Pagcor ordered to pay jai alai firm P1.56-B

A Manila court has ordered the Philippine Amusement and Gaming Corp. (Pagcor) to return the P1.56 billion a private firm paid for the shelved fronton operation deal for the jai alai game.

Judge Romulo Lopez of the Manila Regional Trial Court (RTC) Branch 34 found merit in the civil case filed by the Belle Jai Alai Corp. and Filipinas Gaming Entertainment Totalizator Corp. against Pagcor and the Department of the Interior and Local Government (DILG).

"Wherefore the judgment is hereby rendered in favor of the plaintiff and against the defendants ordering the defendant to return the P1,562,145,661.87, the pre-operating expenses and/or investment, including the goodwill money given by the plaintiff to the defendant," Lopez said in an eight-page ruling.

It was not clearly explained in Lopez’s decision, however, why the DILG was included in the case.

It can be recalled that Belle entered into an agreement with Pagcor that would allow it to operate a jai alai fronton using the franchise of the government-owned firm.

Pagcor was supposed to act as managing partner while Belle, a Filipino-owned firm, would be the investor.

Under the agreement, the plaintiff provided the defendant with the funding, facilities, equipment and technical services necessary for the operation of the jai alai business in Harrison Plaza, Manila. In return, the plaintiff was to receive a one-third share of the profits.

Unfortunately, the agreement was declared null and void by the Supreme Court on Nov. 29, 2000 upon the petition by Malabon-Navotas Rep. Ricky Sandoval, who questioned Pagcor’s authority to grant Belle a franchise.

Since the fronton did not materialize, Belle decided to ask Pagcor to reimburse the money it invested. Pagcor refused, prompting Belle to file a civil suit against it.

"The court holds that the defendant is not entitled to what was given by the plaintiff in compliance with its undertaking under the voided contract. Hence, the defendant must return the same," Lopez said.

For its part, Pagcor, though its lawyer Dic Consolacion, told The STAR that Lopez’s decision has been elevated to the Court of Appeals because Pagcor filed a motion for reconsideration.

Consolacion is hopeful the CA justices will consider the points raised by Pagcor on Belle’s claim, including the issue of returning the goodwill money given by Belle to Pagcor. "It’s goodwill money, why do we have to return it?"