Constitutional Law 1 The Concept of the State

August 20, 2019 I. Elements of a state

By: Jensen Q. Floren C. Government
b. Parens ptriae
GOVERNMENT v. MONTE DE PIEDAD
G.R. No. L-9959
December 13, 1916

FACTS:
1. After an earthquake on June 3, 1863 in the Philippine Islands, which was under the Spanish Crown, the Spanish Dominions
voluntarily contributed and paid into the treasury of the Philippines $400,000 for the relief of the victims.
2. Monte de Piedad, a charitable institution, petitioned the Governor-General for the transfer of $80,000 as a loan to serve as
the institution’s working capital and, by obligation, they would return the money to the Philippine Treasury.
3. The Philippine Treasury, in representation of the Government of the Philippines, called upon Monte de Piedad to return the
loaned $80,000 that was intended for the earthquake victims.
4. After repeated demands from the Government, Monte de Piedad refused to fulfill its obligation of returning the money to
the Philippine Treasury on the argument that only the Governor-General of the Philippines, and not the Philippine Treasury,
had the right to order the reimbursement.
5. Due trial was then made and the judgement was in favor of the plaintiff for the sum of $80,000 in gold or its equivalent in
the Philippine currency, together with the legal interest and the costs of the cause.
6. Monte de Piedad appealed for the decision claiming that the plaintiff (government) had no authority to bring the action for
the suit could only be filed by the intended beneficiaries themselves or their heirs. They further contended that the
Philippine Government cannot file suit on the ground that the obligation of the former was wiped out when there was a
change in sovereignty.
ISSUE:
Whether or not the Philippine Treasury is competent to file a complaint against Monte de Piedad for the reimbursement of
the money intended to relief the victims of the 1863 Philippine earthquake.
RULING:
The Philippine Treasury upheld the right of Government of the Philippines to file a case as parens patriae in representation
for legitimate claimants, the intended beneficiaries or their heirs, and to assert the protection of the rights of the general
population.

In accordance to 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. Thus, as “guardians” of the people, the government has the right to take back the money that was intended for
the relief of the earthquake victims.

The beneficiaries of charities, often incapable of asserting their rights, look unto the sovereign authority for their
protection. In their incapability, the Government shall stand and act as parens patriae for representation. This inherent
power of the state does not cease to exist under the change of government from a monarchy to a republic. Rather, it now
resides in the legislative department of the state, ready to be called into exercise whenever required for the purposes of
justice and right and is clearly capable of being exercised in cases of charities as in any cases whatever.