Note 97 — Chapter X · THE AUDIENCIA AND THE CHURCH: THE ROYAL PATRONAGE

Shortly after the establishment of the consulado of Manila in 1769, a bitter dispute arose between that body and the audiencia for jurisdiction over cases involving the commerce of the Misericordia. On the basis of the cédula of July 8, 1774, the consulado claimed exclusive jurisdiction over all disputes involving trade which arose between merchants. It advanced the contention that in all suits involving losses of galleons the society should be considered in the case of an individual merchant. The audiencia, basing its claims on the royal patronage, declared the consulado to have exceeded its powers, in assuming the jurisdiction described above, and fined several of its members. The consulado appealed the case, and in reply the king promulgated a cédula on June 7, 1775, declaring that neither to the audiencia nor to the consulado belonged the jurisdiction over such cases, but that they should be tried in first instance by the Council of the Indies.97 The reasons assigned for this decision were that the consulado could not try such cases because merchants constituted its membership and because the fiscal and two oidores also belonged to its tribunal. Neither the audiencia nor the consulado, accordingly, could impartially try commercial suits between merchants and the Misericordia; accordingly thereafter all evidence should be submitted to the Council for special action.