On May 27, 1963, Antonio de Pio filed with the Public Service Commission in Manila an application for authority to operate 25 taxicabs in the Island of Cebu. Thereafter, the Public Service Commission on July 31, 1963 issued a notice of hearing of the application scheduled on October 1, 1963. It required that all affected operators to file their oppositions to the application of Antonio de Pio.
The taxicab operators of Cebu led by Eugenio Galvez, Emigdio Mercado and the Cebu Yellow Taxi (Manila Yellow Taxicab Co. Inc. and Cebu Checkered Cab Co., Inc.) filed their opposition.
Mrs. Felicitas C. Tan filed her opposition through registered mail in Cebu to the Public Service Commission on September 30, 1963. Before it was received by the PSC, on October 4, 1963 the latter issued an order commissioning the Municipal Judge of Cebu City to receive the evidence of the parties, the application and opposition.
Since Mrs. Tan's opposition was not yet received, she was not included in the list of the oppositors of the application of De Pio. In the first hearing in Cebu City on November 4, 1963 Mrs. Tan was not able to attend. In the course of the hearings on November 7,15 and 18, 1963 applicant De Pio introduced documentary and testimonial evidence in support of his application.
The decision of the Public Service Commission granting the application was based on its finding that the applicant, Antonio de Pio has an assets worth about P360,000 plus a yearly income of about P15,000 and P45,000 ready cash available for immediate investment. De Pio also has a repair shop ready for use, he has had experience as a common carrier operator, that the Delta Motors Corporation, the distributor of Toyopet cars in the Philippines has agreed to provide him with the taxicabs. However the Public Service Commission, instead of granting the applied 25 units, it granted 15 taxicabs to operate.
The Public Service Commission convinced of the public necessity for the taxicab service applied granted the application on December 4, 1963. Mrs. Felicitas Tan not happy with the decision filed a petition for review with the Supreme Court on January 6, 1964.
The Supreme Court on March 18, 1967 in a decision written by Chief Justice Concepcion denied the petition of Mrs. Felicitas Tan and the other Cebu Taxicab operators.
The reason for the denial was that the oppositors had not asked the Public Service Commission for a reconsideration or a new trial to present her evidence (referring to Mrs. Tan). The Supreme Court said that there is no evidence to show that Mrs. Tan suffered any substantial injury. It further said that the oppositors cannot even claim a denial of due process.
On the question that the applicant has only two witnesses while the oppositors have six hence the Public Service Commission should give more weight to their opposition. The Supreme Court said that yardstick in weighing the evidence is not the quantity of the witnesses but the quality of their statements. The oppositors raised the issue that there are many vacant taxicabs roaming, thus there is no need for additional units. The argument was said to be inconclusive.