GOVERNMENT VS MONTE DE PIEDAD

G.R. No. L-9959 December 13, 1916

About $400,000, were subscribed and paid into the treasury of the Philippine Islands by the
inhabitants of the Spanish Dominions of 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 the Monte
de Piedad, dated February 1, 1833, the Philippine Government, by order dated the 1st of that month,
directed its treasurer to turn over to the Monte de Piedad the sum of $80,000 of the relief fund in
installments of $20,000 each. 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 the Monte de Piedad. On
account of various petitions of the persons, and heirs of others to whom the above-mentioned
allotments were made by the central relief board for the payment of those amounts, the Philippine
Islands to bring suit against the Monte de Piedad a recover, "through the Attorney-General and in
representation of the Government of the Philippine Islands," 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, and after due trial, judgment was entered in favor of the plaintiff for the sum of
$80,000 gold or its equivalent in Philippine currency, together with legal interest from February 28,
1912, and the costs of the cause.

ISSUE: Whether or not the Philippine government is competent to file a complaint against the
respondent bank.
HELD: Yes. The Philippine government is competent to institute action against Monte de Piedad,
this is in accordance with the doctrine of ParensPatriae. The government being the protector of the
rights of the people has the inherent supreme power to enforce such laws that will promote the
public interest. No other party has been entrusted with such right hence as “parents” of the people
the government has the right to take back the money intended for the people.