Topic: Guardianship

Government of the Philippine Islands vs. El Monte De Piedad

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

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
refused to provide the money, hence, this appeal.

ISSUE:
Whether the Government is a proper party to the case under the doctrine of
parens patriae

HELD:
Yes. The ground upon which the right of the Government to maintain the action
rests on the fact that the money, being given to a charity became a public property, only
applicable to the specific purposes to which it was intended to be devoted. It is 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. To
deny the Government’s right to maintain this action would be contrary to sound public
policy.