Gregorio Ortega, Tomas del Castillo, Jr. and Benjamin Bacorro v.

CA, SEC and Joaquin

Misa
G.R. o. !"#$%& Jul' (, !##)
*acts+
Ortega, t,en a senior -artner in t,e la. /irm Bito, Misa, and 0o1ada .it,dre. in
said /irm.
2e /iled .it, SEC a -etition /or dissolution and liquidation o/ -artners,i-.
SEC en 3anc ruled t,at .it,dra.al o/ Misa /rom t,e /irm ,ad dissolved t,e
-artners,i-. Reason+ since it is -artners,i- at .ill, t,e la. /irm could 3e
dissolved 3' an' -artner at an' time, suc, as 3' .it,dra.al t,ere/rom,
regardless o/ good /ait, or 3ad /ait,, since no -artner can 3e /orced to continue
in t,e -artners,i- against ,is .ill.
4ssue+
!. 5O t,e -artners,i- o/ Bito, Misa 6 0o1ada 7no. Bito, 0o1ada, Ortega 6
Castillo8is a -artners,i- at .ill9
$. 5O t,e .it,dra.al o/ Misa dissolved t,e -artners,i- regardless o/ ,is good or
3ad /ait,9
2eld+
!. :es. T,e -artners,i- agreement o/ t,e /irm -rovides t,at ;<t=,e -artners,i- s,all
continue so long as mutuall' satis/actor' and u-on t,e deat, or legal inca-acit'
o/ one o/ t,e -artners, s,all 3e continued 3' t,e surviving -artners.;
$. :es. An' one o/ t,e -artners ma', at ,is sole -leasure, dictate a dissolution o/
t,e -artners,i- at .ill 7e.g. 3' .a' o/ .it,dra.al o/ a -artner8. 2e must,
,o.ever, act in good /ait,, not t,at t,e attendance o/ 3ad /ait, can -revent t,e
dissolution o/ t,e -artners,i- 3ut t,at it can result in a lia3ilit' /or damages
>ilos3a'an vs Guingona
GR o. !!((?), Ma' ), !##%
*ACTS+
@ursuant to Section ! o/ t,e c,arter o/ t,e @CSO 7R.A. o. !!A#, as amended 3' B.@.
Blg. %$8 .,ic, grants it t,e aut,orit' to ,old and conduct Bc,arit' s.ee-staCes races,
lotteries and ot,er similar activities,; t,e @CSO decided to esta3lis, an onDline lotter'
s'stem /or t,e -ur-ose o/ increasing its revenue 3ase and diversi/'ing its sources o/
/unds. Sometime 3e/ore Marc, !##(, a/ter learning t,at t,e @CSO .as interested in
o-erating an onDline lotter' s'stem, t,e Berja'a Grou- Ber,ad, Ba multinational com-an'
and one o/ t,e ten largest -u3lic com-anies in Mala'sia,; B3ecame interested to o//er its
services and resources to @CSO.; As an initial ste-, Berja'a Grou- Ber,ad 7t,roug, its
individual nominees8 organi1ed .it, some *ili-ino investors in Marc, !##( a @,ili--ine
cor-oration Cno.n as t,e @,ili--ine Gaming Management Cor-oration 7@GMC8, .,ic,
B.as intended to 3e t,e medium t,roug, .,ic, t,e tec,nical and management services
required /or t,e -roject .ould 3e o//ered and delivered to @CSO.;
Be/ore August !##(, t,e @CSO /ormall' issued a Request /or @ro-osal 7R*@8 /or t,e
0ease Contract o/ an onDline lotter' s'stem /or t,e @CSO. On !) August !##(, @GMC
su3mitted its 3id to t,e @CSO. On $! Octo3er !##(, t,e O//ice o/ t,e @resident
announced t,at it ,ad given t,e res-ondent @GMC t,e goDsignal to o-erate t,e countr'Es
onDline lotter' s'stem and t,at t,e corres-onding im-lementing contract .ould 3e
su3mitted not later t,an & ovem3er !##( B/or /inal clearance and a--roval 3' t,e C,ie/
EFecutive.;
On % ovem3er !##(, >40OSBA:A sent an o-en letter to @resident *idel G. Ramos
strongl' o--osing t,e setting u- o/ t,e onDline lotter' s'stem on t,e 3asis o/ serious moral
and et,ical considerations. Considering t,e denial 3' t,e O//ice o/ t,e @resident o/ its
-rotest and t,e statement o/ Assistant EFecutive Secretar' Renato Corona t,at Bonl' a
court injunction can sto- MalacaHang,; and t,e imminent im-lementation o/ t,e Contract
o/ 0ease in *e3ruar' !##%, >40OSBA:A, .it, its coD-etitioners, /iled on $& Januar' !##%
t,is -etition.
