2011 Revised Rules of Practice and Procedure before the Land Transportation Franchising and Regulatory Board

September 1, 2011

2011 REVISED RULES OF PRACTICE AND PROCEDURE BEFORE THE LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD

The Land Transportation Franchising and Regulatory Board under the Department of Transportation and Communications hereby adopts and promulgates the following 2011 Revised Rules of Practice and Procedure, pursuant to Executive Order No. 202 and Commonwealth Act No. 146, otherwise known as the Public Service Act, as amended,

PART I

General Provisions

RULE 1

Title and Construction

SECTION 1. Title. — These Rules shall be known and cited as the 2011 Revised Rules of Practice and Procedure before the Land Transportation Franchising and Regulatory Board (LTFRB) of the Department of Transportation and Communications.

SECTION 2. Scope and Applicability. — These Rules shall govern pleadings, practice and procedure before the Board in all matters of hearing, investigation and proceedings within its jurisdiction. However, to best serve public interest and subject to the Due Process Clause, the Board may, in any particular matter, exempt itself from these Rules and apply such fair and reasonable procedures to assist the parties in obtaining a speedy and judicious disposition of cases.

These Rules shall likewise govern all cases filed before the Regional Franchising and Regulatory Offices within their respective jurisdiction as far as practicable and when public interest so requires.

The Rules of Court shall apply suppletorily. AaEDcS

SECTION 3. Construction. — These Rules shall be liberally construed to protect and promote public interest and to assist the parties in obtaining just, speedy and inexpensive determination of every action or proceeding.

SECTION 4. Definition of Terms. — The following terms:

a) "Act" shall refer to Commonwealth Act No. 146, otherwise known as the Public Service Act, as amended.

b) "Board" shall refer to the Land Transportation Franchising and Regulatory Board (LTFRB).

c) "Board en Banc" shall refer to the composite members of the Board exercising its rule-making power and/or quasi-judicial function sitting as a whole in hearing and/or in deciding of cases. However, any two (2) of the composite members shall constitute a quorum.

d) "Central Office" shall refer to where the composite members of the Board hold office.

e) "Chairman" shall refer to the Chairman of said Board.

f) "CPC" shall refer to Certificate of Public Convenience.

g) "Decision" shall refer to any ruling, rendered by the Board en banc or the Regional Director, regarding the issuance of CPC.

h) "Department" shall refer to the Department of Transportation and Communications.

i) "EO" shall refer to Executive Order No. 202.

j) "Hearing Officer" shall refer to any lawyer employed with the LTFRB, or the Regional Director, or any LTFRB personnel duly designated to hear cases by the Chairman.

k) "Member" shall refer to any composite member of the Board.

l) "Order" shall refer to any ruling, rendered by the Board en banc or by the Regional Director, that determines incidental matters which do not touch on the merits of the cases or put an end to the proceedings.

m) "Regional Director" shall refer to the head of the Regional Office.

n) "Regional Office" shall refer to the Regional Franchising and Regulatory Office created pursuant to EO 202.

o) "Resolution" shall refer to any ruling, rendered by the Board en banc or the Regional Director, regarding any changes in the CPC granted.

p) "Rules" shall refer to the 2011 Revised Rules of Practice and Procedure of the LTFRB.

q) "Secretary" shall refer to the Secretary of the Department.

RULE 2

Parties

SECTION 1. Applicant and Oppositor. — Any person or group of persons, natural or juridical, applying for a CPC for the operation of public land transportation utilities and services or for any form of authorization shall be called the Applicant.

Any person having a substantial interest capable of pecuniary estimation in the application and opposes the application shall be called the Oppositor.

For new and additional services, substantial interest shall mean that the oppositor shall be adversely affected by the line applied for or substantial portions thereof.

SECTION 2. For Complaints, Petitions, Motions or Other Forms of Relief: Complainant and Respondent. — Any aggrieved person, group of persons, natural or juridical, who files a complaint on matters within the jurisdiction of the Board, or who seeks remedies for violations of the terms and conditions of the CPC, or any form of authorization shall be called the Complainant.

Any person, natural or juridical, who seeks remedies to be relieved from any Decision, Resolution, Order, Regulation, Standard, or any act of the Board shall be called Petitioner or movant, as may be applicable.

Any person, natural or juridical, against whom a Complaint or Petition is filed shall be called the Respondent.

SECTION 3. Appearance by Solicitor General. — Whenever the Solicitor General appears on behalf of the public in petitions for fare adjustment with the Board, his appearance shall be considered as representative of all individuals, consumers or users who have filed their written oppositions to such application and who are not represented by counsel provided the latter does not object to such representation.

SECTION 4. Appearance by Consumer or Users. — If individual users or entities opposing the petition for fare adjustment are represented by several lawyers and the opposition is predicated on the same grounds, they shall choose not more than two among themselves, one as Lead Counsel and the other one as Collaborating Counsel, who shall be allowed by the Board to represent them for that particular hearing. EcASIC

RULE 3

Venue

SECTION 1. Where to File Applications. — All new applications for CPC for the operation of public land transportation utilities and services involving routes within a particular region shall be filed at the Regional Office concerned.

All new applications involving routes traversing two or more regions (inter-regional) shall be filed at the Central Office.

SECTION 2. Where to File Complaints. — Any aggrieved party may file a complaint for any violation of the terms and conditions of the CPC at the Regional Office where the CPC was issued or at the Central Office.

SECTION 3. Where to File Any Other Relief. — For relief not covered by the preceding section, the concerned party may file a petition before the Central Office or Regional Office which rendered the decision, resolution, order or regulations subject of the petition.

SECTION 4. Petition for Fare Adjustment. — Any petition for fare adjustment which will be made applicable nationwide shall be filed before the Central Office and shall be heard by the Board en banc.

Petition for Fare Adjustment which shall be made applicable only within a certain region may be filed at the concerned Regional Office. However, the resolution thereof should be forwarded to the Board en banc for approval.

RULE 4

Pleadings

SECTION 1. Pleadings Allowed. — The pleadings allowed by these Rules are application, complaint, petition, opposition, answer, and such other pleadings as the Board may allow.

