The Bases Conversion and Development Authority must honor contracts with third parties for property and businesses within Camp John Hay, according to a lawyer of the Camp John Hay Development Corporation (CJH DevCo), the developer of the former American recreational facility.
“The (arbitration) decision does not affect third parties,” lawyer Gilbert Reyes explained. “An arbitration case is not like a court case; it?’?s a case between parties alone and affects only the parties involved. We trust that even with the issuance of the award, the parties will act in ‘good faith’ and with due regard for the rights and interests of innocent third parties who are not involved in the dispute between CJH DevCo and the BCDA,” said Reyes of Poblador, Bautista and Reyes Law Offices.
An arbitration case was filed by Camp John Hay Development Corp. (CJHDevCo) against? the? BCDA after BCDA refused to accept CJHDevCo?’s offer of ?payments and instead insisted on a payment from CJHDevCo of? an alleged obligation of? P3.3 Billion for rental back payments.
The arbitration court ruled that CJHDevCo is not liable for this alleged obligation of P3.3 Billion.
The arbitration court also ordered BCDA to return P1.42 Billion to CJHDevCo that CJHDevCo had paid in lease rental payments due to the various breaches of contract by the? BCDA.
The arbitration court ruled that BCDA breached the contract between BCDA and CJH DevCo when it failed to set up an agreed upon One Stop Action Center that was supposed to speed up the processing of permits for the development of Camp John Hay.
After the decision on the arbitration case was released on February 11, 2015?, there were? confirmed? reports that the? BCDA had attempted to forcibly take over Camp John Hay again?, just as they have attempted in the past without a valid court order.
This incident required the intervention of the good Mayor of Baguio, Hon. Mauricio G. Domogan, to prevent what could have otherwise been an unfortunate incident.
Executives of Camp John Hay DevCo stressed that this move by BCDA is illegal. “BCDA must respect all existing contracts with locators. Aside from that, CJH DevCo continues to have right of possession,” CJH DevCo Executive Vice President & COO Alfredo Yniguez stressed.
“There is also an existing ‘Writ of Injunction’ against the BCDA ordered by the Baguio RTC that specifically restrains BCDA from any attempts of a forcible takeover,” he said.
“We would also like to stress that as per contract, CJH DevCo has a 50-year lease, not a 25-year leasehold as BCDA is trying to misrepresent. BCDA was aware of and consented to a 50-year lease from the very beginning, which expires on October 2046,” Yniguez added.
In fact, the BCDA signed a lease contract with more than 50-years tenure with a locator in Camp John Hay. BCDA is supposed to remit 25% of rental income in CJH to the City of Baguio.
Consistent with BCDA’s long history of violations, this is also against one of the provisions of the ‘19 Conditionalities’ resolution of the City of Baguio, which BCDA acceded to as a condition for the development of Camp John Hay.