Bacsain, Mark

THE GOVERNMENT OF THE PHILIPPINE ISLANDS vs. EL MONTE DE PIEDAD

Doctrine:
This prerogative of “parens patriae” or parent of the nation, is inherent in the supreme power of every State, whether that
power is lodged in a royal person or in the legislature, and has no affinity to those arbitrary powers which are sometimes exerted
by irresponsible monarchs to the great detriment of the people and the destruction of their liberties. On the contrary, it is a
beneficent function, and often necessary to be exercised in the interest of humanity, and for the prevention of injury to those
who cannot protect themselves.

Facts:
 A devastating earthquake took place in the Philippines on June 03, 1863 while every one was busy in its preparation for the
festival of Corpus Christi. All the government-houses and public buildings of Manila were entirely destroyed. About 400
were killed and two-thousand injured.
 On October of that same year, a central relief board was appointed, by authority of the King of Spain, to distribute the
money voluntarily contributed by donors in the relief and rehabilitation of the victims which names was published in the
Official Gazette of Manila.
 Out of the distributed aid, $80,000 was left untouched and upon the petition of the governing body of El Monte de Piedad
(a savings bank and pawnshop) to the Governor-General asking to apply the said treasury funds to the institution to avert
impending crisis on its operations.
 The Governor-General approved the petition via a resolution and authorized the delivery of $80,000 held in the public
treasury in installments of $20,000 under the condition that El Monte de Piedad is bound to return within 8 days after
demand, the sums it may have so received if H.M Government does not approve the resolution.
 By Royal decree order of December 3, 1893, the Governor-General of the Philippine Island was ordered to inform the
minister what was the total sum available at the present time, taking into consideration the sums delivered to El Monte de
Piedad to fulfill the rights to be paid to the remaining claimants.
 The General Treasury ordered El Monte de Piedad to return the loaned money considering that they had used it sufficiently
for 10 years but instead of fulfilling its promise it refused on the ground that only the King and not the Intendencia
(Treasury) is entitled to order the reimbursement and that the amount was a donation not a loan. El Monte de Piedad
furthers that the money in question is part of the charitable subscription. The donors were persons in the Spain and the
trustee was the Spanish Government. Therefore, not a proper party to the action and that only persons who could claim to
be damaged by the payment to El Monte de Piedad or their heirs had the right to reimburse.
  The Attorney General in representation of the Philippine Islands filed a claim for $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.
 After trial, the lower court ruled in favor of the government of the Philippine Islands. El Monte de Piedad then contended
that the government of the Philippine Island cannot file a suit against them as their obligation was wiped out when there
was a change of sovereignty (Treaty of Paris).

Issue:
 Whether the government of the Philippine Islands has the capacity to file a suit against El Monte de Piedad for the
recovery of the amount intended for the beneficiaries of the earthquake? – YES

Held:
 The Supreme Court held that 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 aid and therefore has the capacity to file a suit
against El Monte de Piedad. The Philippine government is not merely a nominal party that’s why it can bring and prosecute
this action by exercising it sovereign powers (public policy power).
 The legislature or government of the State, as parens patriae, has the right to enforce all charities of public nature, by
virtue of its general supertending authority over public interests, where no other person is entrusted with it.