The Iloilo Ice and

Cold Storage

Company v. Public

Utility Board

FACTS

(1) The Secretary of

Public Commission

investigated the

operation of ice plants

in Iloilo.

(2) He reported to the

Public Commissioner

that the Iloilo Ice and

Cold Storage company

should be considered a

public utility.

(3) The Commissioner

sent an order directing

the Iloilo Ice and Cold

Storage company to

explain why it should

not be considered a

public utility and is thus

exempted to comply

with Act 2307 as

amended by Act 2694.

(4) The head of the Ice

and Cold Storage

Company responded, in

which it said that the

company has always

been a private

enterprise.

ISSUE

Is the Iloilo Ice

and Cold Storage

a public utility?

COURT

RULING

The Ice and Cold Storage company is NOT a

public utility.

Points to Consider:

In US vs. Tan Piaco, the essential feature of a public use is that it is NOT confined to privileged

individuals, but is open to the indefinite public.

In this case, the Iloilo Ice and Cold Storage s operation is governed primarily through its private

contracts with other companies.

The Ice and Cold Storage company is NOT a public

utility.

Points to Consider:

In Thayler and Thayler vs. California Development

Company, the use is public if all persons have the

right to use it under the same circumstances.

In this case, Iloilo Ice Cold and Storage is not a public

utility because not all persons have the right to use it,

and that the persons allowed to use the same is only

permitted to do so by a private contract.

The Ice and Cold Storage company is NOT a public utility.

Points to Consider:

In Fall Brook Irrigation District vs. Bradley, if the company

did in truth sell ice to all persons seeking its service, it would

be a public utility. But if it was organized solely for particular

persons under strictly private contracts, and never by its

owners to public use, it could not be a public utility without

violating the due process of the law clause of the Constitution.

In this case, since 1908, the Iloilo Ice and Cold Storage

Company has been carried on with selected customers only.

Larger part of the company s business is perfected by written contracts signed by the parties served, which, in present form,

includes an agreement that no right to future service is

involved.

The Iloilo Ice and Cold

Storage Company v. Public

Utility Board

Act No.

2694 Sec. 9

Includes every individual,

copartnership, association,

corporation, joint stock company

that now or hereafter may own,

operate, manage, control within

the Philippine Islands; any ice,

refrigeration, cold storage system,

plant or equipment for public use.

Whether by

right or by

permission

The criterion with which to

judge of the character of

the use is whether the

public may enjoy it by right

or only by permission.

The essential feature of a

public use is that it is not

confined to privileged

individuals but open to the

indefinite public.

Use for

indefinite

public

If the all persons have

the right to use it

under the same

circumstances

If the corporation,

individual, copartnership,

association, joint stock

company was organized

solely for particular

persons under strictly

private contracts

The Iloilo Ice and

Cold Storage

Company is NOT a

public utility J

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