THC1108 - LEGAL ASPECTS IN TOURISM AND HOSPITALITY

Sec 2

City of Manila v. Judge Perfecto Laguio

Material Facts
Private respondent Malate Tourist Development Corporation (MTDC) is a corporation engaged
in the business of operating hotels, motels, hostels and lodging houses. On 28 June 1993, MTDC
filed a Petition for Declaratory Relief with Prayer for a Writ of Preliminary Injunction and/or
Temporary Restraining Order (RTC Petition) with the lower court impleading as defendants,
herein petitioners City of Manila, Hon. Alfredo S. Lim (Lim), Hon. Joselito L. Atienza, and the
members of the City Council of Manila (City Council). MTDC prayed that the Ordinance, insofar
as it includes motels and inns as among its prohibited establishments, be declared invalid and
unconstitutional.
An Ordinance was passed prohibiting the establishment or operation of businesses providing
certain forms of amusements, entertainment, services and facilities in the Ermita-Malate Are,
Prescribing penalties for Violation Thereof, and other Purposes.

Issues
Whether the Ordinance 7783 is valid or not for the exercise of police power.

Ruling of the Case

The Petition was denied and the lower court affirmed for the Ordinance to be null and void. The
exercise of police power by the local government is valid unless it violates the underlying law of
the land, or an act of the legislature, or unless it is against public policy or is unreasonable,
oppressive, partial, discriminating or in derogation of a common right.