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The Government of the Philippine Islands, represented by the Treasurer of the

Philippines Islands, plaintiff-appellee versus El Monte De Piedad y Caja de


Ahorras de Manila, defendant-appellant.
G.R. No. L-9959 Justice Trent

Facts:
On June 3, 1863, a devastating earthquake in the Philippines took place. A total of
$ 400,000 was received by the National Treasury as relief of the victims. The money was
used as such but $ 80,000 was left untouched. The said amount was then invested in
Monte de Piedad Bank.

In June 1983, the Department of Finance ordered the same bank to return the
money deposited. The bank refused to comply with the order on the ground that only the
Governor-General of the Philippine Islands and not the Department of Finance had the
right to order the reimbursement.

The Philippine Islands, through the Attorney-General, bring suit against the said
bank for the recovery of the $ 80,000 together with interest, for the benefit of those
persons or their heirs. Judgment was entered in favor of the plaintiff. The defendant
appealed and questioned the competence of the plaintiff to bring the action, contending
that the suit can only be instituted by the intended beneficiaries themselves or by their
heirs.

Issue:
Whether or not the Philippine government is competent to file a complaint for the
reimbursement of the money intended for the beneficiaries?

Held:
Yes. The Philippine government is competent to file a complaint for the
reimbursement of the money intended for the beneficiaries in accordance with the
doctrine of Parens Patriae, This doctrine states that the State is called in its entirety to do
the function of being a father or a parent of the citizens. The government being the
protector of the rights of the people has the inherent supreme power to enforce laws that
will promote the public interest.

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