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PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. No. L-11944. August 31, 1960. ]

PHILIPPINE RACING CLUB, INC., ET AL., Petitioners, v. ARSENIO BONIFACIO, ET AL., Respondents.

Paredes, Balcoff & Poblador, for Petitioners.

Solicitor General Ambrosio Padilla and Solicitor Pacifico P. de Castro for Respondents.


SYLLABUS


1. APPEAL AND ERROR; EVALUATION OF EVIDENCE BY COURT OF APPEALS; FINALITY. — The painstaking evaluation of the evidence made by the Court of Appeals, under the law and precedents on the matter involves a question of fact which may not be disturbed by the Supreme Court on appeal.

2. HORSE RACES; COMMISSION ON RACES; AUTHORITY AND FUNCTIONS. — The horse race law Republic Act No. 309 creates a Commission on Races which is charged with the supervision and regulation of horse races in the Philippines. Under said Act, the Commission is charged with the duty to enforce the laws, rules and regulations relating to horse races to require that race tracks be properly constructed and maintained, and in general, "it shall have supervision over all race track or racing club officials or employees authorized or required to be appointed under this Act and over all horse races" (Section 2). The Commission may also exercise such other powers as may be prescribed by law or regulation (Section 2).

3. ID.; RULES AND REGULATIONS; BOARD OF JUDGES AND STEWARDS; AUTHORITY AND FUNCTIONS. — Under the rules and regulations adopted by the Commission on Races, particularly article 1, Chapter I, in relation to Articles 28 and 29, Chapter V thereof, in every horse race the rule requires that there be a board of judges who should determine the result of the race and whose decisions are final and unappealable. In addition, the rule requires that there be a board of stewards which, among others, is given the power to "annul any race before the horses reach their destination if in their opinion there is a bad start or any other incident takes place that makes such action necessary." (As translated). Hence, there are two groups of officials who act in every race whose functions are different one from the other; the board of judges and the board of stewards.

4. ID.; ID.; ID.; ID.; COMMISSION ON RACES SUPERVISION. — The judges determine who the winners are, their decision final and irrevocable; the stewards, on the other hand, are given the power to annul any race if in their opinion there is a bad start or some good reasons exist justifying it. And over these officials we have the Commission on Races which is charged with the duty to supervise their action and the performance of their duties in connection with the races.

5. ID.; POWER OF COMMISSION ON RACES ON BOARD OF JUDGES’ DECISION; POWER OF BOARD OF STEWARDS TO CANCEL OR ANNUL HORSE RACE. — The functions of the Commission on Races, the boards of Judges and Stewards are clearly delimited in the rules and regulations adopted for the purpose. The board of judges was created to decide the race and its decision is final and unappealable. This means that the public has no other recourse than to abide by it even if it believes it to be erroneous. No other authority can change or reverse its decision. But the functions of the boards of stewards are somewhat different. They have nothing to do with the decision of the race. That function exclusively devolves upon the judges. Its functions are merely to see that the race be regular, or that the horses start properly, otherwise it may declare the race annulled or ineffective. But this is addressed to its discretion. Once such discretion is exercised, no other authority can interfere. Its decision is also final. And the commission on races cannot cancel or annul such decision for although the latter has supervision over all horse races and over all race officials and employees having connection with their operation, such power of supervision cannot be extended to functions which belong to other officials as delimited by law. The power of control has been withheld from the Commissioner.

6. WORDS AND PHRASES; SUPERVISION. — Supervision only means overseeing or the power or authority to see that subordinate officers perform their duties. It is different from control which includes the power to alter, nullify or set aside what a subordinate officer may do in the performance of his duties as well as to substitute the judgment of the superior for that of his subordinate. (Montano v. Silvosa, 51 Off. Gaz., 2884).


D E C I S I O N


BAUTISTA ANGELO, J.:


This is a petition for review of a decision of the Court of Appeals relieving respondents from the civil liability ascribed to them by the trial court.

In a race held at the Santa Ana Hippodrome belonging to the Philippine Racing Club, Inc. on July 23, 1950, the competing horses went off to a faulty start. When the barrier was lifted one of the horses turned around and blocked the three horses at its left thus enabling the three horses from the right side to run ahead and gain a good lead. The official starter signalled the stewards of the races who were then on the judges’ stand indicating that the race should be cancelled. The two stewards on duty who were also acting as judges were Carlos Coscolluela and Melquiades Parungao. As his signal went unheeded, the official starter proceeded to the stand where the stewards were seated to inform them that the start was bad and in his opinion the race should be cancelled. Coscolluela, however, told him to "shut up" and allowed the race to go on until its termination.

