KILUSANG MAYO UNO LABOR CENTER, petitioner,

vs.
HON. JESUS B. GARCIA, JR., the LAND TRANSPORTATION FRANCHISING AND
REGULATORY BOARD, and the PROVINCIAL BUS OPERATORS ASSOCIATION OF THE
PHILIPPINES, respondents.

FACTS:
In 1990, DOTC Sec. Oscar Orbos issued Memo Circular to LTFRB Chair Remedios
Fernando to allow provincial bus to change passenger rates w/in a fare range of 15% above or
below the LTFRB official rate for a 1yr. period. This is in line with the liberalization of
regulation in the transport sector which the government intends to implement and to make
progress towards greater reliance on free market forces.
Fernando respectfully called attention of DOTC Sec. that the Public Service Act requires
publication and notice to concerned parties and public hearing. In Dec. 1990, Provincial Bus
Operators Assoc. of the Phils. (PBOAP) filed an application for across the board fare rate
increase, which was granted by LTFRB. In 1992, then DOTC Sec. Garcia issued a memo to
LTFRB suggesting a swift action on adoption of procedures to implement the Department Order
& to lay down deregulation policies. Pursuant to LTFRB Guideline, PBOAP, w/o benefit of
public hearing announced a 20% fare rate increase.
Petitioner Kilusang Mayo Uno (KMU) opposed the move and filed a petition before
LTFRB w/c was denied. Hence the instant petition for certiorari w/ urgent prayer for a TRO,
w/c was readily granted by the Supreme Court.
ISSUE: Whether the authority granted by LTFB to provincial buses to set a fare range above
existing authorized fare range is unconstitutional and invalid.

HELD:
The grant of power by LTFRB of its delegated authority is unconstitutional.
The doctrine of Potestas delegate non delegari (what has been delegated cannot be
delegated) is applicable because a delegated power constitutes not only a right but a duty to be
performed by the delegate thru instrumentality of his own judgment. To delegate this power is
a negation of the duty in violation of the trust reposed in the delegate mandated to discharge
such duty. Also, to give provincial buses the power to charge their fare rates will result to a
chaotic state of affairs ad this would leave the riding public at the mercy of transport operators
who can increase their rates arbitrarily whenever it pleases or when they deem it necessary.