Magtajas vs Pryce Properties, Inc, GR

No. 111097, July 20, 1994

Facts: In 1992, representatives from
PPC made representations with the
Pagcor on the possibility of setting up
a casino in Pryce Plaza Hotel in
Cagayan de Oro City. On November
1992, the parties executed a contract
of lease involving the ballroom of the
hotel which would be converted into a
casino.
Way back in 1950, the Sangguniang
Panglungsod of CDO passed Resolution
2295 prohibiting the establishment of
a gambling casino. Resolution 2673,
dated October 19, 1992, reiterated this
prohibition. On December 7, 1992,
Ordinance No. 3353 was enacted
prohibiting the issuance of business
permits for the operation of a casino.
On January 4, 1993, Ordinance 337593
was
passed
prohibiting
the
operation of
casinos.
PPC filed a petition for prohibition with
preliminary injunction against CDO
before the CA. It prayed for the
declaration of unconstitutionality of
Ordinance 3353. Pagcor intervened
claiming that Ordinance 4475 was
violative of the nonimpairment of
contracts and EP clauses. The CA
declared
the
ordinances
unconstitutional and void.
Issue: WON the Sangguniang
Panglungsod has the authority to enact
said ordinances
Held: No
o

Tests of a valid ordinance to

be valid, it must conform to the
following substantive
requirements
o
It must not contravene
the Constitution or any
statute.
o
It must not be unfair or
oppressive.

o
o
o
o

It must not be partial or

discriminatory.
It must not prohibit but
regulate trade.
It must not
be unreasonable.
It must be general and
consistent with public
policy.

The rationale of the

requirement that the ordinances
should not contravene a statute
is obvious as municipal
governments are ONLY AGENTS
of the national government and
that the delegate cannot be
superior to the principal or
exercise powers higher than
those of the latter.
Implied repeals it is a familiar
rule that implied repeals are not
lightly presumed in the absence
of a clear and unmistakable
showing of such intention.
A contravention of a law is not
necessarily a contravention of
the constitution.