8/22/23, 4:26 PM Kilosbayan v. Guingona | ulandi.

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24th April 2012 Kilosbayan v. Guingona

Facts:
This is a special civil action for prohibition and injunction, with a prayer for a
temporary restraining order and preliminary injunction which seeks to prohibit and
restrain the implementation of the Contract of Lease executed by the PCSO and the
Philippine Gaming Management Corporation in connection with the on-line lottery
system, also know as lotto.
[]
Petitioners strongly opposed the setting up of the on-line lottery system on the basis
of serious moral and ethical considerations. It submitted that said contract of lease
violated Section 1 of R. A. No. 1169 [http://philippinelaw.info/statutes/ra1169.html] , as
amended by B. P. Blg. 42 [http://philippinelaw.info/statutes/bp42.html] .

Respondents contended, among others, that, the contract does not violate the
Foreign Investment Act of 1991; that the issues of wisdom, morality and propriety of
acts of the executive department are beyond the ambit of judicial reviews; and that
the petitioners have no standing to maintain the instant suit.

ISSUES:
1. Whether or not petitioners have the legal standing to file the instant petition.
2. Whether or not the contract of lease is legal and valid.

RULING: As to the preliminary issue, the Court resolved to set aside the procedural
technicality in view of the importance of the issues raised. The Court adopted the
liberal policy on locus standi to allow the ordinary taxpayers, members of Congress,
and even association of planters, and non-profit civic organizations to initiate and
prosecute actions to question the validity or constitutionality of laws, acts, decisions,
or rulings of various government agencies or instrumentalities.

As to the substantive issue, the Court agrees with the petitioners whether the
contract in question is one of lease or whether the PGMC is merely an independent
contractor should not be decided on the basis of the title or designation of the
contract but by the intent of the parties, which may be gathered from the provisions
of the contract itself. Animus homini est anima scripti. The intention of the party is
the soul of the instrument.

Therefore the instant petition is granted and the challenged Contract of Lease is
hereby declared contrary to law and invalid.

Posted 24th April 2012 by ulandi

Labels: Constitutional Law I, Political Law

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