CJHDevCo to Court of Appeals: Protect Camp John Hay investors

MANILA, Philippines – Private developer Camp John Hay Development Corporation (CJHDevCo) on Wednesday, July 1, asked the Court of Appeals (CA) to protect the interest of more than 1,600 third party investors inside the former American recreational facility in Baguio City.

CJHDevCo lawyer Gilbert Reyes told the appellate court that the final arbitration award issued by the Philippine Dispute Resolution Center Incorporated (PDRCI) is binding only between the Bases Conversion Development Authority (BCDA) and CJHDevCo and not on their tenants. (READ: Camp John Hay returns to BCDA)

Reyes made the plea at the summary hearing conducted Wednesday, July 1 by the CA’s Special Fifth Division on its plea for the issuance of a writ of preliminary injunction that it would indefinitely enjoin the BCDA from evicting it, as well as its sub-lessees, from the property.

He added that CJHDevCo is ready to comply with the PDRCI’s order for it to vacate the leased premises in exchange of P1.42-billion ($31.47-million) payment from BCDA provided that the rights of third parties are respected. (READ: Businesses to CJHDevCo: Vacate Camp John Hay now)

“There is no dispute that all the third parties, they are in good faith and they acquired the property in good faith,” Reyes said at the hearing presided by Associate Justice Noel Tijam. Associate Justices Myra Garcia-Fernandez and Victoria Isabel Paredes were also present during the proceedings.

“They have valid contracts that should be respected by the respondent (BCDA),” he added.

Violation

CJHDevCo has been authorized to sub-lease its properties under the original lease agreement it signed with BCDA in 1996. This is for the purpose of developing Camp John Hay into a wholesome family-oriented public tourism complex, Reyes said.

It was also expressly stated under the original lease agreement that the ownership of the improvements will remain with CJHDevCo until 2046.

Thus, the demand of BCDA for the tenants to vacate the premises prior to the payment of the arbitral award violates the decision of the arbitration panel. (READ: Court rules Sobrepeña camp to vacate Camp John Hay)

“It was not there, it was not intended, it was not contemplated in the arbitration panel’s decision,” Reyes said.

Reyes said the issuance of a writ of preliminary injunction is warranted to avoid irreparable damage to third party investors who have invested their money in good faith.

The CJHDevCo also raised the possibility of more suits being filed in connection with the dispute if its prayer for a writ of injunction will not be granted.

The CA earlier issued a 60-day temporary restraining order (TRO) or until July 19, enjoining the Baguio City Regional Trial Court from evicting CJHDevCo from the former US recreational facility. (READ: BCDA: CJHDevCo misled court over Camp John Hay TRO)

Prior to this, the PDRCI arbitral tribunal rendered the final award, rescinding the subject lease agreement due to mutual breach of the parties.

In the final award, petitioner was ordered to vacate the leased property and to promptly deliver the same to BCDA. The BCDA was also ordered to return to petitioner the amount of P421,096.052 ($9,330.37990) as advance rentals paid by the latter.

On March 6, 2015, CJHDevCo filed its verified petition for confirmation of the final award before the Baguio regional court, which the latter confirmed in toto.

During the pre-execution conference, the parties manifested conflicting positions on the effect of the final award on the third parties occupying the leased property, but the Baguio court declined to rule on its effect on the third parties.

The BCDA, however, included the third parties in the implementation of the notice to vacate, prompting the CJHDevCo to seek redress from the CA.

“They (third parties) cannot be bound by this decision, the decision is supposed to be between BCDA and CJHDevCo,” Reyes said.

Reyes said the BCDA should have been the one that raised the issue on the third parties before the court since it admitted that the nature of its case against CJHDevCo is an ejectment suit. – Rappler.com

$1 = P45.13