All pleadings shall be in English or Filipino, typewritten or printed as to be sufficiently legible, double-spaced on legal size white bond paper, in five (5) copies, filed and retained with the Receiving and Assessment Section of the Technical Evaluation Division, Central Office or the Receiving Unit of the Regional Offices.

Every pleading shall contain in a methodical and logical form, a plain, concise and direct statement of the ultimate facts on which the party bases his claim or defense, as the case may be.

In cases of application for the issuance of new CPC or any petition for franchise changes, the description of the unit/s applied for shall be indicated in the said pleading. DcCIAa

The complete name of the parties and their addresses must be stated in all pleadings. Failure to state the correct and complete address shall be a ground for dismissal of the action.

SECTION 2. Verification and Certification Against Forum Shopping. — Applications for the issuance of CPC, petition for any franchise changes, complaints, oppositions and answers shall be verified or accompanied by affidavits of merit and by such documents as would reasonably tend to establish prima facie the truth of the factual allegations therein.

A pleading is verified by an affidavit stating that the person verifying has read the pleading and that the allegations of facts therein are true and of his own personal knowledge.

A pleading which contains a verification based on "information and belief," or upon "knowledge, information and belief," or lacks a proper verification shall be treated as an unsigned pleading as provided under Section 12 of this Rule.

The proponent shall certify under oath in his initiatory pleading that: (a) he has not commenced or filed any application, petition or other pleading involving the same issues in any other LTFRB Office and, to the best of his knowledge, no such other application, petition or pleading is pending therein; (b) if there is such other pending application, petition or pleading, a complete statement of the present status thereof; and (c) if he learns of the same or similar application, petition or pleading has been filed or is pending, he shall report of such fact within five (5) days therefrom to the LTFRB Office where his application, petition or pleading has been filed.

A pleading that does not have a Verification and/or Certification against Forum-Shopping shall not be accepted. The submission of a false certification or non-compliance with any of the undertakings shall likewise cause the dismissal of the case.

SECTION 3. Application. — An application is a pleading whereby one seeks authorization from the Board for the issuance of a CPC.

An application may either be considered as uncontested or contested.

The following are the grounds for the declaration of uncontested applications:

1. When there is no Opposition filed;

2. When the opposition is premised on the basis of lack of public need in case where an application filed is similar to that being opposed; IASTDE

3. When the opposition is predicated on the basis of lack of public need or in cases where the application opposed of involves a different type of transport service;

4. When the opposition is deemed a nuisance — A nuisance opposition refers to any pleading under the guise of an opposition but (a) which does not state any issue (b) one that is filed prior to the filing of any application or petition (c) one that is filed after the initial hearing of the application (d) does not refer to any particular application or petition (e) couched in general terms (f) any pleading of similar nature.

The application shall remain within the jurisdiction of the Office where it was originally filed and shall proceed ex parte with summary hearings when it is declared uncontested. However, when declared contested, the Regional Office loses its jurisdiction and elevates the case to the Board en banc for adversarial proceeding.

SECTION 4. Opposition. — Any party who contests an application must file a written opposition on or before the scheduled initial hearing of the application.

SECTION 5. Complaint. — A complaint is a concise statement of the ultimate facts constituting violations of the terms and conditions of the CPC within the power of the Board, as well as the specific relief sought. The names and addresses of the complainant/s and the respondent/s must be stated in the complaint, and whenever practicable, the date, place and time of the commission of the alleged act or omission.

SECTION 6. Petition. — A petition is a pleading whereby one seeks authorization from the Board for any franchise changes on a valid CPC.

SECTION 7. Answer. — An answer is a pleading in which the respondent sets forth the defenses upon which he relies. The respondent to whom a resolution is issued by the Board to show cause or otherwise summoned to answer, shall file an answer within ten (10) days from receipt of the resolution. The answer shall admit or deny the material allegations of facts stated in the Show Cause Order or in the complaint or petition. Whenever practicable, the respondent shall state the matters of fact and law relied upon and shall attach to his answer such documents and affidavits in support of his allegations.

The respondent may seek an affirmative relief.

SECTION 8. Amendment. — Any amendment to the pleading which consists in the modification or supplemental thereto, must comply with the requirements of this Rule. Amendments may be made as a matter right at any time before a responsive pleading has been filed, and thereafter only with leave of Board.

If a responsive pleading has already been filed, a copy of the amended pleading should be served on the oppositor or respondent. The latter may amend his opposition or answer within five (5) days from receipt of the amended pleading and thereafter only with leave of Board.

SECTION 9. Amendment to Applications. — Amendments to any applications may be made before the initial hearing, as a matter of right. In cases filed with the Central Office, any amendment after the application has been submitted for resolution may be allowed only with leave of Board.

For cases within the jurisdiction of the Regional Office, amendments after the application has been submitted for resolution may be allowed only upon filing of a motion to amend and the granting of the same has been issued.

Allowance of an amended application shall require the issuance of another notice of hearing which shall likewise be published.

In any case, the original application shall be considered as superseded and only the amended application shall be acted upon.

SECTION 10. Amendment to Conform to the Evidence. — When issues not raised in the pleadings are tried by express or implied consent of the parties, they shall be treated in all respect as if they have been raised in the pleadings. If evidence upon new issues is objected to on the ground that it is not within the issues raised in the pleadings, the Board may allow the pleading to be amended and receive such evidence when it appears that the presentation of the merits of the proceeding will be served thereby without prejudicing the public interest or the rights of the parties. The Board may grant a continuance to enable the objecting party to meet such evidence.

SECTION 11. Directed Amendments. — The Board may, at any time, on its own motion or upon motion of any party, direct a party to amend his pleading in order to state his case more fully or in a more specific manner. Such amendment shall be reduced in writing and filed within such time as may be fixed by the Board, and shall comply with the requirements of the Rule pertaining to the amended pleading insofar as appropriate.

SECTION 12. Pleadings and Exceptions Through Counsel. — All pleadings, except (a) complaints; (b) petitions for dropping with expired CPC; and (c) petitions for cancellation of CPC filed by the operator; shall be through counsel of choice. Said counsel shall file his Entry of Appearance, failure of which shall prevent him from representing any party during the hearing.

