Note 71 — Chapter III · THE JUDICIAL FUNCTIONS OF THE AUDIENCIA

As matters of trade were always important in the life and politics of the Islands, commercial suits commanded a large share of the attention of the audiencia. Up to 1769 the jurisdiction of the audiencia was supreme in matters relating thereto,71 but on December 13 of that year a consulado was established at Manila, thereby relieving the audiencia of much of its former control over commercial affairs.72 The consulado, from the time of its establishment, was an ever-present thorn in the side of the audiencia and conflicts over the respective jurisdictions of the tribunals73 were continually arising. We may briefly cite one or two cases to illustrate the respective jurisdictions of the audiencia and the tribunal of the consulado. On December 26, 1806, action was brought by two Spaniards against the British firm of Jacob Smith and Company on account of the inferior quality of goods sold to the plaintiff by that firm.74 Suit was brought originally in the audiencia, but the consulado applied to the governor for jurisdiction in the case on the ground that, as a commercial suit, it should be tried in the consulado.75 The governor awarded jurisdiction to the audiencia. The consulado re-appealed the case, but the Council sustained the governor’s decision on the ground that this was a suit between a private individual and a merchant which should be tried in the audiencia, the tribunal which usually tried cases between individuals. The function of the consulado, the royal decree stated, was to try suits of a commercial character which arose between merchants.76