The Supreme Court (SC) has resolved the conflict between Camp John Hay Development Corporation (CJHDevCo) and the Bases Conversion and Development Authority (BCDA) ordering CJHDevCo to vacate the John Hay Special Economic Zone.
The SC, in a decision made available on Wednesday and penned by Associate Justice Japar B. Dimaampao, upheld the earlier decision of the Philippine Dispute Resolution Center, Inc (PDRCI) and the Baguio Regional Trial Court (RTC).
The BCDA is a body mandated to take former military bases and turn them into areas with alternative use and contribution to the government.
After the transformation of Camp John Hay into the 625-hectare John Hay special economic zone, the lease and development of a 247-hectare portion was awarded to CJHDevCo in 1996.
However, disagreements over leases and obligations led to both parties seeking arbitration under the PDRCI. Said disagreements led to an initial decision from the PDRCI that found both parties guilty of breach of contract. The Baguio RTC affirmed the decision of the PDRCI.
CJHDevCO was ordered to return the leased property to BCDA management, and BCDA was held liable to reimburse P1.4 billion worth of rents to CJHDevCo. The eviction notice however was frozen after the CJHDevCo argued before the Court of Appeals (CA) that the RTC decision did not account for some 1,600 third-party sublessors who had subleased portions of the 247-hectares under CJHDevCo.
The CA subsequently nullified the Notice to Vacate issued by the RTC not only against CJHDevCo but against its sublessees as well.
The SC overturned the CA’s decisions, making final the ruling where the CJHDevCo had to hand over its 247-hectare claim in John Hay land, and holding the BCDA liable to return the liabilities in the form of already-paid rents worth P1.4 billion.
The SC ruled further that CJHDevCo’s obligation to vacate the premises they leased from BCDA is not contingent on the reimbursement of the rentals by BCDA.
The CJHDevCo and BCDA were previously working on a final deal to settle the dispute prior to the issuance of the decision by the Supreme Court.
CJHDevCo head Robert John Sobrepeña has yet to issue a statement on the SC’s final ruling. The BCDA and John Hay Management Corporation however issued a statement welcoming the decision of the SC saying that it shall utilize the property for the full interest and benefit of the government and of the Filipino people.
