Republic of the Phils vs Monte de Piedad G.R. No.

L-11524

Facts: 1. Spain paid $400,000 into the treasury of the Philippine Islands for those affected by the earthquake. 2. Authority of the king of Spain, a central relief board was appointed to distribute the money. 3. After thorough investigation and consideration- relief board allotted $365,703.50 to the various victims, dated September 22, 1866 by order of the victims were entitled to have a specific amount allotted which was published in the official gazette of Manila dated April 7, 1870. 4. Upon the petition of Monte de Piedad, church controlled institution, the Philippine Government directed its treasurer to give $80,000 of the fund in four instalments dated February 15, March 12, April 14 and June 2, 1883. 5. Resulting of the said transaction, various petitions were filed, including the heirs of those victims. State prayed to bring the suit against Monte de Piedad & for it to pay with interest. 6. The defendant appealed since all its funds have been exhausted on various jewelry loans.

Issue: WON the Government is the proper authority to the case of action. Ruling: Philippine Government, as a trustee towards the funds could maintain the action since there has been no change in sovereignty. The Philippine government is not mere a nominal party because it was exercising its sovereign functions & was merely seeking to carry out a trust developed upon when Philippine Islands was ceded. If said loan was for pious work, Spain would not exercise its civil capacities. Upon the litigation, money which the defendants institution used in its banking business may had been held for the time being, for the payment of the depositors mere fact that it was for the time being inactive is not conclusive is the determination of its nature. Judgement appealed from is affirmed with cost against the appellant. So ordered.