All pleadings filed by an applicant shall conform with Rule 4, Sections 1 and 2 of this Revised Rules of Practice and Procedures. All pleadings filed by Counsel shall also conform with Rule 4, Sections 1 and 2 of these Rules and shall file his Entry of Appearance, failure of which shall prevent him from representing any party during the hearing.

The Entry of Appearance shall strictly contain the counsel's Roll of Attorneys Number, MCLE Compliance, IBP Number with Date and Place of Issue, PTR Number with Date and Place of Issue. In case of government lawyers, the written authority given by the Head of Office/Department should be attached thereto. HCEaDI

In case of unsigned pleadings, the Board may consider the same as a ground for the dismissal of the action or be disregarded by the Board in the appreciation of the merits of the case.

RULE 5

Filing and Service of Pleadings

SECTION 1. Filing. — All pleadings and motions allowed to be filed must be verified and shall be filed with the Receiving and Assessment Section.

SECTION 2. Acceptance for Filing. — Only pleadings and motions which conform to the formal requirements of these Rules shall be accepted for filing upon payment of corresponding fees, as may be applicable. Acceptance for filing is not a waiver of failure to comply with the Rules and such failure may be a cause for striking off all or part of such pleading filed.

SECTION 3. Service Upon Parties. — All pleadings tendered to the Receiving and Assessment Section for filing shall show proof of service thereof upon all parties to the proceedings, as may be applicable. Such service shall be made by personal delivery or by registered mail, properly addressed, with postage prepaid, of one (1) confirmed copy to each party, together with all annexes attached thereto.

SECTION 4. Service Upon Parties Represented by Counsel. — When any party has appeared through counsel, service upon him shall be made upon his counsel or any of his counsels of record.

SECTION 5. Service of Decision, Resolution, and Order. — All decisions, resolutions, and orders of the Board shall be served upon all parties or their counsels who have entered their appearance either by personal delivery or registered mail.

SECTION 6. Extension of Time. — Whenever by any ruling of the Board, a pleading or motion is required to be filed within a fixed time or period, the Board may, for good cause shown, extend the period thereof upon motion made before the expiration of the period fixed. The Board may, upon such terms as may be just, allow or permit any pleading or motion to be filed after the time fixed by these Rules.

PART II

Procedure for Applications Without Hearing

RULE 6

Applicability

SECTION 1. Coverage. — The following petitions shall be processed without the necessity of hearing: (a) Special Permit; (b) Dropping and Substitution of Unit; (c) Storage of Plates; (d) Reactivation of Unit; (e) Dropping of Unit; (f) Change of Chassis; (g) Change of Engine; (h) Change of Investor; (i) Change of Venue of Registration; (j) Correction of Details; (k) Registration of Authorized Unit; (l) Adoption of Color Scheme; (m) Adoption of Trade Name; (n) Installation of Advertisement; (o) Upgrade/Downgrade of Unit; (p) Withdrawal of CPC; (q) Inter-change of Units; (r) or any other petition of similar nature.

SECTION 2. Contents. — The petitioner must file five (5) verified copies of the petition, together with a photocopy of the decision or resolution, authenticated OR/CR of the unit/s concerned, franchise verification, and clearance of accounts. Other documents may be required depending on the type of application as may be determined by the Board. AaSHED

RULE 7

Processing

SECTION 1. Where to File. — For petitions involving CPCs issued by the Board en banc,the same shall be filed with the Technical Evaluation Division (TED).If the CPC involved was issued by the Regional Office, the application shall be filed at the Receiving Section of the Regional Office concerned.

SECTION 2. Approval and Issuance of Resolution. — If the petition is sufficient in form and substance, and the documentary requirements have been complied with, the corresponding resolution approving the same shall be issued.

SECTION 3. Denial of Petition. — If the petition lacks the required documents or if the same fails to comply with existing policies or circulars, the Board en banc or the Regional Director shall issue a resolution denying the petition.

SECTION 4. Opposition. — In case a petition which does not require a hearing is filed at the TED and is opposed, the same shall be forwarded to the Board en banc for proper action or hearing en banc to enable the Board to rule on the opposition or objection thereto.

If the petition under this Rule is filed at the Regional Office and is opposed, the Regional Director shall set the same for hearing. Thereafter, the corresponding resolution shall be issued.

SECTION 5. Appeal on Resolutions Concerning Petitions without Hearing. — Any interested party seeking to appeal the resolution issued under this Rule shall file the necessary motion indicating the reasons in support thereof and attaching documentary proof. The procedure on motions as provided under Rule 13 hereof shall govern.

SECTION 6. Acceptance of Applications, Petitions, Complaints, or Motions. — The Receiving Section and/or the TED shall adopt a liberal attitude in the acceptance of applications, petitions, complaints, motions, and other pleadings or papers if there is substantial compliance with the requisites for acceptance thereof and if the deficiencies are remediable within a reasonable time after filing thereof.

Any personnel of the Receiving Section and/or TED who believes that what is being filed cannot be accepted by the Board due to certain deficiencies or lack of requirements is mandated to immediately personally raise the matter to the Chairman or any of the Board Members for appropriate advice. If said personnel fails to comply with the aforementioned directive and refuses to accept the pleading, the party concerned or his counsel may address a letter to any of the aforesaid officials or file a formal motion before the Board seeking reconsideration thereof.

PART III

Procedure Before the Regional Director/Hearing Officer

RULE 8

Ordinary Applications

SECTION 1. Coverage. — All uncontested applications for the issuance of CPC to operate a public land transport service shall be heard by the Regional Director or Hearing Officer.

SECTION 2. Contents. — The application shall contain a concise statement of the service proposed or authorization applied for, ultimate facts that would qualify or entitle the applicant to the grant of the certificate, privilege, or authorization, and the unit/s subject of the application.

When the application is predicated on a sale, lease, mortgage, or any other contract, the franchise holder shall be impleaded in the application. The applicant must allege in substance the salient provisions of the contract and append to the application a copy of the decision, resolution, contract and other pertinent documents.