@etitioner claims t,at it is a nonDstocC domestic cor-oration com-osed o/ civicDs-irited
citi1ens, -astors, -riests, nuns, and la' leaders. T,e rest o/ t,e -etitioners, eFce-t
Senators *reddie 5e33 and 5ig3erto TaHada and Re-resentative JoCer @. Arro'o, are
suing in t,eir ca-acities as mem3ers o/ t,e Board o/ Trustees o/ >40OSBA:A and as
taF-a'ers and concerned citi1ens. Senators 5e33 and TaHada and Re-resentative
Arro'o are suing in t,eir ca-acities as mem3ers o/ Congress and as taF-a'ers and
concerned citi1ens o/ t,e @,ili--ines. T,e -u3lic res-ondents, mean.,ile allege t,at t,e
-etitioners ,ave no standing to maintain t,e instant suit, citing t,e CourtEs resolution in
Galmonte vs. @,ili--ine C,arit' S.ee-staCes O//ice.
4SSIES+
!. 5,et,er or not t,e -etitioners ,ave locus standi
$. 5,et,er or t,e Contract o/ 0ease in t,e lig,t o/ Section ! o/ R.A. o. !!A#, as amended
3' B.@. Blg. %$, .,ic, -ro,i3its t,e @CSO /rom ,olding and conducting lotteries Bin
colla3oration, association or joint venture .it, an' -erson, association, com-an' or entit',
.,et,er domestic or /oreign.; is legal and valid.
2E0J+
5e /ind t,e instant -etition to 3e o/ transcendental im-ortance to t,e -u3lic. T,e
rami/ications o/ suc, issues immeasura3l' a//ect t,e social, economic, and moral .ellD
3eing o/ t,e -eo-le even in t,e remotest 3aranga's o/ t,e countr' and t,e counterD
-roductive and retrogressive e//ects o/ t,e envisioned onDline lotter' s'stem are as
staggering as t,e 3illions in -esos it is eF-ected to raise. T,e legal standing t,en o/ t,e
-etitioners deserves recognition and, in t,e eFercise o/ its sound discretion, t,is Court
,ere3' 3rus,es aside t,e -rocedural 3arrier .,ic, t,e res-ondents tried to taCe
advantage o/.
T,e language o/ Section ! o/ R.A. o. !!A# is indis-uta3l' clear. T,e @CSO cannot s,are
its /ranc,ise .it, anot,er 3' .a' o/ colla3oration, association or joint venture. eit,er can
it assign, trans/er, or lease suc, /ranc,ise. 5,et,er t,e contract in question is one o/
lease or .,et,er t,e @GMC is merel' an inde-endent contractor s,ould not 3e decided on
t,e 3asis o/ t,e title or designation o/ t,e contract 3ut 3' t,e intent o/ t,e -arties, .,ic,
ma' 3e gat,ered /rom t,e -rovisions o/ t,e contract itsel/. Animus ,ominis est anima
scri-ti. T,e intention o/ t,e -art' is t,e soul o/ t,e instrument.
BusOrg - sjbPrior | 1
Indou3tedl', /rom t,e ver' ince-tion, t,e @CSO and t,e @GMC mutuall' understood t,at
an' arrangement 3et.een t,em .ould necessaril' leave to t,e @GMC t,e tec,nical,
o-erations, and management as-ects o/ t,e onDline lotter' s'stem .,ile t,e @SCO .ould,
-rimaril', -rovide t,e /ranc,ise. T,e soDcalled Contract o/ 0ease is not, t,ere/ore, .,at it
-ur-orts to 3e. 5oven t,erein are -rovisions .,ic, negate its title and 3etra' t,e true
intention o/ t,e -arties to 3e in or to ,ave a joint venture /or a -eriod o/ eig,t 'ears in t,e
o-eration and maintenance o/ t,e onDline lotter' s'stem.
5e t,us declare t,at t,e c,allenged Contract o/ 0ease violates t,e eFce-tion -rovided /or
in -aragra-, B, Section ! o/ R.A. o. !!A#, as amended 3' B.@. Blg. %$, and is, t,ere/ore,
invalid /or 3eing contrar' to la.. T,is conclusion renders unnecessar' /urt,er discussion
on t,e ot,er issues raised 3' t,e -etitioners.
BusOrg - sjbPrior | 2