Title
Manila Jockey Club, Inc. vs. Games and Amusements Board
Case
G.R. No. L-12727
Decision Date
Feb 29, 1960
Manila Jockey Club challenged GAB's allocation of Sundays for PCSO's sweepstakes races, claiming vested rights. SC upheld GAB's discretion, ruling no vested rights to unreserved days and no deprivation of property under voluntary lease agreements.

Case Digest (G.R. No. L-12727)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • Manila Jockey Club, Inc. (the petitioner/appellant) filed a petition for declaratory relief in the Court of First Instance of Manila (Civil Case No. 31274).
    • Philippine Racing Club, Inc. intervened as a party in interest with the court’s permission.
  • Relief Sought
    • The petitioner and intervenor requested that judgment be rendered against the Games and Amusements Board (GAB), Philippine Charity Sweepstakes Office (PCSO), and Executive Secretary Fortunato de Leon, praying for two main reliefs:
      • An interpretation of Republic Acts No. 309 and No. 1502 which would:
        • Ensure that the 30 Sundays—previously unreserved for charitable institutions and reserved for private racing clubs under Section 4 of RA 309—remain for the private entities.
        • Allocate the 6 additional sweepstakes races authorized under RA 1502 to 6 of the 12 Saturdays (or any day other than Sunday, Saturday, and legal holidays) not reserved for any private entity or particular charitable institution.
      • A declaration that the PCSO does not have the authority to appropriate or use the petitioner’s race tracks and equipment without its consent, nor can the respondents compel such use under threat of license revocation.
  • Lower Court Decision
    • On July 5, 1957, the lower court rendered a decision which:
      • Held that there was no deprivation of property without due process since the PCSO was using the premises and equipment under separate, voluntary lease contracts with corresponding rental payments.
      • Authorized the PCSO to hold one regular sweepstakes draw and races once a month on a Sunday not reserved for designated charitable institutions, thereby reducing the number of Sundays allotted to private licensed entities.
  • Statutory Framework and Racing Day Allocations
    • The statutory allocation of racing days was set out in Section 4 of Republic Act No. 309 (as amended by RA No. 983), specifying:
      • Sundays:
        • 12 Sundays for the Philippine Anti-Tuberculosis Society.
        • 6 Sundays for the PCSO.
        • 4 Sundays for the White Cross, Inc.
        • 1 Sunday for the Grand Derby Race of the Philippine Anti-Tuberculosis Society.
        • A remainder of 29 (or 30 in leap years) Sundays for private licensed entities by the GAB.
      • Saturdays:
        • 12 Saturdays for the Philippine Anti-Tuberculosis Society.
        • 4 Saturdays for the White Cross, Inc.
        • 24 Saturdays for private individuals and entities (subject to the GAB’s determination).
        • 12 Saturdays reserved for races authorized by the President for charitable, relief, or civic purposes.
      • Legal Holidays:
        • All legal holidays (except Thursday and Friday of Holy Week, July 4, and December 30) were reserved for private licensed entities.
  • Republic Act No. 1502, approved on June 16, 1956, increased the number of sweepstakes races by six without specifying the days for such races.
  • Contentions and Controversies
    • Appellants contended regarding the proper allocation of the six additional racing days:
      • The extra races should either be drawn from the 12 Saturdays reserved for the President for other charitable purposes or be scheduled on days other than Sunday, Saturday, and legal holidays.
    • Respondents maintained that:
      • Under Section 4 of RA 309, the unreserved Sundays available for private races were the only permissible source for the additional PCSO sweepstakes races.
      • The longstanding practice of holding sweepstakes races on Sundays supported the current allocation.
  • Legislative Debate and Interpretive Considerations
    • Appellants cited legislative debates during the discussion of House Bill No. 5732 (which became RA No. 1502), quoting statements by lawmakers (e.g., Congressmen Marcos and Abeleda) who suggested that if a sweepstakes race fell on a club race day, it should be inserted into that day.
    • The court observed that:
      • Legislative debates represent the views of individual members rather than a collective intention, and therefore, are generally inadmissible or unreliable for statutory interpretation.
      • The statute’s plain language must be adopted to give legal effect to the legislature’s intent.
  • Existing Practices and Contractual Arrangements
    • There was a long, continuous, and uniform practice of holding sweepstakes races on Sundays.
    • The PCSO’s use of the petitioner’s premises and equipment was under separate lease agreements with appropriate rental payments, addressing any due process concerns related to property use.

Issues:

  • Validity of the GAB’s Resolution
    • Whether the resolution reducing the number of Sundays available to private racing clubs to accommodate the six additional PCSO sweepstakes races is legally valid.
  • Allocation of the Six Additional Sweepstakes Races
    • Whether the additional races authorized under Republic Act No. 1502 should be held on unreserved Sundays or instead on Saturdays or another day not normally used for races.
  • Due Process and Property Rights
    • Whether compelling the petitioner to permit the use of its race tracks and equipment by the PCSO (through the allocation of additional racing days) constitutes a deprivation of property without due process of law.
  • Legitimacy of Relying on Legislative Debates
    • Whether legislative debates and individual statements by lawmakers can be used as a reliable aid in construing the intent and meaning of the statute regarding racing day allocations.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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