SECTION 3. Issuance of Notice of Hearing. — Upon receipt of the application by the Legal Division/Section, it shall forthwith issue a Notice of Hearing, setting forth therein the date of hearing. Together with the notice of hearing, the applicant shall also be furnished with a list of all affected PUB operators for compliance to the notice requirement, whenever necessary and applicable.

It shall be the duty of the applicant or counsel of record to secure the Notice of Hearing from the Legal Division/Section.

SECTION 4. Proof of Notice and Publication. — For inter-regional cases, the applicant shall cause the publication of the Notice of Hearing in a newspaper of national circulation at least ten (10) days prior to the scheduled hearing.

However, for intra-regional cases, Notice of Hearing may be published in a newspaper of local circulation.

Applicants for PUB service shall show proof of notice to affected operators during the hearing whenever applicable and necessary.

SECTION 5. Other Documentary Requirements. — The applicant, during the hearing, shall furnish other documentary requirements necessary for assessment and evaluation.

SECTION 6. Hearing; Appearance of Applicant and Counsel. — During the hearing, whenever applicable, the applicant shall personally appear and be assisted by counsel of choice.

In case of individual applications, only members of the applicant's immediate members of the family shall be allowed as representatives upon presentation of the necessary Special Power of Attorney and representative's identification documents. Immediate family member shall mean the applicant's spouse, children, father or mother.

In the case of corporations, partnerships, and cooperatives, only corporate officers, any of the partners and cooperatives officers shall be allowed as representatives. The corresponding Board/Partnership Resolution and Secretary's Certificate designating the representative shall be allowed as representatives. The corresponding Board/Partnership Resolution and Secretary's Certificate designating the representative shall be presented, together with the representative's identification documents.

Corporate and Cooperative Officers shall mean the President/Chairman, Vice President/Vice Chairman, Secretary, Treasurer and Auditor.

SECTION 7. Failure to Appear. — If the applicant or the duly authorized representative and counsel fail to appear on the initial scheduled hearing, the case shall be reset to another date. Only a maximum of two (2) resetting within a period of one (1) month shall be allowed. Failure to appear on the third (3rd) scheduled hearing shall cause the dismissal of the application for lack of interest. aSIETH

SECTION 8. Failure to Comply with Jurisdictional Requirements. — If the applicant fails to cause the publication of the Notice of Hearing or submit proof of notice to affected operators on the scheduled hearing, a Second Notice of Hearing may be issued upon payment of the required fees. Subsequent failure to comply with the jurisdictional requirements shall cause the dismissal of the application for lack of interest.

SECTION 9. Decisions and Resolutions.— If the application is found to be complete in form and substance and all documentary requirements complied with, the same shall be submitted for resolution. After due evaluation, the decision or resolution shall be forwarded to the Board en banc or Regional Director for final consideration.

All rulings rendered by the Board en banc, shall be attested to by the Executive Director prior to its release.

RULE 9

Complaints

SECTION 1. Scope. — The Hearing Officer shall hear complaints as may be delegated by the Board en banc or by the Regional Director as the case may be.

SECTION 2. Contents. — All complaints shall contain a concise statement of facts showing the violations of the terms and conditions of the CPC subject of the complaint, and attaching thereto the complaint's sworn statement and other supporting document.

SECTION 3. Summons. — Once a complaint is filed, it shall be the duty of the Hearing Officer assigned to issue the corresponding Summons, attaching thereto a copy of the complaint, and directing respondent to appear on the scheduled hearing and to file an Answer.

SECTION 4. Answer. — Respondent shall file an Answer to the complaint within ten (10) days from receipt of the Summons. Failure to file an Answer shall be deemed as a waiver on the part of respondent to participate in the proceedings and present evidence.

SECTION 5. Hearing. — The Hearing Officer shall proceed to the reception of evidence on the date, place, and time specified in the Summons.

SECTION 6. Failure to Appear. — If the complainant fails to appear on the scheduled hearing without justifiable cause, the complaint shall be dismissed. However, if it physically impossible for the complainant to appear, he may send an authorized representative (as referred to in Section 6 Rule 8).

If respondent or the representative or counsel files an Answer but fails to appear on the scheduled hearing, the hearing of the complaint shall proceed as scheduled. CSAaDE

SECTION 7. Orders or Resolutions. — After the termination of the hearing, the Hearing Officer shall submit the complaint for resolution. After due evaluation, the order or resolution shall be forwarded to the Board en banc or Regional Director for final consideration.

SECTION 8. Filing Fees. — The Board shall assess and collect the corresponding filing fees for every complaint filed. This amount shall be determined and posted at the Board's premises or published upon the approval of these Rules. Except for complaints initiated by the Board or its motu proprio action against erring operators or parties concerned directing the latter to show cause or explain why their franchise/s should not be cancelled, no complaint shall be received or entertained by the Board without payment of the corresponding filing fees as mentioned above.

PART IV

Procedure Before the Board En Banc

RULE 10

Applications

SECTION 1. Scope. — All applicants for issuance of CPC, when declared contested, shall be heard by the Board en banc.

SECTION 2. Pre-Hearing Conference. — Prior to the formal hearing and after the last pleading is filed, the Board en banc may set the case for a pre-hearing conference for the purpose of adopting means or procedures as may aid in the prompt disposition of the contested application.

Upon termination of the Pre-Hearing Conference, the Board en banc shall issue a Pre-Hearing Conference Order based on that which were adopted and agreed upon during the Pre-Hearing Conference.

SECTION 3. Judgment Based on Pleadings; Summary Judgment. — If, at the pre-hearing conference, the Board en banc finds that facts exist upon which a decision on the pleadings or a summary decision may be made, a decision on the pleadings or a summary decision may be rendered as justice may require.

SECTION 4. Hearing Before the Board En Banc. — The Board en banc shall proceed to hear and determined the merits of the case.

The Board en banc,on its own initiative or upon motion of a party, may order the consolidation of cases, involving common questions of law or facts, and their proceedings.

