- Petitioner
- The Manila Electric Railroad
- Respondent
- The Board of Public Utility Commissioners
- Citation
- G.R. No. 10241
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Moreland, J.
- Decided
- March 25, 1915
Summary
Manila Electric Railroad challenged a Board of Public Utility Commissioners order requiring it to provide free transportation to secret service police carrying concealed badges. The company's franchise required free rides for police 'wearing official badges' and for nine years, the company enforced a rule requiring visible badge display, which the city accepted. The Supreme Court reversed the Board's decision, applying contract interpretation principles and emphasizing the parties' long-standing practical construction of the franchise terms. The Court found that legislative history and nine years of consistent performance demonstrated that 'wearing official badges' meant visible display during transportation, not concealed carrying. This 1915 decision established important precedent on franchise interpretation and the significance of parties' course of performance in contract construction.