Kilosbayan V Guingona

ARTICLE VIII Judicial Department

SECTION 5. The Supreme Court shall have the following powers:

(1) Exercise original jurisdiction over cases affecting ambassadors, other public
ministers and consuls, and over petitions for certiorari, prohibition, mandamus, quo
warranto, and habeas corpus.

(2) Review, revise, reverse, modify, or affirm on appeal or certiorari, as the law or
the Rules of Court may provide, final judgments and orders of lower courts in:

(a) All cases in which the constitutionality or validity of any treaty, international
or executive agreement, law, presidential decree, proclamation, order, instruction,
ordinance, or regulation is in question.
(b) All cases involving the legality of any tax, impost, assessment, or toll, or any
penalty imposed in relation thereto.
(c) All cases in which the jurisdiction of any lower court is in issue.
(d) All criminal cases in which the penalty imposed is reclusion perpetua or
higher.
(e) All cases in which only an error or question of law is involved.

Facts: The PCSO decided to establish an online lottery system for the purpose of increasing its revenue
base and diversifying its sources of funds. The Berjaya Group Berhad, with its affiliate, the International
Totalizator Systems, Inc. became interested to offer its services and resources to PCSO.

PGMC and PCSO, through Teofisto Guingona, Jr. and Renato Corona, Executive Secretary and Asst.
Executive Secretary respectively, alleged that PGMC is not a collaborator but merely a contractor for a
piece of work, i.e., the building of the network; that PGMC is a mere lessor of the network it will build as
evidenced by the nature of the contract agreed upon, i.e., Contract of Lease.

Issue: Whether the petitioners have locus standi (legal standing)

Held: The petitioners have locus standi due to the transcendental importance to the public that the case
demands.
Petitioners as tax payers claim that the issue immeasurably affects the social, economic and moral
well-being of the people and the counterproductive and regressive effects envisioned in online lottery
system.
The legal standing then of the petitioners deserves recognition. Thus, the court invalidated the
contact for the operation of lottery.