Case digest : Caltex vs Palomar

Civil Code Article 8: Judicial decisions applying or interpreting the law shall form a part of the legal system.

Caltex (Philippines), Inc. Petitioner-appellee

Vs.

 Enrico Palomar, Postmaster General Respondent-appellant

Facts:                  

                    In 1960, the petitioner, Caltex (Philippines) Inc., launched a promotional scheme called "Caltex Hooded Pump Contest" which calls for participants to estimate the actual number of liters a hooded gas pump of each Caltex Station will dispense within a specific period. Such contest is open to all motor vehicle owners and/or licensed drivers. There is no required fee or consideration, and there is no need for the contestants to purchase the products of Caltex.  The forms are available upon request at each Caltex Station and there is a sealed can where accomplished entry stubs may be deposited.  Foreseeing the extensive use of mails for publicizing and transmission of communication purposes, Caltex sent representatives to the postal authorities for advance clearing for the use of mails for the contest.  But then, the Postmaster  General, Enrico Palomar, denied the request of Caltex in view of Sections 1954 (a), 1982 and 1983 of the Revised Administrative Code.  The aforesaid sections prohibits the use of mail conveying any information concerning non-mailable schemes, such as lottery, gift enterprise, or similar scheme. Consequently, Caltex invoked a judicial intervention by filing a petition of declaratory relief against the Postmaster General, ordering the Postmaster General to allow the petitioner to use the mails to bring the contest to the attention of the public and that the aforesaid contest is not violative of the Postal Law.

Issue:

Whether or not the petition of Caltex states a sufficient cause for declaratory relief.

Whether or not the ‘Caltex Hooded Pump Contest’ violates the Postal Law.

Ruling:                  

                         Judgment Affirmed.

‘Caltex Hooded Pump Contest’ is not a lottery that may be administratively and adversely dealt with under the Postal Law nor does it transgress any of its provisions. A lottery or gift enterprise comes within the prohibitive statutes only if it exhibits the tripartite elements of prize, chance and consideration; and, there being no consideration derived directly or indirectly from the party receiving the chance with regards to this contest means it is not one. Hence, the appellee may not be denied the use of the mails for the purposes thereof and that the petition herein states a sufficient cause for declaratory relief.