Korean lessee sues John Hay developer

BAGUIO CITY—A Korean filed fraud charges against 11 board members of the developer of Camp John Hay for allegedly deceiving him into leasing a hotel unit that he may not be able to use for the next 50 years as promised.

In an April 23 complaint with the Department of Justice (DOJ), Kim Sung Hwan said he and his father, Kim Chang Sik, acquired a 50-year lease over Suite No. 447 of Camp John Hay Suites from Camp John Hay Development Corp. (CJHDevco) in December 2006 for P5.7 million.

Kim claimed that the suite was delivered to him unfinished in August 2011 only.

He asked the DOJ to file criminal charges against Robert John Sobrepeña, Ferdinand Santos, Enrique Sobrepeña Jr., Noel Cariño, James March Thomson, Silvestre Bello, William Russel Sobrepeña, Raul Goco, Jose Nuñez, Rafael Perez de Tagle Jr. and Laurito Serrano.

He accused the officials of “intentionally deceiving [the Kim family] … through their scheme, making false pretenses … to collect payments, for failing to deliver CJH Suite No. 447 on the promised schedule and of the promised quality as agreed upon, and for misrepresenting that CJHDevco has the right over the properties for 50 years.”

Kim Sung Hwan was among the 11 Koreans who inquired into advertisements posted by the Bases Conversion and Development Authority (BCDA), which contested the 50-year rental contracts that were marketed by CJHDevco.

The BCDA and CJHDevco are locked in a debt feud that spun out into three legal suits early this year.

Antonio Yñiguez, CJHDevco executive vice president and chief operating officer, had described the advertisements as a form of sabotage.

In a joint letter of inquiry to BCDA President Arnel Paciano Casanova dated April 25, the Koreans said: “Several weeks ago, we were surprised to see several press releases made by you and the CJHDevco over the issue of whether or not the actual leasehold rights granted by you to CJHDevco were for 25 years or 50 years.”

Concern

“We were very much concerned about this issue as we have purchased and invested money on our properties, relying on CJHDevco’s representations and assurances that we could make use of our properties until October 2046, with the possibility of renewing our stay thereon,” they wrote.

They told the BCDA that they took out long-term lease contracts for units at Camp John Hay Suites, Forest Cabins and lots offered by the firm’s country, forest and golf estates projects.

Yñiguez on Sunday said the BCDA advertisements were not true. “The [CJHDevco lease contract to develop the former American rest and recreation baseland] is 25 years plus 25 years renewable at the option of the lessee. This has to be honored by the BCDA since they were party to the original lease contract in 1996,” he said.

“Four directors of the BCDA were [part] of the board of CJHDevco from July 2008 to December 2011. Therefore, they knew everything that was happening and everything was transparent,” Yñiguez said.

In his complaint, Kim said: “In all verbal and written representations made by CJHDevco and its representatives, they intentionally deceived the purchasers that they could sell properties inside Camp John Hay for use for 50 years or until 2046 to entice purchasers to pay them the purchase price or lease consideration.”

“CJHDevco sold us CJH Suites Unit 447 for and in consideration of P5,703,811,” Kim wrote in his affidavit. He said his father paid a P50,000 reservation fee on Dec. 29, 2006 for the unit upon the guarantee they would use it six months after completing the payments. Frank Cimatu, with a report from Vincent Cabreza, Inquirer Northern Luzon