Civil Aeronautics Board v. Phil. Air Lines, Inc. G.R. No. L-40245 April 30, 1975

Civil Aeronautics Board v. Phil. Air Lines, Inc.
G.R. No. L-40245 April 30, 1975
FACTS:
On May 12, 1970, PAL had an excess of twenty (20) passengers from Baguio to Manila who cannot be accommodated
in its regular flight. To accommodate these twenty passengers, PAL required the aircraft operating Flight 213
(Tuguegarao to Manila) to pass Baguio City on its way to Manila and pick up these passengers. Flight 213 at that time
was carrying only five (5) passengers.
The following are the additional facts established before:

(a) At the time of the above incident, no other airline served Manila and Baguio. No other airline, therefore, was
affected by the aforesaid flagstop.
(b) The expenses incurred by the PAL in operating the flagstop at Baguio City far exceeded the revenue that it
derived from the twenty passengers that it fetched at Baguio City. The flagstop, therefore, was motivated not
by profit but solely by PAL's desire to meet a public need for additional service between Baguio and Manila on
that date.
(c) No one, except perhaps the Chairman of the CAB, filed any formal complaint with the C.A.B.
Claiming that PAL should have first obtained the permission of the CAB before operating the flagstop and that such
failure is a violation of Republic Act No. 776, the CAB imposed a fine of P5,000.00 upon PAL in a resolution.
PAL contended that "there is simply nothing in Republic Act No. 776 in general, nor in Section 42(k) thereof in
particular, which expressly empowers this Honorable Board (CAB) to impose a fine and order its payment in the
manner pursued in this case and under CAB Resolution No. 109(70)". It is argued that "the power and authority to
impose fines and penalties is a judicial function exercised through the regular courts of justice, and that such power
and authority cannot be delegated to the Civil Aeronautics Board by mere implication or interpretation".
ISSUE: WON The CAB possesses the necessary legal authority to impose fines – YES
RATIO:
Under RA 776 (The Civil Aeronautics Act of the Philippines), the CAB has the power to "review, revise, reverse, modify
or affirm on appeal any administrative decision or order" of the Civil Aeronautics Administrator on matters
pertaining to "imposition of civil penalty or fine in connection with the violation of any provision of this Act or rules
and regulations issued thereunder." It has the power also "either on its own initiative or upon review on appeal from
an order or decision of the Civil Aeronautics Administrator, to determine whether to impose, remit, mitigate,
increase, or compromise, such fine and civil penalties, as the case may be." (Sec. 10(F) (G) Republic Act 776). The
power to impose fines and/or civil penalties and make compromise in respect thereto is expressly given to the Civil
Aeronautics Administrator (Sec. 32(17) Republic Act 776).
There is no doubt that the fine imposed on appellant PAL in CAB resolution 109(70) and 132(70) is that fine or civil
penalty contemplated and mentioned in the foregoing provisions of Republic Act 776 and not a fine in the nature of
criminal penalty as contemplated in the Revised Penal Code, because the "fine" in this case was imposed by the
C.A.B. because of appellant PAL's violation of C.A.B. rules on flagstops without previous authority on "May 12, 1970
and on previous occasions", said C.A.B. explaining clearly in its resolution No. 132(70) that the "imposition of the
fine is not so much on exacting penalty for the violation committed as the need to stress upon the air carriers to
desist from wanton disregard of existing rules, regulations or requirements of the government regulating agency..."
In other words, it is an administrative penalty which administrative officers are empowered to impose without
criminal prosecution.
It appears, however, that the PAL committed the violation of the C.A.B. regulation against flagstops without malice
and with no deliberate intent to flout the same. For this reason, the penalty imposed by the C.A.B. may be mitigated
and reduced to a nominal sum.
DISPOSITIVE: WHEREFORE, the resolution appealed from is modified by reducing the administrative fine imposed
on the appellant PAL to ONE HUNDRED PESOS (P100.00).

Civil Aeronautics Board v. Phil. Air Lines, Inc. G.R. No. L-40245 April 30, 1975

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Civil Aeronautics Board v. Phil. Air Lines, Inc.

G.R. No. L-40245 April 30, 1975

The following are the additional facts established before:

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