CA junks petition to stop conversion of Army and Navy Club

The Court of Appeals (CA) has junked a petition seeking to stop the conversion of the historic Army and Navy Club into a casino gaming facility and a five-star boutique hotel.

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In a resolution dated February 28, the CA 15th Division dismissed the petition of the Volunteers Against Crime and Corruption (VACC) for violating the principle of hierarchy of courts.

The appellate court said while it has concurrent jurisdiction with the Regional Trial Court in issuing a writ of certiorari, it can only be done when there are special extraordinary or compelling reasons.

"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.

Thus, if the hierarchy of courts is followed, the petition should have been filed with the RTC.

The CA added that the deal entered into by the Manila City government and Oceanville Hotel and Spa Corporation for the redevelopment of the Army and Navy Club, supported by National Historical Commission of the Philippines (NHCP), cannot be considered a judicial, quasi-judicial or ministerial action that can be a subject of a petition for certiorari, which lays down grave of abuse of discretion as ground.

“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.

The CA said the VACC should have filed a civil case for annulment of contract or injunction before the RTC.

Signed in 2014, the 25-year lease contract between the Manila City government and Oceanville also allows the latter to sublease any part of the nearly 13,000-square meter Army and Navy Club located along Roxas Boulevard in Pasay City.

Oceanville then entered into a memorandum of agreement with Vanderwood Management Corporation for the sublease of a portion of the facility for 20 years or from November 2014 to November 2034.

Vanderwood then started the construction of the casino gaming facility which it then subleased to the Philippine Amusement and Gaming Corporation (PAGCOR) for a period of 15 years.

The PAGCOR had already paid Vanderwood P234 million advance rental for the use of a portion of the property.

Earlier, Vanderwood insisted that there is nothing wrong in its lease contract with PAGCOR, as advance rental payments is common in standard lease contracts.

Vanderwood said the casino “sufficiently caters to PAGCOR’s needs and are tailor-made for PAGCOR’s accommodation.”

Once a watering hole of American military officers during the colonial period, the Army and Navy Club was declared a national historical landmark in 1991.

In its petition, the VACC cited a notice of disallowance and audit observation memorandum from the Commission on Audit (COA) on PAGCOR's advance payment to Vanderwood.

The state auditors noted that premises to be leased was not yet existing when PAGCOR and Vanderwood executed their contract of lease on July 31, 2015.

The VACC also underscored the importance of preserving the historical identity of the cultural property.

The VACC said it appealed the decision on Tuesday.

"VACC is raising a constitutional issue that involves a matter of transcendental importance (i.e., whether a declared historical site like the Army Navy Club can be converted into a mere boutique hotel with gaming and casino facilities)," the group said in a statement. — BM/BAP, GMA News