Court gives developer one month to vacate John Hay

BAGUIO CITY—A court sheriff on Tuesday gave the developer of Camp John Hay here a month to vacate the former American rest and recreation center to fulfill an arbitration ruling that ended a contractual dispute in the tourism estate.

In Taguig City on Monday, the sheriff also served the Bases Conversion and Development Authority (BCDA) with a separate order that requires the Camp John Hay administrator to reimburse P1.42 billion—the rent paid by the developer, Camp John Hay Development Corp. (CJHDevco).

The notice to pay also gave the BCDA, the administrator of the Camp John Hay reservation, 30 days to fulfill the

Feb. 11 arbitral ruling of the tribunal formed by the Philippine Dispute Resolution Center (PDRC).

Arbitration

The feuding parties were directed to undergo arbitration by Judge Cecilia Corazon Archog of the Baguio Regional Trial Court, who confirmed the PDRC ruling on March 27.

The PDRC tribunal had concluded that both BCDA and CJHDevco, a firm owned by businessman Robert John Sobrepeña, violated the original lease agreement to develop more than 200 hectares of Camp John Hay into a tourism facility.

To resolve the problem created by contract breaches, the tribunal rescinded the lease agreement, ordered the BCDA to return CJHDevco’s rent, and directed CJHDevco to return to BCDA the leased property, including all its developments, to BCDA, “in good and tenable condition.”

Gag order

In previous news conferences held here, Sobrepeña and BCDA president Arnel Paciano Casanova said they were required by law to honor the PDRC ruling.

But Archog issued both parties a gag order, after the BCDA and CJHDevco again waged a public spat on the impact of the arbitration ruling on homeowners and other business establishments operating inside the Camp John Hay Special Economic Zone.

Eviction notice

The sheriff’s April 21 eviction notice is directed at CJHDevco “and all persons claiming rights under them.”

Councilor Richard Cariño, a lawyer who represents a hotel owner inside Camp John Hay, said the notice would affect his client.

“We have since assigned our rights to the BCDA, indicating the government will respect our rights to operate here pending negotiations of a new arrangement. But technically, we are covered by that notice to vacate, as are all sublessees (tenants) who lost their rights when the original lease was extinguished,” Cariño said.

Archog’s confirmation order addressed the issue of property owners who leased hotel units or cottages for 25 years, renewable for another 25 years.

“The final award is clear. It needs no further interpretation … . As to the list of sublessees and/or vested rights holders, they will be governed by the law on obligations and contracts,” the order said.

BCDA lawyer Peter Paul Flores was barred by the court from discussing the orders. But he said the agency would put up information booths to assist homeowners who may be affected by the order.

Lawyer Linda Montes-Loloy, clerk of court and ex-officio Baguio RTC sheriff, signed the notices but declined further comment for being covered by the gag order.

According to the writ of execution, CJHDevco may levy government properties if BCDA does not hand over its rent payments once the firm leaves Camp John Hay.