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Tapalla, Gian Carlo C.

L- 110522

1B

TOPIC: The Supremacy of Natural Law Over Positive Law

Government of the Philippines Islands v. Monte de Piedad GR 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 for the victims and it was received by the Philippine Treasury. Out of the aid, $80,000.00 was left untouched; it was then invested in the Monte de 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 that the Philippine government is not an affected party hence has no right to institute a complaint. Bank argues that the government was not the intended beneficiary of the said amount. Issue: Does the Philippine Government have the personality to institute the action? Held: Yes. In this country, the Government 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. This prerogative of parens patriae is inherent in the supreme power of the [State] xxx. It is a most beneficial function, and often necessary to be exercised in the interest of humanity, and for the prevention of injury to those who cannot protect themselves. Furthermore, it would be impracticable for the beneficiaries to institute an action or actions either individually or collectively. The only course that can be satisfactorily pursued is for the Government to again assume control of the fund and devote it to the object for which it was originally destined. Philosophical Principle: In the instant case the Philippine Government is not a mere nominal party because it, in bringing and prosecuting this action, is exercising its sovereign functions or powers xxx. These principles being based "upon the foundation of the great principle of public policy" are, in the very nature of things , applicable to the Philippine Government.

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