Magtajas v. Pryce Properties Corp. (G.R. No.

111097)
Facts:
PAGCOR decided to expand its operations to Cagayan de Oro City. It leased a portion
of a building belonging to Pryce Properties Corporations, Inc., renovated & equipped the
same, and prepared to inaugurate its casino during the Christmas season.
Civil organizations angrily denounced the project. Petitioners opposed the casino’s
opening and enacted Ordinance No. 3353, prohibiting the issuance of business permit
and canceling existing business permit to the establishment for the operation of the
casino, and Ordinance No. 3375-93, prohibiting the operation of the casino and
providing a penalty for its violation.
Respondents assailed the validity of the ordinances on the ground that they both
violated Presidential Decree No. 1869. Petitioners contend that, pursuant to the Local
Government Code, they have the police power authority to prohibit the operation of
casino for the general welfare.

Issue:
Whether the Ordinances are valid.

Ruling:
No. Cagayan de Oro City, like other local political subdivisions, is empowered to enact
ordinances for the purposes indicated in the Local Government Code. It is expressly
vested with the police power under what is known as the General Welfare Clause now
embodied in Section 16.

Analysis:
General Welfare. — Every local government unit shall exercise the powers expressly
granted, those necessarily implied therefrom, as well as powers necessary, appropriate,
or incidental for its efficient and effective governance, and those which are essential to
the promotion of the general welfare.

CONCLUSION: Wherefore, the petition is denied.