Lucena Grand Central Terminal Inc. v. JAC Liner Inc.

ADMIN LAW GENERAL POWERS AND ATTRIBUTES OF LGUS: CLOSURE AND OPENING OF ROADS
Title: Lucena Grand Central Terminal Inc. v. JAC Liner Inc. G.R. No. 148339
Date: February 23, 2005
Ponente: Carpio Morales, J.
LUCENA GRAND CENTRAL TERMINAL, INC., JAC LINER, INC.,
petitioner respondent
FACTS
 Respondent JAC Liner, Inc., a common carrier operating buses which ply various routes to and from Lucena City,
assailed City Ordinance Nos. 1631 and 1778 as unconstitutional on the ground that these constituted an invalid
exercise of police power, an undue taking of private property, and a violation of the constitutional prohibition against
monopolies.
 Ordinance No. 1631 - An Ordinance Granting The Lucena Grand Central Terminal, Inc., A Franchise To Construct,
Finance, Establish, Operate And Maintain A Common Bus-Jeepney Terminal Facility In The City Of Lucena
 Ordinance No. 1778 - An Ordinance Regulating The Entrance To The City Of Lucena Of All Buses, Mini-Buses And Out-
Of-Town Passenger Jeepneys And For This Purpose, Amending Ordinace No. 1420, Series Of 1993, And Ordinance No.
1557, Series Of 1995
 The above-mentioned ordinances, by granting an exclusive franchise for twenty five years, renewable for another
twenty five years, to Lucena Grand Central Terminal, Inc., its successors or assigns, for the construction and operation
of one common bus and jeepney terminal facility in Lucena City, to be located outside the city proper, were professedly
aimed towards alleviating the traffic congestion alleged to have been caused by the existence of various bus and
jeepney terminals within the city.
 Further, the subject ordinances prohibit the operation of all bus and jeepney terminals within Lucena, including those
already existing, and allow the operation of only one common terminal located outside the city proper, the franchise
for which was granted to petitioner. The common carriers plying routes to and from Lucena City are thus compelled
to close down their existing terminals and use the facilities of petitioner.
 Respondent, who had maintained a terminal within the city, was one of those affected by the ordinances.
 The petitioner via petition for review, sought the wisdom of Supreme Court, assailing the Decision and Resolution of
the Court of Appeals.
ISSUE/S
Whether or not the City of Lucena properly exercised its police power when it enacted City Ordinance Nos. 1631 and 1778.
ORDINANCE NO. 1631 IS VALID; ORDINANCE NO. 1778 IS NULL AND VOID
RATIO
 As with the State, the local government may be considered as having properly exercised its police power only if the
following requisites are met: (1) the interests of the public generally, as distinguished from those of a particular class,
require the interference of the State, and (2) the means employed are reasonably necessary for the attainment of the
object sought to be accomplished and not unduly oppressive upon individuals. Otherwise stated, there must be a
concurrence of a lawful subject and lawful method.
 With the aim of localizing the source of traffic congestion in the city to a single location, the subject ordinances prohibit
the operation of all bus and jeepney terminals within Lucena, including those already existing, and allow the operation
of only one common terminal located outside the city proper, the franchise for which was granted to Lucena. The
common carriers plying routes to and from Lucena City are thus compelled to close down their existing terminals and
use the facilities of Lucena.
 The questioned ordinances having been enacted with the objective of relieving traffic congestion in the City of Lucena,
involve public interest warranting the interference of the State. The first requisite for the proper exercise of police
power is thus present.
 The ordinances assailed herein are characterized by overbreadth. They go beyond what is reasonably necessary to
solve the traffic problem. Additionally, since the compulsory use of the terminal operated by petitioner would subject
the users thereof to fees, rentals and charges, such measure is unduly oppressive, as correctly found by the appellate
court. What should have been done was to determine exactly where the problem lies and then to stop it right there.
Such measure is unduly oppressive, as correctly found by the appellate court.
 From the memorandum filed before the Court by Lucena, it is gathered that the Sangguniang Panlungsod had
identified the cause of traffic congestion to be the indiscriminate loading and unloading of passengers by buses on the
streets of the city proper, hence, the conclusion that the terminals contributed to the proliferation of buses
obstructing traffic on the city streets. Bus terminals per se do not, however, impede or help impede the flow of traffic.
How the outright proscription against the existence of all terminals, apart from that franchised to petitioner, can be
considered as reasonably necessary to solve the traffic problem, this Court has not been enlightened.
 If terminals lack adequate space such that bus drivers are compelled to load and unload passengers on the streets
instead of inside the terminals, then reasonable specifications for the size of terminals could be instituted, with permits
to operate the same denied those which are unable to meet the specifications. In the subject ordinances, however,
the scope of the proscription against the maintenance of terminals is so broad that even entities which might be able
to provide facilities better than the franchised terminal are barred from operating at all.
 The Court is not unaware of the resolutions of various barangays in Lucena City supporting the establishment of a
common terminal, and similar expressions of support from the private sector, copies of which were submitted to this
Court by Lucena Grand Central Terminal, Inc. The weight of popular opinion, however, must be balanced with that of
an individual‘s rights.
 The true role of Constitutional Law is to effect an equilibrium between authority and liberty so that rights are exercised
within the framework of the law and the laws are enacted with due deference to rights. A due deference to the rights
of the individual thus requires a more careful formulation of solutions to societal problems.
 As for petitioner’s claim that the challenged ordinances have actually been proven effective in easing traffic
congestion: Whether an ordinance is effective is an issue different from whether it is reasonably necessary. It is its
reasonableness, not its effectiveness, which bears upon its constitutionality. If the constitutionality of a law were
measured by its effectiveness, then even tyrannical laws may be justified whenever they happen to be effective.
 Hence, Ordinance No. 1631 is valid, having been issued in the exercise of the police power of the City Government of
Lucena insofar as the grant of franchise to the Lucena Grand Central Terminal, Inc., to construct, finance, establish,
operate and maintain common bus-jeepney terminal facility in the City of Lucena.
 Sec. 4(c) of Ordinance No. 1631 is illegal and ultra vires because it contravenes the provisions of Republic Act No.
7160, otherwise known as “The Local Government Code”.
 City Ordinance No. 1778 is null and void, the same being also an ultra vires act of the City Government of Lucena
arising from an invalid, oppressive and unreasonable exercise of the police power.
RULING
WHEREFORE, the petition is hereby DENIED.
(SANTOS, 2B 2017-2018)

Lucena Grand Central Terminal Inc. v. JAC Liner Inc.

Uploaded by

Copyright:

Available Formats

Lucena Grand Central Terminal Inc. v. JAC Liner Inc.

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lucena Grand Central Terminal Inc. v. JAC Liner Inc.

Uploaded by

Copyright:

Available Formats

ADMIN LAW GENERAL POWERS AND ATTRIBUTES OF LGUS: CLOSURE AND OPENING OF ROADS

You might also like