SECTION 5. Failure to Appear. — If the applicant fails to appear on the scheduled hearing without justifiable cause, the application shall be dismissed for lack of interest. However, if it is physically impossible for him to appear, he may send an authorized representative to appear on his behalf (as referred to in Section 6 Rule 8).

If the oppositor fails to appear on the scheduled hearing without justifiable cause, the opposition shall be dismissed for lack of interest. However, if it is physically impossible for him to appear, he may send an authorized representative to appear on his behalf (as referred to in Section 6 Rule 8).

SECTION 6. Appearance of Counsel. — No lawyer shall appear as counsel before the Board en banc without complying with Section 12 Rule 4 of these Rules.

SECTION 7. Resolutions or Decisions. — Upon termination of the proceedings, the Board shall render/issue a resolution or decision after deliberation and consultation. The resolution or decision must bear the concurrence of at least two (2) of its composite members. The Board en banc shall designate among themselves who will write the opinion disposing of the case. However, if any Member takes no part therein, dissents, or abstains from any resolution or decision, or when there is a vacancy in the Board, the reason thereof must be stated in the resolution or decision.

RULE 11

Complaints

SECTION 1. Coverage. — All complaints involving violations of the terms and conditions of the CPC, the rules and regulations of the Board, public utility laws and related laws, as may be determined by the Board, shall be heard by the Board en banc.

SECTION 2. Contents. — The complaint shall contain a concise statement of facts showing the violations of the terms and conditions of the CPC, the rules and regulations of the Board, public utility laws and related laws, subject of the complaint, and attaching thereto the complainant's sworn affidavit and other pertinent documents. CDAEHS

SECTION 3. Summons. — If the complaint is sufficient in form and substance, it shall be the duty of the Legal Division to issue summons, attaching thereto a copy of the Complaint and directing the respondent to appear on the scheduled hearing and to file an Answer.

SECTION 4. Answer. — Respondent shall file an Answer within ten (10) days from receipt of the Summons indicating therein all affirmative defenses. Failure to file an Answer within the period allowed by the Board en banc shall be deemed as a waiver to participate in the proceedings and to present evidence. Any other pleadings may be filed by the parties as the Board en banc may allow.

SECTION 5. Resolution on the Pleadings. — If, upon the discretion of the Board en banc,it finds that facts exist upon which a ruling on the pleadings may be made, a decision on the pleadings or a summary decision may be rendered as justice may require.

SECTION 6. Hearing. — The Board en banc shall proceed to hear and determine the merits of the case.

The Board en banc,on its own initiative or upon motion of a party, may order the consolidation of cases, involving common questions of law or facts, and their proceedings.

SECTION 7. Failure to Appear. — If the complainant fails to appear on the scheduled hearing without justifiable cause, the complaint shall be dismissed for lack of interest. However, if it is physically impossible for the complainant to appear, he may send an authorized representative to appear on his behalf (as referred to in Section 6 Rule 8).

If the respondent or authorized representative files an Answer but fails to appear on the scheduled hearing, the hearing of the complaint shall proceed as scheduled.

SECTION 8. Resolutions. — Upon termination of the proceedings, the Board en banc, in every case heard, shall render/issue a resolution disposing of the merits of the matter within its jurisdiction with the concurrence of any two (2) of the composite members and after deliberation and consultation. The Board en banc shall designate among themselves who will write the opinion disposing of the case. However, if any Member takes no part, dissents, or abstains from the resolution, or when there is a vacancy in the Board, the reason thereof must be stated in the resolution.

The Board en banc may grant such other relief or impose such terms it may deem necessary in order to promote public interest.

RULE 12

Fare Adjustments

SECTION 1. Coverage. — Fare adjustments may be acted upon by the Board en banc, motu proprio, in the exercise of its power to review and adjust fares/rates, or through a Petition filed before it. caCEDA

Should the Board en banc find the need to adjust fares on its own initiative, the requirements for publication, notice, and hearing as prescribed under this Rule shall be observed.

In any other instance, all Petitions for Fare Adjustment shall be filed, heard and decided by the Board en banc.

However, Petition for Fare Adjustment applicable only within the jurisdiction of the Regional Office may be filed thereat. The Regional Office shall forward the Petition to the Board en banc and the latter may delegate the hearing and reception of evidence to the Regional Director concerned.

SECTION 2. Contents. — All Petitions for Fare Adjustment shall contain concise statements of facts in support of the petition and attaching the petitioner's sworn statement and all other supporting documents.

No Petition for Fare Adjustment shall be accepted, unless proof of service of the Petition to the Office of the Solicitor General is shown and established.

SECTION 3. Notice and Publication. — Upon receipt of the petition, the Legal Division or the Regional Director shall issue a Notice of Hearing. The petitioner shall cause the publication thereof at least fifteen (15) days prior to the scheduled hearing in a newspaper of general circulation. In case of Petitions filed before the Regional Office, the Notice may be published in a newspaper of local circulation.

SECTION 4. Opposition and Other Pleadings. — Any opposition to the petition shall be filed within ten (10) days from the date of publication of the Notice of Hearing. Any other pleadings may be filed by the parties as the Board en banc may allow.

SECTION 5. Appearance of Solicitor General. — In Petitions for Fare Adjustment, the appearance of the Office of the Solicitor General (OSG) or its authorized representative shall be required, consistent with the purpose of Section 3, Rule 2 of these Rules. If despite due notice, the OSG or its authorized representative fails to appear, the Board en banc may proceed to hear the Petitions.

SECTION 6. Hearing. — Petitioner shall submit proof of receipt of the Petition by the OSG thereof on the scheduled hearing, failure of which may result to the deferment of the proceedings.

The Board en banc or the Regional Director, as the case may be, motu proprio or upon motion of a party, may order the consolidation of cases, involving common questions of law or facts, and their proceedings.

The Board en banc or the Regional Director, as the case may be, shall proceed to hear and determine the merits of the case.

SECTION 7. Failure to Appear. — If the petitioner or its authorized representative (as referred to in Section 6 Rule 8) fails to appear on the scheduled hearing without justifiable cause, the petition shall be dismissed for lack of interest.

