Spare sublessees from eviction, John Hay developer asks court

BAGUIO CITY—The developer of Camp John Hay has returned to court and has asked a judge to spare their sublessees from eviction.

Judge Cecilia Corazon Archog of the Baguio Regional Trial Court (RTC) set a May 7 hearing for the Camp John Hay Development Corp. (CJHDevco) petition, which was filed a week after the court sheriff issued eviction notices to homeowners, tenants and locators of the John Hay Special Economic Zone.

Court employees said the CJHDevco omnibus motion also questioned an escrow account opened in the name of RTC Branch 6 by the Bases Conversion and Development Authority (BCDA), where it deposited the P1.42 billion in reimbursements ordered paid by the court.

Archog required the BCDA to make payments and directed CJHDevco to leave Camp John Hay when she confirmed and executed the arbitral judgment of the tribunal formed by the Philippine Dispute Resolution Center (PDRC).

The PDRC tribunal ruled that both parties violated the lease contract, which it nullified before requiring CJHDevco to return Camp John Hay to the government in exchange for reimbursements of its rent.

Archog directed the BCDA and CJHDevco to submit to arbitration to end their public feud.

She also imposed a gag order on the proceedings, until the turnover was completed.

But a CJHDevco source, speaking on condition of anonymity, said the omnibus motion sought to call Archog’s attention that “the rights of third parties were not among the issues raised and resolved [by the PDRC judgment] and are therefore not part of the arbitration ruling.”

The third parties refer to CJHDevco’s sublessees who built log cabins or bought hotel rooms under time-sharing or revenue-sharing arrangements, entrepreneurs who set up food or service facilities, and other groups with vested rights in the former American rest and recreation center.

Many of the homeowners have questioned the eviction notices and have consulted lawyers about a class suit to protect their leased property.

The court has given CJHDevco until May 20 to vacate the leased area.

Lawyer Peter Paul Flores, senior BCDA legal officer, said the agency had fulfilled its commitment to the PDRC when it opened the escrow account at Development Bank of the Philippines on April 17.

But CJHDevco said the escrow deposit did not represent “payments as contemplated under Rule 39,” the source said. Rule 39 of the Rules of Court outlines the execution, satisfaction and effect of judgments.

Section 9 of Rule 39 states that in cases where judgment involves a demand for money, the party required by court to make these payments in a writ of execution “shall pay in cash, certified bank check … or any other form of payment … directly to the judgment obligee (in this case CJHDevco) or his authorized representative if present at the time of payment.”

In an earlier news conference, Alfredo Yñiguez III, CJHDevco executive vice president, said the company had offered the BCDA a program for relinquishing their property, complete with a transition period to help government administrators gradually take over operational and managerial control over its hotels and restaurants so these facilities can continue serving customers.

The BCDA declined the offer, according to court records.

The arrangement, therefore, is for CJHDevco to immediately leave as soon as money is turned over directly to the developer, Yñiguez said. Vincent Cabreza, Inquirer Northern Luzon