7/28/2019 Government of the Philippines Islands v. Monte de Piedad GR L 9959, December 13, 1916

1/1

Tapalla, Gian Carlo C. 1BL- 110522

TOPIC: The Supremacy of Natural Law Over Positive Law

Government of the Philippines Islands v. Monte de PiedadGR L 9959, December 13, 1916

Facts:On June 3, 1863 a devastating earthquake occurred in the Philippines.

The Spanish Dominions then provided $400,000.00 as aid forthe victims and it was received by the Philippine Treasury. Out of theaid, $80,000.00 was left untouched; it was then invested in the Montede Piedad Bank which in turn invested the amount pieces of jewelry.But when the Philippine government later tried to withdraw the said

amount, the bank cannot provide for the amount. The bank argued thatthe Philippine government is not an affected party hence has no rightto institute a complaint. Bank argues that the government was not theintended beneficiary of the said amount.

Issue:Does the Philippine Government have the personality to institute theaction?

Held:Yes. In this country, the Government asparens patriae has the right to

enforce all charities of public nature by virtue of its generalsuperintending authority over the public interests, where no otherperson is entrusted with it. This prerogative ofparens patriae isinherent in the supreme power of the [State] xxx. It is a most beneficialfunction, and often necessary to be exercised in the interest ofhumanity, and for the prevention of injury to those who cannot protectthemselves. Furthermore, it would be impracticable for thebeneficiaries to institute an action or actions either individually orcollectively. The only course that can be satisfactorily pursued is forthe Government to again assume control of the fund and devote it tothe object for which it was originally destined.

Philosophical Principle:

In the instant case the Philippine Government is not a mere nominal partybecause it, in bringing and prosecuting this action, is exercising its sovereignfunctions or powers xxx. These principles being based "upon the foundation ofthe great principle of public policy" are, in the very nature of things , applicableto the Philippine Government.