Government v.

Monte De Piedad

35 Phil. 728 – Political Law – Parens Patriae

 In June 1863 a devastating earthquake occurred in the Philippines. The Spanish
Government then provided $400,000.00 as aid for the victims and it was received by the
Philippine Treasury.
 Out of the said amount, $80,000.00 was left untouched; it was then invested in the Monte
de Piedad Bank which in turn invested the amount in jewelries. But when the Philippine
government later tried to withdraw the said amount, the bank cannot provide for the
amount.
 The government then filed a complaint. The bank argued that the Philippine government
is not an affected party hence has no right to institute a complaint.
 The bank argues that the government was not the intended beneficiary of the said
amount.
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 Parens Patriae.
 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.
***alternative***

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.