CA allows John Hay investors to intervene in plea vs BCDA

THE Court of Appeals’ Special Fifth Division allowed a large group of investors at the former US military facility to intervene in the petition filed by Camp John Hay Development Corporation (CJHDEVCO), which sought to stop the Bases Conversion and Development Authority from using the arbitration panel’s decision to evict third-party investors at the 247-hectare former American recreational facility in Baguio City.

Associate Justice Noel Tijam said they will rule on the other motions to intervene filed by other investors in due time.

Lawyer Joel Bodegon, counsel for intervenor Camp John Hay Golf Club, which occupies 20 percent (48.43 hectares) of the leased area at Camp John Hay with more than 800 members ,welcomed the ruling.

Bodegon also represents CAP John Hay Trade and Cultural Center (JHTCC), a co-petitioner in the main petition filed by CJHDEVCO.

During Thursday’s continuation of the summary hearing on the writ of injunction being sought by CJHEDVCO, Justice Tijam questioned BCDA on its ability to fully comply with the arbitral award.

“Why should it be necessary to enforce the notice to vacate if there is no actual payment yet,” Tijam asked.

Tijam added that based on the language of the arbitral award, its implementation is “reciprocal” to the payment of award or should be “kaliwaan.”

But BCDA lawyer Demetrio Custodio insisted that it is bounded by the COA rules being a government agency.

“We have no recourse, we are a government institution,” Custodio said.

“We do not accede to the idea that it’s kaliwaan,” Custodio added.

Meanwhile, arguing  for his client CAP-JHTCC, Bodegon told the appeals court that the arbitral award is not a judgment of eviction but a judgment of rescission of contract, thus, cannot be used as basis to justify their removal from the leased property.

“What applies in this situation is not the law on lease but the law on rescission,” Bodegon said.

He said third party investors like CAP-JHTCC stand to suffer irreparable damage if the writ of execution is not granted.

Bodegon noted that its client spent more than P150 million for the construction of the trade center.

“Losing it would mean the demise of CAP trade and the deprivation of ownership without just compensation,” the lawyer said.

Earlier, the CJHDEVCO  asked the CA to grant its prayer for a writ of injunction in order  to protect the interest of the more than 1,600 third party investors inside Camp John Hay.

The CJHDEVCO said their tenants have valid contracts that should be respected by the BCDA.

The CA earlier issued a 60-day temporary restraining order (TRO) enjoining the  Baguio City Regional Trial Court from evicting CJHDEVCO from the former American recreational facility.

The TRO will expire on July 19 thus, the need for the CJHDEVCO for a writ of injunction to indefinitely  stop the BCDA from evicting its tenants pending the resolution of its petition seeking to exclude third parties from being covered by the arbitral award.