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Caltex v. Palomar G.R. No. L-19650 (1966)
Caltex v. Palomar G.R. No. L-19650 (1966)
L-19650 (1966)
Foreseeing the imminent bulk use of mail for the scheme, Caltex asked postal
authorities to be cleared of some pertinent provisions in the Postal Law. The Postal
Law enumerates non-mailable matters, authorizes issuance of fraud order, and
identifies effect of violating said law. Some items under non-mailable matters are
advertising on lottery, gift enterprise, or other similar schemes. In response to
Caltex’s request, Postmaster Palomar denied Caltex’s plea saying that its scheme
falls under advertising for lottery, which constitute non-mailable matter. Caltex
asked for reconsideration; Postmaster reiterated his stance and added that if scheme
pushes through, fraud order would be served. Caltex sought judicial intervention.
And trial court ruled in their favor. Postmaster now appealed.
Ruling: No. What is prohibited by the Postal Law is lottery, inter alia. Lottery
necessarily includes consideration, prize, and chance. Caltex’s contest does include
the elements of prize and chance but not consideration as no purchase is required
of participants. Is it a gift enterprise? Still no because no purchase. Lottery is
prohibited if there is consideration; thereby gift enterprise is also prohibited if there
is consideration, following noscitur a sociis. But as demonstrated, neither is
Caltex’s game a lottery nor a gift enterprise. Hence it should be allowed to
proceed.