Filipinas Compania De Seguros V. Mandanas 3h2p58

FILIPINAS COMPANIA DE SEGUROS v. MANDANAS Facts: The Philippine Rating Bureau is a formation of non life insurance companies in the country. It was created as a mechanism for to tly fix rates, determine risks, gather information, etc. In Art. 22 of their constitution states that: “ of the Bureau agree not to represent nor to effect reinsurance with, nor to accept reinsurance from any company, body, or underwriter, licensed to do business in the Philippines not a member in good standing of the Bureau.” Defendant Mandanas seeks to have this stricken down as an illegal restraint on trade. Held: The test as to whether a given agreement constitute an unlawful machination or a combination in restraint of trade is whether, under the particular circumstances of the case and the nature of the particular contract involved in it, the contract is, or is not, unreasonable. There is nothing unlawful or contrary to public policy either in the objectives thus sought to be attained by the Bureau, or the means to their ends. It is very clear that the purpose of the assailed article is to promote ethical practices, not to prevent or eliminate competition.