Court stops BCDA takeover of Camp John Hay

MANILA, Philippines – The Court of Appeals (CA) has issued a temporary restraining order (TRO) against the eviction of Camp John Hay Development Corporation (CJHDevCo) and third party locators from the former US facility in Baguio City.

The TRO, dated May 19, was signed by Justices Noel Tijam, Myra Garcia-Fernandez, and Victoria Isabel Paredes of the CA’s Special Fifth Division.

The TRO was served the following day on the respondents – Judge Cecilia Corazon Dulay-Archog of the Baguio City Regional Trial Court Branch 6; Linda Montes-Loloy, RTC ex-officio sheriff; Bobby Galano, sheriff of Baguio City RTC Branch 6; and the Bases Conversion and Development Authority (BCDA).

“We hereby issue a temporary restraining order enjoining the Public Respondent Judge, her agents, and all persons acting for and in its behalf, from enforcing the Writ of Execution and Notice to Vacate pending resolution in the main of this petition for certiorari, effective upon Petitioners’ payment of an injunctive bond of P30,000,000,” the court said in issuing the TRO.

It said this is “without prejudging the main case and to prevent the issues raised in the petition from becoming moot and academic.”

CJHDevCo, the petitioner, posted the P30-million  ($674,142.77) bond at 9 am on Thursday, May 21.

The TRO will be in effect for 60 days “unless sooner lifted by the court or sooner modified by a court decision on the merits of the case,” the CA said in its resolution.

The court said it will conduct summary hearings on July 1 and 2, 2015 on the petition for certiorari filed by the petitioner “to give the Petitioner the opportunity to articulate its prayer for the issuance of a writ of preliminary injunction and for the Private Respondent to comment on the same.”

CJHDevCo lawyer Justin Mendoza said that with the TRO “none of the occupants of Camp John Hay, including CJHDevCo, third parties, not even the public, can be asked to leave the property.”

“CJHDevCo has always maintained that it is willing to vacate Camp John Hay upon receipt of the payment from BCDA ordered by the arbitration tribunal. BCDA has not paid CJHDevCo,”  CJHDevCo said in a statement.

Notice to vacate

On April 20, the Office of the Ex-Officio Sheriff of the First Judicial Region, Branch 6 of Baguio RTC served a notice against CJHDevCo and “all persons claiming rights under them” to vacate the premises of Camp John Hay. (READ: Developer gets notice to vacate Camp John Hay)

The notice also ordered CJHDevCo to promptly deliver the leased property, inclusive of all new constructions and permanent improvements, to the BCDA within 30 days upon receipt of the notice.

The BCDA said the sub-lessees are part of the notice to vacate, thus CJHDevCo should be held liable to these sub-lessees for damages.

An arbitration decision of the Philippine Dispute Resolution Center (PDRC) issued in February this year ordered the rescission of the contract between BCDA and CJHDevCo. CJHDevCo was ordered to vacate Camp John Hay upon the return by BCDA of P1.4 billion ($31.46 million) of paid lease rentals fees, plus interest.

Third party locators or homeowners were not a party to the arbitration case. CJHDevCo cited Article 1385 of the Civil Code, which specifically states that an “order for mutual restitution” cannot include properties currently in the possession of third persons who acted in good faith. 

“More important, these innocent third party locators are not even a party to the case filed by CJHDevCo against BCDA. Since the PDRCI decision is for rescission, and not to void the contract between BCDA and CJHDevCo, then the contracts that these third party locators entered into are valid,” CJHDevCo said in a statement. – Rappler.com

$1 = P44.50