KILOSBAYAN VS.

MORATO

Facts: On Jan. 25, 1995, PCSO and PGMC signed an Equipment

Lease Agreement (ELA) wherein PGMC leased online lottery
equipment and accessories to PCSO. (Rental of 4.3% of the gross
amount of ticket or at least P35,000 per terminal annually). 30%
of the net receipts is allotted to charity. PCSO is to employ its own
personnel and responsible for the facilities. Upon the expiration of
lease, PCSO may purchase the equipment for P25 million.

On Feb. 21, 1995, a petition was filed to declare ELA invalid because it is
the same as the Contract of Lease. Petitioner contends that ELA is violative
of PCSO's charter. Also, the same is violative of the law regarding public
bidding. It violates Sec. 2(2) of Art. 9-D of the 1987 Constitution. Standing
can no longer be questioned because it has become the law of the case.

However, respondents contends that ELA is different from the Contract of

Lease. The power to determine if ELA is advantageous is vested in the
Board of Directors of PCSO. They also contends that petitioners do not
have a legal standing because they were not parties to the contract.

Issue: Whether or not the petitioner has the legal standing to

question the validity of the contract in this case

Held: No. Petitioners are not the real parties to the contract. The
court held that the previous is different from the present case.
The law of the case does not apply, so the ruling in the first case
does not apply to the case now. Moreover, petitioners did not
show what particular interest they have for bringing the suit.
There was no allegation of misuse of public funds to make the
action a public one.