Wednesday, October 08, 2008 Court upholds casino’s closure By Jujemay G. Awit Sun.Star Staff Reporter
A REGIONAL Trial Court (RTC) judge affirmed the validity of the Cebu City Government’s closure order against a casino at Rajah Park Hotel.
Plaintiffs Waz Lian Management Philippines Inc. (WLMPI) and Myall Group Limited (MGL) did not have a “cause of action” against the City Government, and was the wrong party to file the civil case for nullity of closure order.
“This case is not prosecuted in the name of the real party in interest, which is Pagcor (Philippine Amusement and Gaming Corp.),” read a part of the 15-page order of Judge Sylva Aguirre-Paderanga of Branch 16. She was asked to inhibit from handling the case by the plaintiffs, but she had already signed the order by then.
MGL owns majority of WLMPI, which is among the corporations that operate and trade slot machine arcades in the Philippines. They asked the court to order a status quo so that operations of the VIP Club casino can resume while the court hears their petition for a mandatory injunction.
But Judge Paderanga did not just deny the application for status quo; she dismissed the civil suit as well.
Named respondents were Cebu City Mayor Tomas Osmeña and Acting City Attorney Rodolfo Golez.
Petitioners believe they have the right to question the closure of the casino because they have substantial interest over the business and will suffer as a result of the closure.
During a hearing last Sept. 16, about 15 employees of the slot machine lounge observed the proceedings inside Paderanga’s sala.
Lawyer Felix Chan, representing WLMPI and MGL, asked the employees to stand before Paderanga and invoked “humanitarian grounds” in a bid to sway the law to their side.
The plaintiffs also anchored their case on a charter, Presidential Decree 1869, granted to Pagcor extending its term by another 25 years. The plaintiffs believe the casino’s operation is coterminous with Pagcor.
‘Damage without wrong’
The City Government disagreed, stating that Pagcor did not authorize WLMPI and MGL to file the case.
The court agreed with the defendants.
While the plaintiffs claimed that about 50 employees have been affected by the closure, the court described it as a “damage without wrong.”
“The plaintiffs are caught in a situation in which they suffered losses for which there is no legal remedy,” the order also said.
WLMPI and MGL also lamented they have since invested P210,562,972 for technical facilities and equipment of the casino.
They noted that the earlier consent the mayor gave should have been extended with the charter extension of Pagcor.
But Paderanga explained that PD 1869 still provides terms and conditions.
One such provision reads, “The corporation shall obtain consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations.”
The VIP Club has been operational since 2003. It was padlocked on Osmeña’s orders last Sept. 19, following earlier show-cause and closure orders. The casino failed to secure a mayor’s permit.
While Paderanga’s order in favor of the City Government was dated Oct. 6, it was only released to the parties yesterday. Incidentally, the plaintiffs also filed a motion for inhibition against Judge Paderanga, according to RTC Branch 16’s clerk of court.
