Tuesday, April 21, 2015

MAGTAJAS VS PRYCE PROPERTIES

Facts:
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.Civil organizations angrily denounced the project. Petitioners opposed the casino’s opening and enacted Ordinance No. 3353, prohibiting the issuance of business permit and cancelling existing business permit to the establishment for the operation of the casino, and Ordinance No. 3375-93, prohibiting the operation of the casino and providing a penalty for its violation.Respondents assailed the validity of the ordinances on the ground that they both violated Presidential Decree No. 1869. Petitioners contend that, pursuant to the Local Government Code, they have the police power authority to prohibit the operation of casino for the general welfare.
Issue:
WON the Ordinance Nos. 3353 and 3375-93 are valid.
Held:
No.CdO is empowered to enact ordinances for the purposes indicated in the LGC. However, 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.

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