Court dismisses petition to stop conversion of Army Navy Club

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The Court of Appeals (CA) has dismissed a petition which sought an injunction that would stop the conversion of the former Army Navy Club in Manila into a casino and boutique hotel.

Dismissed for violating the principle of hierarchy of courts was the petition filed by the Volunteers Against Crime and Corruption (VACC) against the Philippine Amusement and Gaming Corporation (PAGCOR), Manila City government, National Historical Commission of the Philippines (NHCP), Oceanville Hotel and Spa Corp., and Vanderwood Management Corp.

In a resolution written by Associate Justice Ramon R. Garcia, the CA said that the decision of the Manila City government to enter into an agreement with private entities for the development of the Army Navy Club and its approval by the NHCP cannot be considered a judicial, quasi-judicial or ministerial action that can be a subject of a petition for certiorari.

“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 ruled.

It said that while the appellate court has concurrent jurisdiction with the regional trial court (RTC) in issuing the writ of certiorari, direct resort is allowed only when there are special extraordinary or compelling reasons that justify the same.

“Unfortunately, the present petition for certiorari is bereft of any compelling reason or circumstance to warrant an exception to the rule,” it added.

It explained that in the VACC’s petition to nullify the agreement among respondents PAGCOR, City of Manila, NHCP, Oceanville Hotel and Spa Corp. and Vanderwood Management Corp. for the development of the Army Navy Club and to enjoin them from converting the said property into a boutique hotel and casino game facility, the proper remedy is to file a civil action for annulment of contract which falls under the jurisdiction of the trial courts.

“Wherefore, the instant petition for certiorari is hereby dismissed. Accordingly, this case is considered closed and terminated,” the CA ruled.

In 2014, the city government entered into a 25-year lease contract with Oceanville which was allowed to sublease any part of the Army Navy Club.

The NHCP then approved Oceanville’s redevelopment plan to renovate and restore the facility for the purpose of using the facility as a boutique hotel whose plan was also approved by the city government.

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

Vanderwood then started construction of a casino gaming facility which it then subleased to PAGCOR for a period of 15 years.

The Army Navy Club was built by the United States Army Corps of Engineers in 1911 and originally designed as a rest and recreation area for the exclusive use of American military personnel and civilians.