GOVERNMENT OF THE PHIL. ISLANDS V. MONTE DE PIEDAD Y CAJA DE AJORAS DE MANILA G.R. No.

9959 35 PH 728, 751-753 13 December 1916 TRENT, J. FACTS: On 3 June 1863, a devastating earthquake hit the Philippines. The Spanish dominions/authority provided monetary assistance for the victims of the earthquake amounting to $400,000 which was received by the National Treasury. The fund given was used for its objective; however, $80,000 was left from the consumed fund and was thus turned over to the 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, the Philippine Government filed a suit against Monte de Piedad to recover the $80,000 plus interest, for the benefit of listed persons and their heirs. Respondent refused to submit, hence, this petition. ISSUE: Whether or not, the Philippine Government has authority to declare reimbursement of the deposited amount and its interest, from the respondent bank. HELD: The Court held that the Philippine government is competent to file grievance against respondent bank in accordance to the Doctrine of Parens Patriae (a doctrine that grants inherent power and authority for the state to protect persons who are legally unable to act on their own behalf.) The government as protector of the rights of its people holds an inherent supreme power to enforce laws that promote public interest and can thus take the money that is intended for the people. 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 superintending authority over the public interests, where no other person is entrusted with it. The judgment appealed from is affirmed, with costs against the appellant. Petition Granted. The Court ordered respondent bank to return the amount to the rightful heirs with interest in gold or coin in Philippine peso.