If the oppositor or its authorized representative (as referred to in Section 6 Rule 8) fails to appear on the scheduled hearing without justifiable cause, the opposition shall be dismissed for lack of interest.

SECTION 8. Resolutions. — Upon termination of the proceedings, the Board en banc,in every case heard, shall render/issue a resolution disposing of the merits of the matter within its jurisdiction with the concurrence of any two (2) of the composite members and after deliberation and consultation. The Board en banc shall designate among themselves who will write the opinion disposing of the case. However, if any Member takes no part, concurs (for a different reason),dissents, or abstains from the resolution, or when there is a vacancy in the Board, the reason thereof must be stated in the resolution.

Upon termination of the proceedings in petitions heard in the Regions, the Regional Director shall prepare his recommendation and forward the same and all pertinent documents to the Board en banc for proper disposition.

The Board en banc may grant such other relief or impose such terms as it may deem necessary in order to promote public interest.

SECTION 9. Publication and Effectivity of Resolutions. — All resolutions disposing of the Petitions for Fare Adjustment shall take effect only after publication in a newspaper of general or local circulation, as the case may be, prior to implementation.

In case of Provisional Orders relating to Petitions for Fare Adjustment, the same shall also take effect only after publication in a newspaper of general or local circulation, as the case may be, prior to implementation. IAcTaC

RULE 13

Motions

A.  In General

SECTION 1. Scope and Content. — A Motion is an application of relief other than by a pleading. It shall state the relief sought to be obtained and the grounds upon which it is based, and, when applicable, shall be accompanied by supporting affidavits and other pertinent documents.

It shall be made in writing, except those made in open court or in the course of a hearing, and shall comply with requirements of Rule 4 of these Rules insofar as applicable.

SECTION 2. Notice. — Insofar as applicable and allowed by the Board en banc or the Regional Director, all written motions shall contain a notice setting the hearing thereof at a specified date and time and shall be served upon all parties concerned at least three (3) working days before the hearing.

SECTION 3. Proof of Service and Receipt. — The Board en banc or the Regional Director shall not act upon any motion, as may be applicable, without proof of service of notice thereof on all parties either by personal service or registered mail. The copy of the notice bearing the signature of the recipient (in case of personal service) or the registry return card (in case of registered mail) shall be presented during the hearing.

SECTION 4. Hearing on the Motion. — The Board en banc or the Regional Director shall proceed to hear and determine the merits of the motion. However, the Board en banc or the Regional Director may opt to exempt the hearing of ex parte motions.

The motions shall be served upon all parties on record and shall be set for hearing within ten (10) days from service thereof, unless a different schedule for hearing is allowed.

SECTION 5. Ex-Parte Motions. — Ex-Parte motions are those that may be acted upon showing proof of urgent necessity and without prejudicing the rights of the adverse party. However, the adverse party must always be furnished copies of said motions.

SECTION 6. Opposition. — Any party to the proceedings may file an opposition to the motions allowed by this Rule accompanied by supporting affidavits and documents, and serving a copy thereof upon the movant.

The Board en banc or the Regional Director may grant such other relief or imposes such terms as it may deem necessary in order to promote public interest.

SECTION 7. Failure to Appear. — If the movant or its authorized representative (as referred to in Section 6 Rule 8) fails to appear on the scheduled hearing without justifiable cause, the motion shall be denied for lack of interest.

If the oppositor or its authorized representative (as referred to in Section 6 Rule 8) fails to appear on the scheduled hearing without justifiable cause, the opposition shall be denied for lack of interest.

SECTION 8. Resolution on the Motion. — Upon termination of the proceedings, the Board en banc,after deliberation and consultation, or the Regional Director shall render/issue resolution.

The resolution of the Board en banc must bear the concurrence of at least two (2) of the composite members. The Board en banc shall designate among themselves who will write the opinion disposing of the case. However, if any Member takes no part, dissents, or abstains, or when there is a vacancy in the Board, the reason thereof must be stated in the resolution.

B.  Specific Motions

SECTION 9. Motion to Dismiss. — No Motion to Dismiss shall be allowed except on the ground of lack of jurisdiction over the action, provided, however, that any other ground that might warrant a dismissal of the action may be raised as an affirmative defense in a responsive pleading.

SECTION 10. Motion for Reopening. — Any party may file a Motion for Reopening of the proceeding at any time after the presentation of evidence has been completed but before the promulgation of a decision or resolution, if during that period there should occur or arise any transaction, events or matters, whether factual or legal, which should change the situation of the parties.

SECTION 11. Motion for Reconsideration. — A party adversely affected by a decision, resolution, or order may, within fifteen (15) days from receipt of a copy thereof, file a Motion for Reconsideration. However, the Board en banc or the Regional Director may allow the filing of the motion beyond the fifteen (15) day period as may be permitted by the Board en banc or the Regional Director, when justice and public interest so require.

No more than one Motion for Reconsideration by each party shall be entertained.

After the lapse of the fifteen (15)-day period, the filing of a Motion for Reconsideration shall not stay the immediate execution of the decision, resolution, or order, unless otherwise ordered by the Board en banc or the Regional Director, as the case may be. ECaSIT

SECTION 12. Motion for Reconstitution of Records. — Any interested party may, by motion, apply for the reconstitution of lost or destroyed records of any case or proceeding before the Board en banc or Regional Office. Said motion shall be in writing and with service upon all affected parties. It shall state the title, case number and the parties in the case or proceeding desired to be reconstituted, reason/s for destruction or loss, if known, and that the party seeking its reconstitution has exhausted all means to locate said records to no avail.

Finding the motion sufficient in form and substance, the Legal Division/Section shall issue a notice of hearing. The movant shall cause the publication thereof, at least once in a newspaper of general or local circulation, as the case may be, and at least ten (10) days prior to the scheduled hearing.

PART V

Show Cause Orders

RULE 14

Show Cause Orders with Preventive Suspension

SECTION 1. Scope. — Show Cause Orders with Preventive Suspension may be issued by the Board en banc or the Regional Director, as the case may be, in cases where the respondent is reported to have or will continue to cause death, physical injuries, defraudation of public utility users, or wilfully or contumaciously refuse to comply with the orders, rules or regulation of the Board, or any provisions of the E.O. and the Act.

