated Taxis
On January 27, 1981, petitioners filed a Petition with the BOT, docketed as Case No. 80-7553, seeking to nullify MC No.
77-42 or to stop its implementation; to allow the registration and operation in 1981 and subsequent years of taxicabs of
model 1974, as well as those of earlier models which were phased-out, provided that, at the time of registration, they are
roadworthy and fit for operation.
ISSUE: Whether Memorandum Circular No. 77-42 is a valid exercise of police power.
HELD: Yes, Memorandum Circular No. 77-42 is a valid exercise of police power. The overriding consideration is the
safety and comfort of the riding public from the dangers posed by old and dilapidated taxis. 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.

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