VACC chairman Dante Jimenez said they will fight for the case “until the last breath of exhausting the legal process,” GMA News reported. The CA Former 15th Division ratified its February 28, 2017 ruling after dismissing for lack of merit the VACC’s motion for reconsideration.
"Petitioner has not shown any cogent or compelling reason to warrant a reversal or even a modification of the aforesaid resolution. Hence, the dismissal of the petition for certiorari and prohibition must be sustained," CA Associate Justice Ramon Garcia said.
According to the ruling, the VACC violated the principle of hierarchy of courts.
"The hierarchy of courts serves as a general determinant of the appropriate forum for appeals and petitions for extraordinary writs. The principle, as a rule, requires that recourse must be first made to the lower-ranked court exercising concurrent jurisdiction with a higher court," the CA said.
“The City of Manila’s execution of the lease contract with Oceanville Hotel and Spa does not fall within the ambit of judicial, quasi-judicial or ministerial function as the same is within its prerogative, powers and authority in the exercise of its executive function. On this court alone, certiorari and prohibition will not lie,” the CA said.
Signed in 2014, the 25-year lease contract allows Oceanville to sublease any part of the nearly 13,000-square meter Army and Navy Club located along Roxas Boulevard in Manila.
Ocenaville entered into memorandum of agreement with Vanderwood Management Corporation on the sublease of a portion of the facility for 20 years from November 2014 to November 2034.
Vanderwood started constructing a casino gaming facility which it subleased to the Philippine Amusement and Gaming Corporation (PAGCOR) for 15 years.
The PAGCOR had paid Vanderwood P234 million in advance for using a portion of the property.
Vanderwood had insisted there was nothing wrong in the lease contract with PAGCOR, as advanced rental payments are common in standard lease contracts.
It said the casino “sufficiently caters to PAGCOR’s needs and is tailor-made for PAGCOR’s accommodation.”
In its petition, the VACC cited a notice of disallowance and audit observation memorandum from the Commission on Audit (COA) on PAGCOR's advanced payment to Vanderwood.
The state auditors noted the premises to be leased were non-existent when PAGCOR and Vanderwood executed the lease contract on July 31, 2015.
The VACC also underscored the importance of preserving the historical identity of the cultural property.