SC upholds ruling ordering return of Camp John Hay to BCDA

MANILA, Philippines – The Supreme Court (SC) has upheld an arbitral ruling ordering CJH Development Corporation (CJH DevCo) to vacate a portion of Camp John Hay in Baguio City it leased from the Bases Conversion Development Authority (BCDA).

The BCDA’s mandate is to convert former US military bases into alternative productive uses and enhance derived benefits to promote economic development. After the transformation of Camp John Hay into the 625-hectare John Hay special economic zone, the lease and development of a 247-hectare portion was awarded to CJH DevCo.

But disputes over lease obligations led CJH DevCo to file a complaint with the Philippine Dispute Resolution Center Incorporated (PDRCI), which ruled for mutual rescission, ordering CJH DevCo to return the property and BCDA to refund rent that was already paid.

The PDRCI arbitral tribunal found that both parties were guilty of breaches of their obligations under the agreement.

CJH DevCo was specifically ordered to return the leased property, together with all improvements, and BCDA must refund to CJH DevCo the rent the latter had already paid, amounting to P1.4 million.

The High Court said that CJH DevCo had to give the leased property and any renovations back to BCDA. BCDA should then reimburse CJH DevCo for the rent that was already paid. – Rappler.com