CALTEX V.

PALOMAR
G.R. No. L-19650, September 29, 1966

I. FACTS

 Caltex started a promotional scheme called “Caltex Hooded Pump Contest”

o Participants estimate the actual number of liters a hooded gas pump at each Caltex
station will dispense during a specified period
o Open to all motor vehicle owners and/or licensed drivers
o No fees or considerations required
o Three-staged winner selection system
 Dealer Contest
 Regional Contest
 National Contest
 Caltex made representations with the postal authorities for the contest to be cleared in
advance for mailing
 Postmaster General said that the scheme falls within the purview of the provisions of Postal
Law and declined to grant the clearance
 Caltex sought a reconsideration stating that the contest involved no consideration on the part
of any contestant and not condemnable as a lottery
 Postmaster General Palomar responded that it was a “gift enterprise”
 Caltex filed a petition for declaratory relief against Palomar
 Court ruled that the contest does not violate the Postal Law
 Palomar appealed

II. ISSUES

 Whether the petition states a sufficient cause of action for declaratory relief
 Whether the Caltex contest violates the Postal Law

III. RULING

 Yes, it is within this Court’s jurisdiction to settle the issue at hand. Caltex has made out a case
for declaratory relief.
 No, the Caltex contest is not a lottery and did NOT violate the Postal Law

IV. RATIO

 The term “lottery” extends to all schemes for the distribution of prize concerts, raffles at fairs,
etc., and various forms of gambling
o Consideration
o Prize
o Chance
 Nowhere in the said rules of the Caltex contest is any requirement that any fee be paid, any
merchandise be bought, any service be rendered, or any value whatsoever be given for the
privilege to participate, thus it is not a lottery nor gift enterprise