A case of misinterpretation

Hidden Agenda

- MARY ANN LL. REYES

The eviction of unit owners and other lessees whose contracts with CJH Development Corp. (CJHDevCo) covering portions of Camp John Hay have not yet expired may turn out to have no legal basis at all.

According to a news report, a legal counsel for one of the condominium owners at Forest Lodge inside John Hay has written the Baguio Regional Trial Court arguing that the actions by both the Bases Conversion and Development Authority (BCDA) and court sheriffs evicting these John Hay homeowners violate both the 2015 final arbitral award and a Supreme Court ruling are illegal and abusive since the homeowners were never parties to the arbitration.

The homeowners claim that the court never acquired personal jurisdiction over them as they were not impleaded in the original legal dispute.

Last year, the Supreme Court upheld an arbitral ruling ordering CJHDevCo to vacate a portion of the John Hay Special Economic Zone which the latter had leased from the BCDA covering around 247 hectares. The lease agreement authorized CJHDevCo to sublease the leased property to third persons which it did.

But due to disputes involving the parties' respective obligations under the lease agreement, CJHDevCo filed a complaint in arbitration against BCDA with the Philippine Dispute Resolution Center Inc. (PDRCI). The arbitral tribunal found that both parties breached their obligations under the agreement and ordered mutual restitution, with the parties to revert to their original position prior to the execution of the agreement as far as practicable.

The High Court in its 2024 ruling said that CJHDevCo was specifically ordered by the said arbitral tribunal to return to BCDA the leased property together with all improvements while BCDA in turn must refund to CJHDevCo the rent which the latter had already paid amounting to P1.42 billion.