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THE COURT has challenged Waz Lian Management Phil. Inc.’s (WLMPI) right to question the order of Cebu City Mayor Tomas Osmeña to close the VIP Club Casino at the Rajah Park Hotel.
Regional Trial Court Judge Sylva Paderanga of branch 16 observed that while WLMPI leased out the slot machines that were used in the VIP Club, the establishment was operated by the Philippine Amusement and Gaming Corp. (Pagcor).
“Waz Lian Management is the lessor. So what’s is the right of WLMPI to question the closure if they are not the operator?” said Judge Paderanga during yesterday’s court hearing.
WLMPI filed a civil case against the mayor, demanding P2.5 million in damages and litigation expenses for the closure of the slot machine establishment last Sept. 19. The company alleged that the mayor had no authority to close the place.
The company also filed a petition for nullity of closure and injunction. They asked that the establishment be allowed to resume operations while the case was heard in court.
WLMPI, which supplies and sets up slot machines for establishments all over the country, said that the closure of the VIP Club cost it millions in investments.
The company argued that under Presidential Decree 771, a government-owned and controlled operation is exempted from securing permits from the government of a highly urbanized city.
Osmeña ordered the closure of the VIP Club for operating without a business permit, sanitary permit, and a certificate to operate.
But lawyer Ralph Sevilla, counsel of Osmeña and City Attorney Rodolfo Golez, who was also named as a respondent, pointed out to the court that the real interest involved in the closure was Pagcor, which operated the VIP Club, not WLMPI, which merely supplied slot machines to the casino.
Lawyer Felix Chan, counsel of WLMPI, justified the company’s interest by saying it invested in everything needed to run the casino, from its construction to the operation of slot machines.
Chan also said that the VIP Club had at least 50 employees, whose jobs were lost due to the closure.
“The rights of the petitioners should be protected. They are duly affected by the closure. This is the linking point of our grievances,” said Chan.
At least 16 VIP Club employees attended the hearing yesterday.
Sevilla, however, said what happened to the employees was not the issue.
He also said that WLMPI had no authorization from Pagcor to file the case.
The court was not convinced of WLMPI’s capacity to file the case.
Judge Paderanga said the court could not decide on the petition to reopen the VIP Club unless WLMPI can justify its right to question the closure order.
“Before the court can grant relief, you have to establish your right for it,” said Paderanga.
The judge said she may decide on whether or not to grant the status quo after both parties submit their memorandums within four days.
Sevilla also pointed out that nowhere in WLMPI’s petition to have the VIP Club reopen was it indicated that the establishment was approved by the Department of Tourism and Pagcor.
Sevilla also cited the amended Presidential Decree 1869 or the Pagcor Charter, which states that slot machines or any other form of gambling was only allowed in three-stars hotels and resorts or better that are accredited by the DOT and the concerned local government unit.
Sevilla said the Raja Park Hotel was not a three-star establishment.
The lawyer also said that WLMPI had not been paying taxes to the government, essentially having gone to court without “clean hands” and in bad faith.
Lawyer Benjamin Militar, also counsel of Osmeña and Golez in their personal capacities, said that the mayor, under his regulatory powers, had the right to ask for permits and inquire the nature of a business and close it down if it did not comply.