When the winning horses as well as the corresponding dividends were announced, the betting public showed its disapproval of the result. A commotion resulted which reached the knowledge of the members of the Commission on Races who were then seated in the dining room of the club. The commission was composed of Arsenio Bonifacio, Jesus Cacho, Tomas Sunico and Victor Buencamino, all of whom, except the last, were present at the time. When they noticed the uproar and were informed of its cause, they sent for the stewards and made an on the spot investigation. Convinced that the start of the race was faulty, they decided to cancel it and had their decision announced to the public. In the meantime, while the investigation was going on, the holders of the winning tickets were able to cash the same at the ticket windows. The result was that while the club paid the dividends on the winning tickets it had to refund to the holders of the losing ones the sum of P5,032.00.

Because of this incident, plaintiffs commenced the present action before the Court of First Instance of Manila seeking to recover from defendants said sum of P5,032.00; plus P10,000.00 as moral damages, alleging that defendants acted without or in excess of their authority when they ordered the cancellation of the race and the return of the bets to the holders of the losing tickets, said acts having caused plaintiffs moral damages for having placed their character and reputation under public suspicion.

Defendants disclaimed responsibility alleging that if on the date alleged in the complaint they annulled the race they did so merely pursuant to their official duties as members of the Commission on Races and after conducting an on the spot investigation at which plaintiffs and its employees were heard, and hence they cannot be held liable for damages. They put up a counterclaim in the amount of P40,000.00.

The trial court, after rejecting defendants’ plea that the cancellation of the race was justified, found for plaintiffs’, ordering defendants to pay jointly and severally the sum of P5,032.00 as actual damages, with legal interest from the filing of the complaint. The court disallowed the counterclaim set up by defendants.

After the Court of Appeals, to which the case was taken, had reversed this decision, appellants interposed the present petition for review.

One of the errors they assign is the finding of the Court of Appeals that the race started in a very faulty manner and for that reason the Board of Stewards which had the authority to suspend or cancel the race under the rules and regulations on the matter should have decreed its cancellation as was so insistently recommended by the official starter and, therefore, the trial court erred in ruling otherwise. Petitioners contend that such finding is not borne out by the evidence and so its conclusion that the race should have been cancelled because of such poor start is erroneous. We notice, however, that the Court of Appeals made a painstaking evaluation of the evidence submitted by both parties quoting extensively from the testimony of official starter Villa who undoubtedly is the best man who can explain how the race started having reached the above conclusion after taking into account said testimony. Hence, under the law and precedents on the matter, this is a question of fact which we cannot now look into in the present appeal.

The remaining question, therefore, that needs to be determined is whether the action of the Board of Stewards in not cancelling the race notwithstanding the bad start which raised a howl of protest from the public was final and irrevocable in the sense that it could no longer be revised by the Commission on Races in the exercise of the power of supervision it has over all horse races in the Philippines.

The law governing the operation of horse races in the Philippines is Republic Act No. 309. This Act creates a Commission on Races which is charged with the supervision and regulation of horse races in the Philippines. Under said Act, the Commission is charged with the duty to enforce the laws, rules and regulations relating to horse races, to require that race tracks be properly constructed and maintained, and in general, "it shall have supervision over all race track or racing club officials or employees authorized or required to be appointed under this Act and over all horse races" (Section 2). The Commission may also exercise such other powers as may be prescribed by law or regulation (Section 2).

On the other hand, the pertinent provisions of the rules and regulations governing horse races adopted by the same Commission is Article 1, Chapter, I, in relation to Articles 28 and 29, Chapter V, which for ready reference are quoted hereunder:jgc:chanrobles.com.ph

"ART. 1. La Junta de Carreras tendra poder de supervisión sobre todo cuando se refiera a las carreras que se celebran en Filipinas, y en virtud de este poder de supervisión, ejercera facultades administrativas y quasi-judiciales."cralaw virtua1aw library

"ART. 28. Habra por lo menos tres (3) Comisarios para cada carrera que también podran actual como Jueces. Podran ser Comisarios aquellos Filipinos o ciudadanos de los Estados Unidos que son mayores de edad, no estan interesados directa o indirectamente en alg
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