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    Tawang Multi-Purpose Cooperative VS La Trinidad Water District

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    Gab Estiada
    This case involves a dispute between Tawang Multi-Purpose Cooperative (TMPC) and La Trinidad Water District (LTWD) over TMPC's application for a certificate of public convenience to operate a waterworks system. LTWD opposed the application, arguing it had an exclusive franchise to provide water services under Presidential Decree 198. The Supreme Court ruled Presidential Decree 198 was unconstitutional to the extent it granted LTWD an exclusive franchise, as the Constitution prohibits exclusive franchises. The Court set aside the lower court's decision in favor of LTWD and granted TMPC's petition.

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    Tawang Multi-Purpose Cooperative VS La Trinidad Water District

    Uploaded by

    Gab Estiada
    70 views2 pages
    This case involves a dispute between Tawang Multi-Purpose Cooperative (TMPC) and La Trinidad Water District (LTWD) over TMPC's application for a certificate of public convenience to operate a waterworks system. LTWD opposed the application, arguing it had an exclusive franchise to provide water services under Presidential Decree 198. The Supreme Court ruled Presidential Decree 198 was unconstitutional to the extent it granted LTWD an exclusive franchise, as the Constitution prohibits exclusive franchises. The Court set aside the lower court's decision in favor of LTWD and granted TMPC's petition.

    Original Title

    20. TAWANG MULTI-PURPOSE COOPERATIVE VS LA TRINIDAD WATER DISTRICT

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    This case involves a dispute between Tawang Multi-Purpose Cooperative (TMPC) and La Trinidad Water District (LTWD) over TMPC's application for a certificate of public convenience to operate a waterworks system. LTWD opposed the application, arguing it had an exclusive franchise to provide water services under Presidential Decree 198. The Supreme Court ruled Presidential Decree 198 was unconstitutional to the extent it granted LTWD an exclusive franchise, as the Constitution prohibits exclusive franchises. The Court set aside the lower court's decision in favor of LTWD and granted TMPC's petition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    70 views2 pages

    Tawang Multi-Purpose Cooperative VS La Trinidad Water District

    Uploaded by

    Gab Estiada
    This case involves a dispute between Tawang Multi-Purpose Cooperative (TMPC) and La Trinidad Water District (LTWD) over TMPC's application for a certificate of public convenience to operate a waterworks system. LTWD opposed the application, arguing it had an exclusive franchise to provide water services under Presidential Decree 198. The Supreme Court ruled Presidential Decree 198 was unconstitutional to the extent it granted LTWD an exclusive franchise, as the Constitution prohibits exclusive franchises. The Court set aside the lower court's decision in favor of LTWD and granted TMPC's petition.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    TAWANG MULTI-PURPOSE COOPERATIVE Petitioner

    v. LA TRINIDAD WATER DISTRICT, Respondent.

    G.R. No. 166471: March 22, 2011

    Facts:

    1. Tawang Multi-Purpose Cooperative (TMPC) is a cooperative, organized


    to provide domestic water services in Barangay Tawang, La Trinidad,
    Benguet. La Trinidad Water District (LTWD) is a local water utility created
    under Section 47 of Presidential Decree (PD) No. 198, as amended. It is
    authorized to supply water for domestic, industrial and commercial
    purposes within the municipality of La Trinidad, Benguet.

    2. TMPC filed with the National Water Resources Board (NWRB) an


    application for a certificate of public convenience (CPC) to operate and
    maintain a waterworks system in Barangay Tawang.

    3. LTWD opposed TMPCs application, arguing that its franchise is


    exclusive as provided under PD 198. A CPC is however granted.

    4. LTWD filed a motion for reconsideration but the same was denied by
    NWRB. LTWD then appealed to the RTC where it court set aside the
    NWRB decision. Hence, this petition.

    Issues:

    1. Whether or not the petition may be granted

    Ruling:

    Yes. RTC Decision Set Aside.

    No franchise, certificate, or any other form of authorization for the operation


    of a public utility shall be granted except to citizens of the Philippines or to
    corporations or associations organized under the laws of the Philippines, at
    least sixty per centum of whose capital is owned by such citizens,nor shall
    such franchise, certificate or authorizationbe exclusive in characteror for a
    longer period than fifty years.
    Plain words do not require explanation. The 1935, 1973 and 1987
    Constitutions are clear franchises for the operation of a public utility cannot
    be exclusive in character. The 1935, 1973 and 1987 Constitutions
    expressly and clearly state that,"nor shall such franchise x x x be exclusive
    in character."There is no exception.

    When the law is clear, there is nothing for the courts to do but to apply it.
    The duty of the Court is to apply the law the way it is worded. What cannot
    be legally done directly cannot be done indirectly. This rule is basic and, to
    a reasonable mind, does not need explanation. Indeed, if acts that cannot
    be legally done directly can be done indirectly, then all laws would be
    illusory.

    Indeed, the President, Congress and the Court cannot create directly
    franchises that are exclusive in character. What the President, Congress
    and the Court cannot legally do directly they cannot do indirectly. Thus, the
    President, Congress and the Court cannot create indirectly.

    In PD No. 198, as amended, former President Ferdinand E. Marcos


    (President Marcos) created indirectly franchises that are exclusive in
    character by allowing the BOD of LTWD and the LWUA to create directly
    franchises that are exclusive in character.

    In case of conflict between the Constitution and a statute, the Constitution


    always prevails because the Constitution is the basic law to which all other
    laws must conform to. The duty of the Court is to uphold the Constitution
    and to declare void all laws that do not conform to it.

    Petition Granted. Section 47 of PD 198 is UNCONSTITUTIONAL.

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