Govt of Phil Islands Vs Monte de Piedad
Govt of Phil Islands Vs Monte de Piedad
Govt of Phil Islands Vs Monte de Piedad
vs
MONTE DE PIEDAD
35 PHIL. 728
December 13, 1916
FACTS: During the Spanish government, contributions were collected for the relief of
earthquake victims. Monte de Piedad, a charitable institution, petitioned to the Governor-
General for the transfer of $80,000 as a loan for they are in need of additional working
capital. Department of Finance called Monte de Piedad to return the $80,000 on June 1893
but the latter refused to comply on the ground that only the Governor-General of the
Philippine Islands and not the Department of Finance has the right to order the settlement.
The Government of the Philippine Islands, through the Attorney-General, filed a suit against
the Monte de Piedad for the recovery of $80,000, together with interest, for the benefit of
those persons or their heirs. Judgment was rendered in favor of plaintiff for the sum of
$80,000 gold or its equivalent in Philippine currency, together with legal interest from
February 28, 1912, and the costs of the cause. The defendant appealed that the government
is not a competent plaintiff because the suit should be only be instituted by either the
beneficiaries or their heirs.
ISSUE: Whether or not the Government of the Philippine Islands has the right to file the
case in representation of the legitimate claimants.
HELD: Yes, the Supreme Court affirmed the right of the Government to file the case as
parens patriae. The prerogative of parens patriae is inherent in the supreme power of
every State, whether that power is lodged in a royal person or in the legislature. It is a most
beneficient function, and often necessary to be exercised in the interest of humanity, and
for the prevention of injury to those who cannot protect themselves. Besides, the
beneficiaries are quite numerous and it would be impractical to institute an action
individually to recover the $80,000. But the true ground is that the money being given to a
charity was intended to be devoted to public use, and became part of the public resources
for promoting the happiness and welfare of Philippine Government. It cannot be
considered a mere nominal party because to deny the Government the right to maintain
this action would be contrary to sound public policy. These principles based "upon the
foundation of the great principle of public policy" are applicable to the Philippine
Government.