Jai alai operator sues Alfredo Lim for closure

The franchise holder of jai alai in Malate sued the Philippine Amusement and Gaming Corp. (Pagcor) for breach of contract following the closure of the Harrison Plaza fronton.

The Filipinas Gaming Entertainment Totalizator Corp. (Filgame) said the closure of the fronton by Interior Secretary Alfredo Lim last Oct. 10 has caused it to lose P1.5 million a day.

Lim, who acted on President Estrada’s order on Oct. 10 to stop all state-sponsored gambling, and the Department of the Interior and Local Government (DILG) have also been named respondents.

Pagcor’s new suit is the second filed by a private firm with which it entered into a partnership, the first being the Sports and Games Entertainment Corp. over the suspension of the on-line casino. Sage has been granted a 20-day restraining order by a Manila court.

Filgame, whose contract with Pagcor included Belle Corp., said the state-run gaming corporation has a duty to honor the contract since both private firms had to cough up P1.7 billion in investments to run the Basque game.

Filgame filed in the Manila Regional Trial Court cases for specific performance, temporary mandatory injunction, damages, and a writ of injunction last Monday alleging the abrupt closure of the fronton violated its right to due process.

Its 19-page petition also made mention of giving Pagcor P200 million in "goodwill money" but its purpose was not explained.

Mr. Estrada issued the memorandum a week after the exposé by his estranged drinking buddy Gov. Luis Singson that he had been receiving millions in jueteng payoffs in the last two years. The governor also revealed the gambling habits of the Chief Executive.

Aside from jai alai and on-line casino, also put on hold was the controversial Bingo 2-Ball, the purported legal version of jueteng over which turf Singson had fought with another presidential friend, Charlie "Atong" Ang.

Filgame’s petition was raffled off to Judge Romulo Lopez of Manila Regional Trial Court Branch 34. A hearing was conducted yesterday.

Apart from the constitutional guarantee of due process, Filgame, headed by Cesar Manalo, also invoked the non-impairment clause of the 1987 Constitution regarding the passage of laws that affects contracts.

"No man is above the law. Neither Pagcor, DILG, nor even the President of the Philippines can take the law into his own hands by unilaterally, whimsically, and arbitrarily abrogating a contract, especially after having derived great benefit from it. Pagcor, DILG, and the Chief Executive must respect and observe the proper judicial process," said Filgame.

The jai alai operators said Pagcor did not spend a single centavo in the venture except to provide the fronton site. It said Pagcor has since earned a net amount of about P197 million while Filgame received a share of some P173 million or just 10 percent of its total investment.

Filgame said the closure by DILG and Pagcor’s failure to act on it amount to "unilateral repudiation" and "complete derogation" of the contract.

It also argued that Pagcor does not fall under the ambit of the executive as per the Administrative Code, and that Lim had no authority to enforce the memorandum.

Filgame expects the court to order the reopening of the fronton as the case remains pending.