Camp John Hay tenants may stay until P1.42B is paid to CJHDevCo –appeals court

The more than 1,600 tenants at the 247-hectare Camp John Hay in Baguio City cannot be evicted unless the Bases Conversion and Development Authority (BCDA) pays Camp John Hay Development Corporation (CJHDevCo) with P1.42 billion in rental fees.

 

This was the ruling of the Court of Appeals, as it annulled and set aside a March 27, 2015 order, an April 14, 2015 writ of execution, and an April 20, 2015  notice to vacate issued by the Regional Trial Court Branch 6 in Baguio City.

 

The CA said all three orders from the Baguio court, which would set in motion the eviction process,  cannot apply to third-party investors at CJH.

 

The CA also issued a writ of prohibition that permanently restrains the BCDA from implementing the Baguio court's three orders.

 

In a 66-ruling penned by Associate Justice Noel Tijam, the CA ruled that the third parties have valid contracts with CJHDevCo even if the developer is not the owner of the land where the leased property is located. 

 

The third party investors had earlier claimed their ownership rights over their properties are protected by a 50-year leasehold agreement they signed with CJHDevCo, which remains valid until 2046.

 

In its ruling, the CA said the tenants at Camp John Hay should not suffer from the "breaches and mistakes" of CJHDevCo and BCDA related to their respective obligations under a lease agreement between the two.

 

"These third parties invested their hard earned money in the said buildings and improvements and acquired the same for value. The third parties acted in good faith in investing their money in the improvements and acquired the same prior to the existence of the dispute between CJHDevCo and BCDA and prior to the commencement of the arbitration," the CA ruled.

 

The CA agreed that CJHDevCo should "vacate and cease its operations" on the leased premises, but not until the BCDA has returned to CJHDevCo the amount of P1,421,096,052.00 representing the rental payments the latter has already paid to BCDA since 1996.

 

“In the meantime, BCDA is also directed to respect the contracts entered into by CJHDEVCO with the third parties during the term of the lease, finding that the third parties acquired the improvements and constructions in good faith and for value,” it further said. 

 

The CA also ordered CJHDevCo to endorse to BCDA all contracts the private developer entered into with third-party investors during the existence of the lease.

 

The third parties and Cap John Hay Trade and Cultural Center Inc, however, were directed to submit themselves to the arbitration by the Philippine Dispute Resolution Center. In case they refuse arbitration, the third parties have the option to bring the matter before a regular court, the CA said.

 

The CA said the tenants may remain at Camp John Hay "until their respective rights and interests are determined under compulsory arbitration or as may be adjudicated by the regular courts."

 

The BCDA was also directed to assist in the processing of the claim of CJHDevCo filed with the Commission on Audit, which was given 60 days to act on the claim.

 

In February, CJHDevCo chairman Robert John L. Sobrepeña had already insisted that the BCDA must pay CJHDevCo P1.42 billion in rentals that the developer paid for over a decade, before Camp John Hay is returned to government.  — ELR, GMA News