Caltex vs. PalomarCaltex v. PalomarGR L-19650, 29 September 1966 (18 SCRA 247)

Facts:

In 1960, Caltex (Phils) Inc. conceived a promotional scheme Caltex Hooded Pump Contest calculated to drum up patronage for its products, calling for participants therein to estimate the actual number of liters a hooded gas pump at each Caltex station will dispense during a specified period. For the privilege to participate, no fee or consideration is required to be paid. Neither a purchase of Caltex products is required. Entry forms were available upon request at each Caltex station where a sealed can was provided for the deposit of accomplished entry stubs. Foreseeing the extensive use of the mails, not only as amongst the mediator publicizing the contest but also for the transmission of communications relative thereto, representations were made by Caltex with the postal authorities for the contest to be cleared in advance for mailing, in view of sections 1954(a), 1982 and 1983 of the Revised Administrative Code. Such overtures were formalized in a letter to the Postmaster General, dated 31 October 1960, in which the Caltex, thru counsel, enclosed a copy of the contest rules and endeavored to justify its position that the contest does not violate the anti-lottery provisions of the Postal Law. Unimpressed, the then Acting Postmaster General Enrico Palomar opined that the scheme falls within the purview of the provisions aforesaid and declined to grant the requested clearance.Caltex thereupon invoked judicial intervention by filing a petition for declaratory relief against the Postmaster General, praying that judgment be rendered declaring its Caltex Hooded Pump Contest not to be violative of the Postal Law, and ordering respondent to allow petitioner the use of the mails to bring the contest to the attention of the public. The trial court ruled that the contest does not violate the Postal Code and that the Postmaster General has no right to bar the public distribution of the contest rules by the mails. The Postmaster General appealed to the Supreme Court.

Issue(s): Whether construction should be employed in the case. Whether the contest is a lottery or a gift enterprise that violates the provisions of the Postal Law.

Held:

Construction is the art or process of discovering and expounding the meaning and intention of the authors of the law with respect to its application to a given case, where that intention is rendered doubtful, amongst others, by reason of the fact that the given case is not explicitly provided for in the law. In the present case, the prohibitive provisions of the Postal Law inescapably require an inquiry into the intended meaning of the words used therein. This is as much a question of construction or interpretation as any other. The Court is tasked to look beyond the fair exterior, to the substance, in order to unmask the real element and pernicious tendencies that the law is seeking to prevent.

