09/06/2026
The (SC) has ruled that Koronadal City cannot stop a bus company from using its own private terminal and force it to use the cityโs common terminal, as these would violate the companyโs property rights.
In a Decision written by Associate Justice Jhosep Y. Lopez, the SC ๐๐ฏ ๐๐ข๐ฏ๐ค issued a writ of injunction against Koronadal City and its officials, prohibiting them from blocking and rerouting the buses of Yellow Bus Lines, Inc. (Yellow Bus) and requiring it to use the City of Koronadal Integrated Transport Terminal Complex (common terminal).
Sangguniang Panlungsod of Koronadal City, through ๐๐ณ๐ฅ๐ช๐ฏ๐ข๐ฏ๐ค๐ฆ ๐๐ฐ. 9, ๐๐ฆ๐ณ๐ช๐ฆ๐ด ๐ฐ๐ง 2018, created the common terminal to provide efficient transport services, reduce traffic congestion and pollution in the cityโs business center, and generate revenue for public services.
Yellow Bus filed a complaint for injunction to stop the implementation of the ordinance, arguing that the city unlawfully interfered with its right to use its own private terminal. It claimed that as a result, it has paid more than PHP 1 million in terminal fees while travel time of its buses increased by 20-25 minutes and dispatch times were disrupted.
Koronadal City argued that after being designated as the administrative seat of Region XII, it was required to have a centralized transport terminal, as part of its valid exercise of its power to regulate traffic, promote public welfare, and generate revenue.
Agreeing with the Regional Trial Court and the Court of Appeals, the SC recognized Yellow Busโ ownership rights to its private terminal, including the right to use and manage the property, as protected by the Constitution.
The SC emphasized that an LGUโs exercise of police power is valid only if it aims to address a public concern and the methods used are reasonably necessary. In this case, forcing all PUVs to use the common terminal while effectively prohibiting private terminals was excessive and not reasonably necessary to achieve that goal.
The SC said that the measures imposed by the city were too broad and excessive for their purpose. The city also did not prove that compelling PUVs to use the common terminal was the only solution to the traffic problem.
The SC added that there is no legal basis to block Yellow Bus from using its own facility or to force rerouting, as the ordinance did not expressly mandate that all PUVs use the common terminal or prohibit private terminals.
Read the full text of the press release at https://sc.judiciary.gov.ph/?p=167210
Read the full text of the Decision https://sc.judiciary.gov.ph/?p=165268
Read the Separate Opinion of Senior Associate Justice Marvic M.V.F. Leonen at https://sc.judiciary.gov.ph/?p=165362
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