Case: Govt. of the Phil. Islands v.

Monte de Piedad
G.R. No: G.R. No. L-9959 December 13, 1916
Date: December 13, 1916
Ponente: Trent J.

FACTS
About $400,000, was subscribed and paid into the treasury of the Philippine Islands
by the inhabitants of the Spanish Dominions for the relief of those damaged by the
earthquake which took place in the Philippine Islands on June 3, 1863.
Upon the petition of the governing body of Monte de Piedad, dated February 1, 1833,
the government transferred the unused earthquake assistance amounting to $80,000, which
the Philippine government transferred in installments of $20,000 each. These amounts were
received by Monte de Piedad on the following dates: February 15, March 12, April 14, and
June 2, 1883
When the Department of Finance ordered Monte de Piedad in June 1893 to return the
amount of $80,000, the respondent refused stating that only the Governor-General of the
Philippine Island has the right to order reimbursement.
On account of various petitions of the persons and heirs that were made by the central
relief board, the Philippine Islands brought suit against Monte de Piedad wherein judgment
was ruled in favor of the plaintiff.
Monte de Piedad appealed and questioned the competence of the Philippine Islands
to bring the suit. It contended that the suit could only be instituted by the intended
beneficiaries or by their heirs.

ISSUE
Whether or not the Philippine government has the competency to institute the
action/suit?
HELD
Yes. The doctrine of parens patriae recognizes the personality of the government
being the protector of the rights of the people and has inherent supreme power to enforce
such laws that will promote the public interest.
Moreover, the government as parens patriae has the right to enforce all charities of
public nature, by virtue of its general superintending authority over the public interest,
where no other person is entrusted with it.