Caltex Vs. Palomar 

G.R. No. L-19650

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.  Then, seeing 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 scheme proposed by Caltex is within the coverage of the prohibitive provisions of the Postal Law inescapably requires an inquiry into the intended meaning of the words used therein.

The Postal Law does not allow “any lottery, gift enterprise, or scheme for the distribution of money, or of any real or personal property by lot, chance, or drawing of any kind".

Held: 

The Court held that the "Caltex Hooded Pump Contest" by CALTEX is not a “lottery” nor a “gift enterprise” but rather a gratuitous distribution of property by chance, which the law does not prohibit. The term "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: First, consideration; second, prize; and third, chance. The contest in question, lacking the element of “consideration”, cannot be deemed al lottery. The rules of the contest made no mention of a valuable consideration of some kind being paid directly or indirectly for the chance to draw a prize. The term “gift enterprise” also could not embrace the scheme at bar. As already noted, there is no sale of anything to which the chance offered is attached as an inducement to the purchaser. The contest is open to all qualified contestants irrespective of whether or not they buy the appellee's products. By virtue of noscitur a sociis — which Opinion 217 aforesaid also relied upon although only insofar as the element of chance is concerned — it is only logical that the term under a 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 indication of any intent to eliminate that element of consideration from the "gift enterprise" therein included.