SECTION 2. How Determined. — The Board en banc or the Regional Director shall determine the propriety of issuing a Show Cause Order with Preventive Suspension through any of the following instances: (a) motu proprio when justice and public interest so require; (b) based on an official document issued by any government agency; (c) based on an official report of any LTFRB personnel; or (d) based on a credible sworn statement of any offended party.

SECTION 3. Contents. — The Show Cause Order with Preventive Suspension shall state the following: (1) basis of the violation reported or complained of; (2) whenever practicable, a copy of the report or complaint upon which the order is based, (3) directive to the respondent to appear in the hearing and answer within seventy-two (72) hours from receipt of the order and show cause why the certificate involved should not be suspended or cancelled for the cause/s stated in the report or complaint, and, (4) schedule of hearing.

The Board en banc or the Regional Director may, prior to the hearing, preventively suspend not exceeding thirty (30) days the certificate involved or the exercise of any right or authority issued or granted under the Act or E.O.,whenever it is necessary to avoid the cause/s mentioned in Section 1 of this Rule. IcTaAH

SECTION 4. Failure to Appear. — The failure of respondent or its authorized representative (as referred to in Section 6 Rule 8) to appear in the scheduled hearing without justifiable cause may warrant the cancellation of the CPC involved.

SECTION 5. Explanation Without Appearance. — Whenever the respondent mentioned in the immediately preceding sections fails to appear, with or without justifiable cause, but has filed a written explanation, the Show Cause Order with Preventive Suspension shall be deemed submitted for resolution, unless the Board en banc or the Regional Director orders otherwise.

RULE 15

Show Cause Orders with Preventive Suspension

SECTION 1. Scope. — Show Cause Order issued under this Rule may be issued by the Board en banc or the Regional Director, as the case may be, in cases where the respondent appears to have violated any of the requirements for the grant of CPC, or the terms and conditions thereof, or in any other cases not covered by the preceding Rule.

SECTION 2. How Determined. — The Board en banc or the Regional Director shall determine the propriety of issuing a Show Cause Order under this Rule through any of the following instances: (a) motu proprio when justice and public interest so require; (b) based on an official document issued by any government agency; (c) based on an official report of any LTFRB personnel; or (d) based on a credible sworn statement of any offended party.

SECTION 3. Contents. — The Show Cause Order shall state the following: (1) basis of the violation reported or complained of; (2) whenever practicable, a copy of the report or complaint upon which the order is based, (3) directive to the respondent to appear in the hearing and answer within seventy-two (72) hours from receipt of the order and show cause why the certificate involved should not be suspended or cancelled for the cause/s stated in the report or complaint, and, (4) schedule of hearing.

SECTION 4. Failure to Appear or to Submit Explanation. — If the respondent or its authorized representative (as referred to in Section 6 Rule 8) fails to appear or to submit an Explanation, without justifiable cause, the case shall be deemed submitted for resolution, unless the Board en banc or the Regional Director orders otherwise.

RULE 16

Compliance with the Show Cause Orders

SECTION 1. Contents. — Whenever the Board en banc or the Regional Director issues an Order which needs further action, the party to whom it is directed shall file the necessary pleading stating compliance therewith, and attaching documentary proof thereto, within ten (10) days from date of compliance.

SECTION 2. Action of the Board. — When the Board en banc or the Regional Director, finds the compliance sufficient, it shall issue an Order on the matter as it may deem proper. Otherwise, non-compliance thereto may result in the suspension or cancellation of the CPC, as may be warranted.

PART VI

Compilation of Orders, Resolutions and Decisions

RULE 17

Compilations

SECTION 1. Compilation and Publication of Orders, Resolution and Decisions of the Board En Banc. — The Executive Director, through the Management Information Division, shall compile all orders, resolutions and decisions of the Board, including final decisions of the Supreme Court or Court of Appeals relevant to cases and proceedings before the Board, if any.

SECTION 2. Compilation and Publication of Orders, Resolution and Decisions of the Regional Director. — The Regional Records Officer shall compile all Orders, Resolutions and Decisions of the Regional Director.

PART VII

Appeal

RULE 18

Appeal from the Resolutions or Decisions of the Regional Director

SECTION 1. Appeal. — Any party may appeal the Resolution or Decision of the Regional Director to the Board en banc.However, interlocutory orders cannot be the subject of an appeal. The Board en banc may motu proprio review any resolution or decision of the Regional Director. TIaEDC

SECTION 2. Procedure on Appealed Cases. — In case of an appeal under the preceding section, the following rules shall apply:

a) An appeal from a resolution or decision of the Regional Director shall be perfected by (1) filing with the Regional Office a Notice of Appeal within a period of thirty (30) days from receipt of such Resolution or Decision; (2) furnishing a copy of the Notice of Appeal to all parties to the case; and (3) payment by the appellant of the required appeal fee. 

b) Upon perfection of the appeal, the Regional Director shall transmit the complete records of the case to the Board en banc, together with the proof of payment of the appeal fee, within a period of fifteen (15) days.

c) No appeal shall be entertained by the Board en banc unless it is shown that a Motion for Reconsideration from the resolution and decision has been filed with the Regional Office and the same has been resolved.

d) Immediately upon receipt of the records of the case and/or the documents abovementioned, the Board en banc shall inform all parties thereof, and shall issue an order requiring all parties (1) to file within fifteen (15) days from receipt of the Order their respective Memorandum, together with the supporting documents or evidence; and (1) to furnish the other party copies thereof.

e) The Memorandum shall contain the following:

e.1) Exact date of the appealed resolution or decision;

e.2) Exact date when the appealed resolution or decision was received;

e.3) Information regarding compliance with the requirements for perfecting an appeal under this Rule;

e.4) Brief statement of the case and the facts;

e.5) Reasons for the appeal;

e.6) Arguments in support of the appeal;

e.7) Relief sought.

