FRANCISCO VS.

TOLL REGULATORY BOARD (TRB)

G.R. Nos. 166910, 169917, 173630, 183599
Facts:
- 3 special civil actions filed seeking to nullify statutes and presidential actions relating to toll operation
contracts and to prohibit allegedly illegal toll fee hike and 1 petition for review to annul Pasig RTC
decision allowing the collection of toll fees in SLEX.
- History:
o PD1112 (Marcos) authorize collection of toll fees and created TRB to grant entities authority to
operate a toll facility thru issuance of Toll Operation Certificate (TOC)
o PD1113 granted a franchise to Phil. Natnl Construction Corp. (PNCC) from May 1977 to May
2007 to operate toll facility in NLEX and SLEX
o TRB and PNCC signed a TOA detailing terms and conditions
o PD1894 granted franchise to PNCC for Metro Manila Expressway (MMEX) for 30 years
o PNCC wanted to enter into a joint venture agreement (JVA) with private entities to obtain
financing for expansion; this was affirmed by Sec. of Justice
o Under a Memo of Understanding (MOU), PNCC will enter into JVA and new JV company formed
for expansion and rehab of toll road projects
South Metro Manila Skyway (SMMS) to be operated by Citra MM Tollways Corp.
NLEX to be operated by Manila North Tollways Corp. (MNTC)
SLEX to be operated by South Luzon Tollway Corp (SLTC) and Manila Toll
Expressway Systems (MATES)
- 166910
o Franciso and Hizon, as taxpayers, seek to nullify STOAs since unconstitutional for the following
reasons:
Tollways impose exorbitant fees to public depriving them of property w/o due process
TRB cannot award TOA and be regulator of tollway industry at the same time
President does not have power to approve transfer/assignment of usufruct by tollway
operator to 3rd parties since it is an exercise of legislative power
o SLEX granted by TRB the increase in rates; petitioners asked for TRO
- 166917 House of Rep members questioning presidents power to approve assignment of usufruct
- 173630 Govt agencies and NGOs claimed that TRB applied provisions of BOT Law (RA 6957) and
RA 9184 requiring public bidding
- 183599 YPES filed with RTC Pasig special civil action to nullify the TOC extending the franchise of
SLEX which expired in May 2007; RTC sided with YPES and ordered the annulment of extension
Issues:
1. W/N an actual case or controversy exists and whether petitioners in the first three petitions have locus
standi;
2. Whether TRB is vested with the power and authority to grant what amounts to a franchise over tollway
facilities;
3. Whether TRB can enter into Toll Operation Agreement (TOA) and promulgate toll rates and rule on
petitions for toll rate adjustments;
4. Whether Supplemental TOA (STOA) are valid;
Ruling:
1. Rule of standing is a matter of procedural technicality which may be relaxed when the subject or legal
question to be resolved is of transcendental importance of public
a. House of Rep members (166917) have locus standi since they question acts of the executive
branch they perceive to injure the Congress
b. Francisco, Hizon and other associations as taxpayers or mere users of tollways not have
locus standi

2. TRB is given extraordinary powers pursuant to its statutory authority under PD1112, by way of STOAs,
it allowed PNCC to enter into JVAs; Administrative agencies like TRB vested by law with the power to
grant franchise when necessary and for public benefit can validly enter into toll concessions
3. An administrative agency exercising its administrative or executive functions (such as the granting of
franchises or awarding of contracts) and at the same time exercising its quasi-legislative (e.g., rulemaking) and/or quasi-judicial functions (e.g., rate-fixing), does not support a finding of a violation of due
process or the Constitution. Hence, TRB can act as a fair and objective tribunal on matters of toll fee
fixing
4. Validity
a. 166910 and 173630
i. STOAs for NLEX, SLEX and SMMS are valid
ii. However, Clause 11.7 (extension of concession period) of the MNTC STOA and Clause
8.08(2)and(3) of the MATES SOTA are void and unconstitutional
b. 166917
i. Presidents approval for assignment of usufructuary; JVA and the provisional toll rate
increases are valid
c. 183599
i. SC sided with SLEX RTC decision annulling SLEX TOC is reversed
Judicial Review Principle:

Court may refuse judicial review unless constitutional question is brought by a party who has locus
standi, viz:
o has suffered some actual or threatened injury as a result of the allegedly illegal conduct of the
government;
o injury traceable to challenged action;
o injury likely to be redressed by favorable action

However, locus standi may be set aside when the subject or legal question to be resolved is of
transcendental importance of public and the paramount public interest is involved