Baguio court gives injunction order vs takeover at John Hay

BAGUIO CITY—A court here has granted the developer of Camp John Hay its petition for a preliminary injunction to prevent the Bases Conversion and Development Authority (BCDA) from taking over the former American rest and recreation baseland due to an unresolved debt feud.

The six-page ruling favoring the Camp John Hay Development Corp. (CJHDevco) was issued by Judge Cleto Villacorta III of the Baguio Regional Trial Court on April 27, a day after he inherited the case from Baguio Judge Mona Lisa Tabora through a case raffle.

In March, Tabora extended a temporary restraining order against BCDA that was issued in February by Executive Judge Illuminada Cabato, while she deliberated on CJHDevco’s complaint. But Tabora inhibited herself from the case last month due to her husband’s association with Robert John Sobrepeña, CJHDevco chair.

Arnel Casanova, BCDA president and chief executive officer, said the government is exploring “legal avenues in making the Sobrepeña Group of Companies accountable to the public for its commercial exploitation of the Camp John Hay property.”

The court stopped the BCDA from ousting CJHDevco from the 247-hectare former American rest and recreation base that it had leased to the  private developer.

‘Clear, legal right’

“With my findings of a clear and legal right against a unilateral takeover and of grave and irreparable injury arising from such an improvident act at this time, I am compelled to grant the application for a writ of preliminary injunction,” Villacorta said in his ruling. “The writ is effective only until a decision in this case is reached.”

“The reason to me is quite simple: BCDA did not give the petitioner a chance or opportunity to remedy the default,” the ruling said.

“I agree with BCDA that actions must be taken to redress these breaches, if true. But why only now?” said the ruling.

Alfredo Yñiguez, executive vice president and chief operating officer of CJHDevco, said in a statement that at stake are over P5 billion in investments made by CJHDevco in Camp John Hay, P1.5 billion in remittances to the government, jobs for 2,000 people, 15,000 tourist arrivals every week and dozens of businesses.

“Inspite of these challenges, we will not just abandon our investments,” said Yñiguez. “We are here to stay.”

Irreparable damage

The court ruling said it believed that the injury to CJHDevco would be both grave and irreparable.

“And why insist on immediately resorting to drastic remedies without first observing what appears to be conditions precedent? Why did BCDA not correct them then, these alleged omissions and sins of petitioner?” said the ruling.

“And because there was no opportunity to correct any breach and no notice of termination. BCDA cannot pursue the unilateral takeover provision,” the ruling added.

The restraining order also prohibits BCDA from awarding the disputed leased property to a new entity. Frank Cimatu, with a report from Vincent Cabreza, Inquirer Northern Luzon