Anglo-Fil Trading vs. Lazaro, 124 SCRA 494 (1983)

Anglo-Fil Trading vs. Lazaro, 124 SCRA 494 (1983)

Nature: Petition for certiorari

Keyword: GR # L-54958 September 2, 1983; Constitutional Law – Police Power, Stevedoring

FACTS: Respondent Philippine Ports Authority (PPA) implemented a policy of integrating contractors engaged in stevedoring services and have only one stevedoring contractor to engage in cargo-handling services in Manila South Harbor to insure efficiency and economy in cargo-handling operation and provide better service to port users and to amply protect the interest of labor and the government as well. The evaluation of performance of existing contractors made by a special committee created by PPA resulted to an award in favor of Ocean Terminal Services, Inc. (OTSI).

Petitioners with hold-over permits, contends that the award is invalid because contracts entered into with local and foreign clients or customers would be impaired.

ISSUE: Whether or not PPA have the power and authority to award an exclusive stevedoring contract in favor of respondent OTSI.

HELD: Yes. Manila South Harbor is a public property owned by the State, wherein operations of the port including stevedoring services are subject to regulation and control for the public good and interest of the general welfare. In addition, the contract clause cannot override the police power enacting public regulations intended for the general welfare.

Petition Denied.

NOTE: Stevedoring, as the term is understood in the port business, consists of the handling of cargo from the hold of the ship to the dock, in case of pier-side unloading, or to a barge, in case of unloading at sea. The loading on the ship of outgoing cargo is also part of stevedoring work. Stevedoring charges at rates approved by the Government are assessed and collected for the services.