The Board en banc may require the filing of additional pleadings as it may deem proper to support the appeal.

f)Upon receipt of the parties' Memorandum, the Board en banc shall issue an Order considering the appeal submitted for resolution. The Board en banc may set the appeal for a clarificatory hearing as it may deem proper.

SECTION 3. Effect of Appeal. — The appeal shall not stay the resolution or decision of the Regional Director unless the Board en banc shall order otherwise.

SECTION 4. Appeal Fee. — Prior to the filing of the Notice of Appeal from the final decision or order of the Regional Office, the corresponding filing fee and other related charges must be duly paid. Failure to do so shall be a ground to refuse acceptance for filing such Notice of Appeal. If said Notice of Appeal was filed without proof of payment of the same, the appeal shall be dismissed outright.

RULE 19

Appeal from the Resolutions or Decisions of the Board En Banc

SECTION 1. Appeal. — Any party may appeal the resolution or decision of the Board en banc to the Secretary. However, interlocutory Orders cannot be the subject of an appeal. The Secretary may motu proprio review any resolution or decision of the Board en banc.

SECTION 2. Procedure on Appealed Cases. — In case of an appeal under the preceding section, the following rules shall apply:

a)An appeal from a Resolution or Decision of the Board en banc shall be perfected by (1) filing with the Board en banc and Secretary a Notice of Appeal within a period of thirty (30) days from receipt of such Resolution or Decision; (2) furnishing a copy of the Notice of Appeal to all parties to the cases; and (3) payment by the appellant of the required appeal fee.

b)Upon perfection of the appeal, the Board en banc shall transmit the complete records of the case to the Secretary, together with the proof of payment of the appeal fee, within a period of fifteen (15) days.

SECTION 3. Effect of Appeal. — The appeal shall not stay the execution of the resolution or decision of the Board en banc, unless the Secretary shall order otherwise.

SECTION 4. Appeal Fee. — Failure on the part of the appellant to pay the appeal fee shall be a ground motu proprio dismissal of the appeal by the Board or by the Secretary.

PART VIII

Evidence

RULE 20

Uncontested Proceedings

SECTION 1. Reception of Evidence. — When during the scheduled hearing, it appears that: (1) public interest requires the granting of the relief or authorization requested, or (2) if there is no opposition or contest thereto, all documentary evidence and supporting documents shall be formally offered and received. The proceedings shall then be deemed terminated.

RULE 21

Contested Proceedings

SECTION 1. Reception of Evidence. — In cases where public interest requires or when the Board en banc deems it proper to hear, the Board en banc shall receive evidence in support of the application, petition, or motion as may be necessary. Reception of evidence may be delegated by the Board en banc.Only those formally offered in evidence shall be considered for the proper determination of the merits of the case. aTcIAS

RULE 22

Presentation of Evidence

SECTION 1. Order of Presentation. — As far as practicable, the following order shall be followed in the presentation of evidence:

(a) The presentation of evidence shall commence with the party initiating the proceedings. For consolidated proceedings, the party commencing the action shall first present evidence.

(b) The party opposing the grant of the relief sought shall then present their evidence; and

(c) Presentation of rebuttal or sur-rebuttal evidence may be allowed at the discretion of the Board en banc.

SECTION 2. Deposition. — When a witness resides in a place distant from the Office of the Board and it would be inconvenient and expensive for him to appear personally, the Board en banc, upon written request of any party, may authorize the Regional Director or Hearing Officer to take the depositions in accordance with the provisions of Rules 23 (Depositions Pending Action) and 24 (Depositions Before Auction or Pending Appeal) of the Rules of Court.

The Board en banc may likewise encourage the parties to exercise other modes of discovery provided by the Rules of Court for the speedy disposition of cases as public interest may require.

SECTION 3. Record of Proceedings. — The entire proceedings of the hearing under Part III, IV, and VI (in case of clarificatory hearing),including the questions propounded and answers thereto, shall be recorded. A transcript of the record of the hearing shall be certified by the stenographer on duty and shall be deemed prima facie a correct statement of such proceedings.

SECTION 4. Procedure and Quantum of Evidence. — The Board is not bounded by the strict Rules of Procedure and technical rules of evidence in the conduct of its hearings. And as to the required quantum of evidence to establish a fact, substantial evidence shall be sufficient or such amount of evidence which is relevant to the fact in issue that a reasonable mind may accept to be adequate to justify or support a finding or conclusion. TcEAIH

PART IX

Provisional Relief

RULE 23

Provisional Relief

SECTION 1. Scope. — Upon the filing of an application, complaint or petition or at any stage thereafter, the Board en banc or the Regional Director may grant the relief prayed for if there exists any compelling reason in the interest of public service, without prejudice to a final resolution or decision to be issued.

PART X

Contempt

RULE 24

Power to Cite in Contempt

SECTION 1. Scope. — The Board en banc or the Regional Director, in the exercise of its quasi-judicial function, shall have the power to punish for contempt any person, directly or indirectly, in accordance with Rule 71 of the Rules of Court as may be applicable.

PART XI

Miscellaneous Provisions

RULE 25

Repealing Clause

SECTION 1. Repeal. — All prior rules, regulations or practices heretofore followed in the Board, which are inconsistent with these Rules, are hereby repealed.

RULE 26

Separability Clause

SECTION 1. Separability Clause. — If any provision of this Rules is declared invalid, the provisions thereof not affected by such declaration shall remain in full force and effect.

RULE 27

Effectivity

SECTION 1. Effectivity. — These Rules shall take effect after fifteen (15) days following its publication in any newspaper of national circulation or in the Official Gazette. Three (3) copies of these Rules shall be furnished upon the UP Law Center pursuant to Presidential Memorandum Circular No. 11 dated October 9, 1992.

APPROVED:

This 1st day of September, 2011, Quezon City, Philippines.

(SGD.) ATTY. NELSON P. LALUCESChairman

(SGD.) ENGR. SAMUEL JULIUS B. GARCIABoard Member

(SGD.) ATTY. MANUEL M. IWAYBoard Member

Effectivity Date: _______________

ATTESTED BY:

(SGD.) ATTY. DANTE XENON B. ATIENZAExecutive Director

Published in The Philippine Star on September 5, 2011.