MAGTAJAS V. PRYCE PROPERTIES (G.R. No. 111097 July 20, 1994)

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SUBJECT: LAW ON PUBLIC CORPORATION

MAGTAJAS V. PRYCE PROPERTIES

G.R. No. 111097 July 20, 1994

Topic: Powers of Local Government Unit

FACTS: PAGCOR is a corporation created directly by P.D. 1869 to help centralize and regulate all games of chance, including casinos on land and sea within the territorial jurisdiction of the Philippines. PAGCOR decided to expand its operations to Cagayan de Oro City. It leased a portion of a building belonging to Pryce Properties Corporations, Inc., renovated & equipped the same, and prepared to inaugurate its casino during the Christmas season.

 

Then Mayor Magtajas together with the city legislators and civil organizations of the City of Cagayan de Oro denounced such project. In reaction to this project, the Sangguniang Panlungsod of Cagayan de Oro City enacted two (2) ordinances prohibiting the issuance of a business permit and canceling existing business permit to establishment for the operation of casino (ORDINANCE NO. 3353) and an ordinance prohibiting the operation of casino and providing penalty for its violation. (ORDINANCE NO. 3375-93).

ISSUE: WON Ordinance No. 3353 and Ordinance No. 3375-93 are a valid exercise of police power of the Local Government Unit.

 

RULING: NO. The ordinances enacted are invalid. Ordinances should not contravene a statute. Municipal governments are merely agents of the National Government. Local Councils exercise only delegated powers conferred by Congress. The delegate cannot be superior to the principal powers higher than those of the latter. PD 1869 authorized casino gambling. As a statute, it cannot be amended/nullified by a mere ordinance.

 

As to petitioners attack on gambling as harmful and immoral, the Court stressed that the morality of gambling is not a justiciable issue. Gambling is not illegal per se. While it is generally considered inimical to the interests of the people, there is nothing in the Constitution categorically proscribing or penalizing gambling. It is settled that questions regarding the wisdom, morality, or practicability of statutes (PAGCOR Law) are not addressed to the judiciary but may be resolved only by the legislative and executive departments, to which the function belongs in our scheme of government. That function is exclusive. Whichever way these branches decide, they are answerable only to their own conscience and the constituents who will ultimately judge their acts, and not to the courts of justice.

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