People Vs Rosenthal and Osmeña Case Digest
Appellants, Jacob Rosenthal, and Nicasio Osmeña were charged in the Court of First Instance of Manila with having violated Act No. 2581, commonly known as the Blue Sky Law.
It is contended by the appellants that Act No. 2581 is unconstitutional on three grounds. (1) That it constitutes an undue delegation of legislative authority to the Insular Treasurer: (2) that it does not afford equal protection before the law; and (3) that it is vague and ambiguous.
Appellants argue that, while Act No. 2581 empowers the Insular Treasurer to issue and cancel certificates or permits for the sale of speculative securities, no standard or rule is fixed in the Act
Facts
Jacob Rosenthal and Nicasio Osmeña were founders and shareholders of the ORO Oil Company. Resonethal and Osmeña were found guilty by the RTC in two cases of selling their shares to individuals without first obtaining the corresponding written permit of license from the Insular Treasurer of the Commonwealth of the Philippines.
This is in violation of Section 2 & 5 of Act 2851, commonly known as the Blue Sky Law. On appeal. Rosenthal and Osmeña argued that Act 2581 is unconstitutional.
RELATED:
Issue
Whether or not Act 2581 is not unconstitutional on the ground of non-delegation of legislative power.
Ruling
The law is constitutional. The ACT furnishes a sufficient standard for the Treasurer to follow in reaching a decision regarding the issuance of cancellation of a certificate or permit.
The judgments of the lower court are affirmed, with the modification that the fines are reduced as to accused Jacob Rosenthal from P500 to P200 in each case, and as to accused Nicasio Osmeña, from P1,000 to P500 in case No. 52365 and from P2,000 to P1,000 in case No. 52366, with subsidiary imprisonment for both in case of insolvency, and costs. So ordered.
People Vs Rosenthal and Osmeña Case Digest
