TOPIC: Parens Patriae

Title of the Case: Government of the Philippine Islands v. El Monte De Piedad

G.R./Date: G.R. No. L-9959 December 13, 1916
Petitioner: THE GOVERNMENT OF THE PHILIPPINE ISLANDS, represented by the
Treasurer of the Philippine Islands
Respondent: EL MONTE DE PIEDAD Y CAJA DE AHORRAS DE MANILA
Ponente: Judge Trent

FACTS:
   On June 3, 1863, an earthquake took place in the Philippine Islands, which was then under the
Spanish  Crown, that devastated lots of civilians. On October 6th of that year, a central relief
board was appointed, by authority of the King of Spain, to distribute the money voluntarily
contributed by donors. After a thorough investigation and consideration, the relief board allotted
$ 365,703.50 to the various sufferers name in its resolution.
                These were later distributed in accordance with the above mentioned allotments, the
sum of $ 30,299.65, leaving a balance of $ 365,403.85 for distribution. Upon the petition of the
governing body of the Monte de Piedad, dated February 1, 1833, the Philippine Government, by
order dated the first month, directed its treasurer to turn over Monte de Piedad the sum of $
80,000 of relief fund in its installment of $ 20,000 “as a returnable loan, without interest.”
These amounts were received on the following dates: February 15, March 12, April 14, and June
2, 1883, and are still in the possession of Monte de Piedad.
                The Attorney General in representation of the Philippine Islands, filed a claim for the
$80,000 together with interest, for the benefit of those persons (or their heirs) appearing in the
list of names published in the Official Gazette instituted on May, 3, 1912 by the Government of
the Philippine Islands, represented by the Insular Treasurer. After due trial in the lower court,
judgment was entered in honor of the plaintiff currency, together with legal interest from
February 28, 1912, and cost of cause. The Monte de Piedad now contends in this appellate case
that the present Philippine Government cannot file suit on the ground that 1) the obligation of the
former was wiped out when there was a change of sovereignty; and 2) the Philippine
government’s right of action had prescribed at the time this suit was instituted on May 3, 1912
ISSUE: Whether or not:
1) The government of the Philippine Islands has capacity to file a suit against the Monte de
Piedad for the recovery of the said amount
2) The same’s right of actions has prescribed under the statute of limitations
RULING:
Does the government of the Philippine Islands have capacity to file a suit against the Monte
de Piedad for the recovery of the said amount? YES.
Under the Principle of Parens Patriae, the Philippine Government being the guardian of the
“rights of the people” can represent the legitimate claimants of the beneficiary and therefore has
the capacity to file a suit against the appellant.
No doubt a large number of the original sufferers have died, leaving various heirs. It would be
impracticable for them to institute an action or actions either individually or collectively to
recover the $80,000. The only course that can be satisfactorily pursued is for the
Government to again assume control of the fund and devote it to the object for which it was
originally destined.
The impracticability of pursuing a different course, however, is not the true ground upon which
the right of the Government to maintain the action rests. The true ground is that the money being
given to a charity became, in a measure, public property, only applicable, it is true, to the specific
purposes to which it was intended to be devoted, but within those limits consecrated to the public
use, and became part of the public resources for promoting the happiness and welfare of the
Philippine Government.
The Philippine Government therefore is not merely a nominal party and, as such, can bring and
prosecute this action in exercise of its sovereign powers. The supreme court then held the right of
the government to file the case.
Has the Philippine Government’s right of actions prescribed under the statute of limitations? NO
It is a matter of common knowledge that statutes of limitation do not run against the State. The
great principle of public policy, applicable to all governments alike, forbids that the public
interests should be prejudiced by the negligence of the officers or agents to whose care they are
confided — asserting rights vested in it as a sovereign government, is not bound by any statute of
limitations, unless Congress has clearly manifested its intention that it should be so bound.
As legislation of a State can only apply to persons and thing over which the State has
jurisdiction, the government is also necessarily excluded from the operation of such statutes.