Lottery extends to all schemes for the distribution of prizes by chance, such as policy playing, gift exhibitions, prize concerts, raffles at fairs, etc., and various forms of gambling. The three essential elements of a lottery are: (1) consideration, (2) prize, and (3) chance. Gift enterprise, on the other hand, is commonly applied to a sporting artifice under which goods are sold for their market value but by way of inducement each purchaser is given a chance to win a prize. Further, consonant to the well-known principle of legal hermeneutics noscitur a sociis, the term under construction should be accorded no other meaning than that which is consistent with the nature of the word associated therewith. Hence, if lottery is prohibited only if it involves a consideration, so also must the term gift enterprise be so construed. Significantly, there is not in the law the slightest indicium of any intent to eliminate that element of consideration from the gift enterprise therein included. Gratuitous distribution of property by lot or chance does not constitute lottery, if it is not resorted to as a device to evade the law and no consideration is derived, directly or indirectly, from the party receiving the chance, gambling spirit not being cultivated or stimulated thereby. Thus, gift enterprises and similar schemes therein contemplated are condemnable only if, like lotteries, they involve the element of consideration. In the present case, there is no requirement in the rules that any fee be paid, any merchandise be bought, any service be rendered, or any value whatsoever be given for the privilege to participate; for the scheme to be deemed a lottery. Neither is there is a sale of anything to which the chance offered is attached as an inducement to the purchaser for the scheme to be deemed a gift enterprise. The scheme is merely a gratuitous distribution of property by chance.The Supreme Court affirmed the appealed judgment, without costs.STARE DECISISLat. "to stand by that which is decided." The principal that the precedent decisions are to be followed by the courts.To abide or adhere to decided cases. It is a general maxim that when a point has been settled by decision, it forms a precedent which is not afterwards to be departed from. The doctrine ofstare decisisis not always to be relied upon, for the courts find it necessary to overrule cases which have been hastily decided, or contrary to principle. Many hundreds of such overruled cases may be found in the American and English books of reports.An appeal court's panel is "bound by decisions of prior panels unless an en banc decision, Supreme Court decision, or subsequent legislation undermines those decisions." United States v. Washington, 872 F.2d 874, 880 (9th Cir. 1989).Although the doctrine ofstare decisisdoes not prevent reexamining and, if need be, overruling prior decisions, "It is . . . a fundamental jurisprudential policy that prior applicable precedent usually must be followed even though the case, if considered anew, might be decided differently by the current justices. This policy . . . 'is based on the assumption that certainty, predictability and stability in the law are the major objectives of the legal system; i.e., that parties should be able to regulate their conduct and enter into relationships with reasonable assurance of the governing rules of law.'" (Moradi-Shalal v. Fireman's Fund Ins. Companies (1988) 46 Cal.3d 287, 296.) Accordingly, a party urging overruling a precedent faces a rightly onerous task, the difficulty of which is roughly proportional to a number of factors, including the age of the precedent, the nature and extent of public and private reliance on it, and its consistency or inconsistency with other related rules of law.Stare Decisis[Latin, Let the decision stand.] The policy of courts to abide by or adhere to principles established by decisions in earlier cases.In the United States and England, the Common Law has traditionally adhered to the precedents of earlier cases as sources of law. This principle, known as stare decisis, distinguishes the common law from civil-law systems, which give great weight to codes of laws and the opinions of scholars explaining them. Under stare decisis, once a court has answered a question, the same question in other cases must elicit the same response from the same court or lower courts in that jurisdiction.The principle of stare decisis was not always applied with uniform strictness. In medieval England, common-law courts looked to earlier cases for guidance, but they could reject those they considered bad law. Courts also placed less than complete reliance on prior decisions because there was a lack of reliable written reports of cases. Official reports of cases heard in various courts began to appear in the United States in the early 1800s, but semiofficial reports were not produced in England until 1865. When published reports became available, lawyers and judges finally had direct access to cases and could more accurately interpret prior decisions.For stare decisis to be effective, each jurisdiction must have one highest court to declare what the law is in a precedent-setting case. The U.S. Supreme Court and the state supreme courts serve as precedential bodies, resolving conflicting interpretations of law or dealing with issues of first impression. Whatever these courts decide becomes judicial precedent.In the United States, courts seek to follow precedent whenever possible, seeking to maintain stability and continuity in the law. Devotion to stare decisis is considered a mark of judicial restraint, limiting a judge's ability to determine the outcome of a case in a way that he or she might choose if it were a matter of first impression. Take, for example, the precedent set in roe v. wade, 410 U.S. 113, 93 S. Ct. 705, 35 L. Ed. 2d 147, the 1973 decision that defined a woman's right to choose Abortion as a fundamental constitutional right. Despite the controversy engendered by the decision, and calls for its repudiation, a majority of the justices, including some conservatives who might have decided Roe differently, have invoked stare decisis in succeeding abortion cases.Nevertheless, the principle of stare decisis has always been tempered with a conviction that prior decisions must comport with notions of good reason or they can be overruled by the highest court in the jurisdiction.The U.S. Supreme Court rarely overturns one of its precedents, but when it does, the ruling usually signifies a new way of looking at an important legal issue. For example, in the landmark case brown v. board of education, 347 U.S. 483, 74 S. Ct. 686, 98 L. Ed. 873 (1954), the Supreme Court repudiated the separate-but-equal doctrine it endorsed in plessy v. ferguson, 163 U.S. 537, 16 S. Ct. 1138, 41 L. Ed. 256 (1896). The Court ignored stare decisis, renouncing a legal precedent that had legitimated racial Segregation for almost sixty years.Further readingsBrewer, Scott. 1998. Precedents, Statutes, and Analysis of Legal Concepts. New York: Garland.MacCormick, D. Neil, and Robert S. Summers. 1997. Interpreting Precedents: A Comparative Study. Aldershot; Brookfield, Vt.: Ashgate/Dartmouth.Cross-referencesCase Law; Judicial Review.West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.stare decisis(stah-ray duh-see-sis) n. Latin for "to stand by a decision," the doctrine that a trial court is bound by appellate court decisions (precedents) on a legal question which is raised in the lower court. Reliance on such precedents is required of trial courts until such time as an appellate court changes the rule, for the trial court cannot ignore the precedent (even when the trial judge believes it is "bad law"). (See: precedent, appellate court, lower court)Copyright 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.stare decisis noun authoritative example, basis, foundation, precedent, principle of law, rule, standard Associated concepts: stare decisis et non quieta movere, stare in judicioBurton's Legal Thesaurus, 4E. Copyright 2007 by William C. Burton. Used with permission of The McGraw-Hill Companies, Inc.STARE DECISIS. To abide or adhere to decided cases. 2. It is a general maxim that when a point has been settled by decision, it forms a precedent which is not afterwards to be departed from. The doctrine of stare decisis is not always to be relied upon, for the courts find it necessary to overrule cases which have been hastily decided, or contrary to principle. Many hundreds of such overruled cases may be found in the American and English books of reports. Mr. Greenleaf has made a collection of such cases, to which the reader is referred. Vide 1 Kent, Com. 477; Livingst. Syst. of Pen. Law, 104, 5.

People vs Patricio Amigo GR 116719Facts:

Accused-Appellant Patricio Amigo was charged and convicted of murder by the regional trial court, Davao City and was sentenced to the penalty of reclusion perpetua.

Issue:

Whether or not that the penalty or reclusion perpetua is too cruel and harsh and pleads for sympathy.

Held:

The duty of court is to apply the law disregarding their feeling of sympathy or pity for the accused."Dura lex sed lex".