Case Digest:

Petitioner: Government of the Philippine Islands, represented by Executive

Treasurer
Respondent: El Monte de Piedad Y Caja de Ajorras de Manila

FACTS: On June 3, 1863, a devastating earthquake in the Philippines took place.

The Spanish dominions provided $400,000 aid as received by the National
Treasury as relief of the victims of the earthquake. The government used the
money as such but $80,000 was left untouched and was thus invested to Monte
de Piedad bank, which was in turn invested as jewelries, equivalent to the same
amount.

In June 1983, the Department of Finance called upon the same bank to return
the $80,000 deposited from before. The Monte de Piedad declined to comply
with this order on the ground that the Governor-General of the Philippine Islands
and not the Department of Finance had the right to order the reimbursement
because the Philippine government is not the affected party. On account of
various petitions of the persons, the Philippine Islands brought a suit against
Monte de Piedad for a recovery of the $80,000 together with interest, for the
benefit of those persons and their heirs. Respondent refuse to provide the
money, hence, this appeal.

ISSUE: Whether or not the Philippine government is authorized to file a

reimbursement of the money of the people deposited in respondent bank.

HELD: The Court held that the Philippine government is competent to file a
complaint/reimbursement against respondent bank in accordance to the Doctrine
of Parens Patriae. The government is the sole protector of the rights of the
people thus, it holds an inherent supreme power to enforce laws which promote
public interest. The government has the right to "take back" the money intended
fro people. The government has the right to enforce all charities of public
nature, by virtue of its general superintending authority over the public interests,
where no other person is entrusted with it.

Appellate court decision was affirmed. Petition was thereby GRANTED. The
Court ordered that respondent bank return the amount to the rightful heirs with
interest in gold or coin in Philippine peso.