Test

Government v. Monte De Piedad Digest

Facts:
1. Spain paid $400,000 into the treasury of the Philippine Islands for the relief of those damaged by an
earthquake.
2. Upon the petition of Monte de Piedad, an institution under the control of the church, the Philippine
Government directed its treasurer to give $80,000 of the relief fund in Four (4)4 installments. As a
result, various petitions were filed, including the heirs of those entitled to the allotments. All prayed
for the State to bring suit against Monte de Piedad, and for it to pay with interest.
3. The Defendant appealed since all its funds have been exhausted already on various jewelry loans.
Issue: Whether the government is the proper authority to the cause of action
YES.
The Philippine government, as a trustee towards the funds could maintain the action since there has
been no change of sovereignty. The state, as a sovereign, is the parens patriae of the people. These
principles are based upon public policy. The Philippine Government is not a mere nominal party
because it was exercising its sovereign functions or powers and was merely seeking to carry out a
trust developed upon it when the Philippine Islands was ceded to the United States. Finally, if said
loan was for ecclesiastical pious work, then Spain would not exercise its civil capacities.
- See more at: http://lawsandfound.blogspot.com/2012/11/government-v-monte-de-piedaddigest.html#sthash.8yL3SooA.dpuf