CA upholds bus firm’s franchise cancellation

MANILA, Philippines - The Court of Appeals (CA) has upheld with finality a Land Transportation Franchising and Regulatory Board  (LTFRB) order canceling the franchise of Don Mariano Transit Corp. (DMTC) over a spate of deadly road accidents involving its buses.

In an 11-page ruling released earlier this week, the CA’s Eighth Division affirmed its July 17 decision dismissing DMTC’s petition that assailed the LTFRB order.

The ruling was written by Associate Justice Fernanda Lampas-Peralta. Associate Justice Francisco Acosta and Myra Garcia-Fernandez concurred in this ruling.

The CA dismissed the motion for reconsideration filed by the bus firm, citing its failure to raise new arguments that would warrant the reversal of the earlier ruling. 

It reiterated that the LTFRB has the power to revoke certificates of public convenience (CPCs) of public utility vehicles.

The CA also cited Section 5 of Executive Order 202, which gave LTFRB its power to impose fines and penalties for violation of existing public service laws and its issuances, including the revocation of existing CPCs.

In seeking the reversal of the CA’s ruling, DMTC insisted that the LTFRB committed grave abuse of discretion in canceling its CPCs because of its findings that the bus company allowed the illegal use or change of chassis without informing the LTFRB.  

Petitioner also claimed that it was denied due process because it was not allowed to respond to the “inaccurate” contents of the reports submitted by the various government agencies to the LTFRB.

The CA was not convinced. It held that the LTFRB also has the power to determine whether DMTC can provide the riding public with safe, adequate and proper transportation.

Records show that on Dec. 13, 2013, a DMTC bus figured in a road accident along the Skyway in Alabang that killed 21 passengers and injured 24 others.

In May 2012, a call center agent was stabbed in a DMTC bus, with the bus driver and conductor not helping the victim. 

Two months later, another DMTC bus figured in an accident along the EDSA-Ortigas flyover resulting in multiple physical injuries and damage to property.

In August 2012, a DMTC bus was involved in a road mishap resulting in the death of a motorcycle driver.

These incidents involving DMTC buses prompted the LTFRB to revoke the bus firm’s CPCs.