CALTEX vs.

ENRICO PALOMAR- Declaratory Relief, is available to any person “whose rights are effected by
a statute to determine any question of construction or validity arising under the statute for declaration of his
right thereunder.

CALTEX (PHILIPPINES), INC., petitioner-appellee,

vs.
ENRICO PALOMAR, in his capacity as THE POSTMASTER GENERAL, respondent-appellant.

FACTS:

On 1960, The Caltex Laid the ground work for a promotional scheme calculated
to drum up storage for its own products. Participation is to be open to all
motor vehicles and/or licensed drivers, except the dealers, advertising
agency, and their immediate families.

No fees, or consideration is required to be paid, no purchase of Caltex

Products to be made and entry forms are to be made available upon request at
each Caltex Station where a sealed can will be provided for the deposit of
accomplished entry stubs.
The Caltex proposed three-staged winner selection. The contestant who can
estimate the actual number of liters dispense by the Hooded Pumps will be
awarded the first price; the next closest answer; the second; the next, the
third. First prize winners will be qualified for the regional contest
participated by seven regions. The regional first prize winner will be
entitled to a free round trip to manila to participate the National contest.
At the national level, the first price will then receive 3,000; second
prize, 2000; third prize 1500 and 650 consolation prizes. For the contest to
be cleared in advance for mailing the CALTEX made a representation with the
postal authorities. Postal master General declined to grant the requested
clearance to use the mails for the announcement to reach the public, as the
latter falls within the purview of the provisions on Section 1954,
absolutely non-available matters; section1982, fraud orders; and section
1983 Deprivation of use of money order system and telegraphic transfer
service of the postal law. The respondent likewise threatens the petitioner
that if the contest will be conducted, a fraud order will be issued by the
Letter to CALTEX and all its representatives.
The CALTEX appealed the judicial intervention by filing a petition of
declaratory relief against Post Master General Enrico Palomar, declaring
that the contest is not violative on the Postal Law, and ordering the
respondent to allow petitioner the use of mails to bring the contest to the
attention of the public.

ISSUES:
1. whether the petition states a sufficient cause of action for decelerating
relief.
2. whether the proposed “Caltex Hooded Pump Contest violates the Postal Law”
3. Whether or not the proposed scheme is within the coverage of the
prohibitive prisoners of the postal law.
RULLING:
Yes. The petition herein states a sufficient cause of action for declaratory
relief, as the Caltex Hooded Pump contest described in the rules submitted
by the appellee does not transgress the provision of the postal law.
As stated in section 1 of Rule 66 of the old Rules of Court, which was the
applicable legal basis for the remedy at the time it was invoked,
declaratory relief is available to any person "whose rights are affected by
a statute to determine any question of construction or validity arising
under the statute and for a declaration of his rights thereunder" (now
section 1, Rule 64, Revised Rules of Court). In amplification, this Court,
conformably to established jurisprudence on the matter, laid down certain
conditions sine qua non therefor, to wit: (1) there must be a justiciable
controversy; (2) the controversy must be between persons whose interests are
adverse; (3) the party seeking declaratory relief must have a legal interest
in the controversy; and (4) the issue involved must be ripe for judicial
determination.
Caltex hooded pump contest is not a lottery but a mere gratuitous
distribution of property by chances. Gratuitous distributions of property by
lot or chance does not constitute lottery, it is not resorted to as a device
to evade the law and no considerations is derived, directly or indirectly,
from the party receiving the chance. Gift enterprises and similar schemes
there in contemplated are condemnable only if, like lotteries, they involve
the element of considerations. Hence, the appellee must not be denied to use
the mails for the purpose thereof.
And by the Postal master General denying the proposal to use the mail for
the announcement to reach the public, the respondent must have overlooked
the proposal of Caltex Hooded Contest asserting that the scheme falls within
the purview of the provisions aforesaid and declined to grant the requested
clearance.
But the Caltex Hooded Contest was clear in its announcement that
participants do not have to buy anything or to give anything in value to
join the contest. They just need to fill out the form that are available in
every Caltex branch to be dropped in a sealed can. Thus, this does not
constitute a fraudulent scheme, crime or offense as stated in Section 1954,
Absolutely non-mailable matter; Section 1982, Fraud orders;
Section1983. Deprivation of use of money order system and telegraphic
transfer service of the Postal Law.
The proposed Caltex Hooded Pump Contest announced to be conducted by
petitioner under the rules marked as annex B of the petitioner does not
violate the Postal Law and the respondent has no right to bar the public
distribution of said rules by the mails.