G.R. No. 123146 - People vs. Buli-e

In Civil Case No. 88-45660, Branch 40, RTC Manila, Judge Villarin by decision dated 9 September 1988 ordered Mayor Lim to issue a permit/license under Manila Ordinance No. 7065 to Associated Development Corporation (ADC) to operate a jai-alai fronton.
The City of Manila appealed to the Court of Appeals but withdrew that appeal on 9 February 1989. Execution of the RTC decision was sought by ADC in 1994; Judge Pacquing issued orders on 28 March, 11 April and 20 April 1994 directing Mayor Lim to comply.
Mayor Lim filed a petition for certiorari under G.R. No. 115044, which the First Division dismissed on 1 September 1994 for lack of abuse of discretion and as the questions of law were not raised at trial.

On 13 September 1994, Executive Secretary Guingona directed the Games and Amusements Board (GAB) to hold in abeyance or withdraw any authority issued to ADC pending resolution of questions on (a) the constitutionality of P.D. 771; (b) the validity and duration of the municipal franchise; and (c) the City’s power post-E.O. 392.
On 15 September 1994, ADC filed Civil Case No. 94-71656 in RTC Manila, Branch 4, for prohibition, mandamus and injunctive relief against Executive Secretary Guingona and GAB Chairman Sumulong, securing a temporary restraining order the same day.
On 16 September 1994, the Republic of the Philippines (through GAB) moved to intervene in G.R. No. 115044; the First Division referred the case to the Court En Banc on 19 September 1994.

Judge Reyes of RTC Manila, Branch 4, converted the temporary restraining order into a writ of preliminary injunction and on 19 October 1994 granted a writ of preliminary mandatory injunction compelling issuance of authority to ADC.
Executive Secretary Guingona and GAB Chairman Cepeda filed G.R. No. 117263 on 11 October 1994, assailing Reyes’s orders for lack of jurisdiction and grave abuse of discretion. The Court En Banc consolidated G.R. 115044 and G.R. 117263 for hearing on 10 November 1994.
The factual matrix includes:

Republic Act No. 409 (1949) delegated city licensing and permitting of gaming to Manila’s Municipal Board under Section 18(jj).
E.O. No. 392 (1951) transferred regulatory power over jai-alai to GAB.
Republic Act No. 954 (1953) forbidden bets except by an operator with a legislative franchise.
Ordinance No. 7065 (1971) authorized the Mayor to permit ADC to establish and operate jai-alai, without fixed duration.
P.D. No. 771 (1975) revoked local governments’ power to grant gambling franchises and permits and expressly cancelled all existing local gambling franchises.
P.D. No. 810 (1975) granted a congressional franchise to Philippine Jai-Alai and Amusement Corporation, later revoked by E.O. No. 169 (1987).

Whether the Republic of the Philippines may properly intervene in G.R. No. 115044.
Whether ADC possesses a valid and subsisting franchise under law to operate jai-alai in Manila.
Whether Presidential Decree No. 771 is valid and constitutional in revoking local gambling franchises and permits.
Whether Judges Pacquing and Reyes committed grave abuse of discretion or acted without jurisdiction in issuing orders and writs compelling the issuance or retention of permits to ADC.