Luque vs.

Villegas
Facts:
Petitioners (who are passengers from Cavite and Batangas who ride on buses to and from their
province and Manila) and some public service operators of buses and jeeps assail the validity of
Ordinance 4986 and Administrative Order 1.
Ordinance 4986 states that PUB and PUJs shall be allowed to enter Manila only from 6:30am to
8:30pm every day except Sundays and holidays.
Petitioners contend that since they possess a valid CPC, they have already acquired a vested right
to operate.
Administrative Order 1 issued by Commissioner of Public Service states that all jeeps authorized to
operate from Manila to any point in Luzon, beyond the perimeter of Greater Manila, shall carry the
words "For Provincial Operation".
Issue:
1. Whether or not the said regulations are valid.
2. Whether or not Ordinance 4986 destroys vested rights to operate in Manila.
Held:
1. YES! Using the doctrine in Lagman vs. City of Manila, Petitioner's Certificate of Public
Convenience was issued subject to the condition that operators shall observe and comply with all
the rules and regulations of the PSC relative to PUB service.
The purpose of the ban is to minimize the problem in Manila and the traffic congestion, delays and
accidents resulting from the free entry into the streets of Manila and the operation around said
streets.
Both Ordinance 4986 and AO 1 fit into the concept of promotion and regulation of general welfare.
2. NO! A vested right is some right or interest in the property which has become fixed and
established and is no longer open to doubt or controversy. As far as the State is concerned, a CPC
constitutes neither a franchise nor a contract, confers no property right, and is a mere license or
privilege.
The holder does not acquire a property right in the route covered, nor does it confer upon the
holder any proprietary right/interest/franchise in the public highways.
Neither do bus passengers have a vested right to be transported directly to Manila. The alleged
right is dependent upon the manner public services are allowed to operate within a given area. It is
no argument that the passengers enjoyed the privilege of having been continuously transported
even before outbreak of war. Times have changed and vehicles have increased. Traffic congestion
has moved from worse to critical. Hence, there is a need to regulate the operation of public
services.