Baguio City, Philippines – In the latest development of the long-running dispute over Camp John Hay, the Camp John Hay Development Corporation (CJHDevCo) has released a public statement defending the rights of investors and property owners amid the government’s ongoing recovery of the 247-hectare estate.
CJHDevCo, which previously leased and developed portions of Camp John Hay, is contesting the Bases Conversion and Development Authority’s (BCDA) enforcement of the Supreme Court ruling that upheld the rescission of their lease and ordered the turnover of the property back to the government.
CJHDevCo, which posted the statement on its Facebook page on Saturday, February 21, argues that property owners should not be evicted and accuses BCDA of violating investor rights.
CJHDevCo asserts that the Supreme Court’s ruling did not explicitly mandate the eviction of private unit owners and investors.
“The Final Award did not order CJHDevCo to return Camp John Hay to BCDA free of its lawful occupants,” the statement reads. It claims that the ruling only required CJHDevCo to return the leased premises to BCDA “as far as practicable,” suggesting that properties legally possessed by third-party buyers should not be included in the turnover.
The company also highlights that its original lease agreement with BCDA was for 50 years, an initial 25-year lease with an automatic renewal for another 25 years. “BCDA’s own officials, who sat on the CJHDevCo board from 2003 to 2012, had full knowledge of operations, including sales with 50-year terms,” CJHDevCo said.
The company claims that BCDA was a direct beneficiary of the 50-year lease model, having accepted rental payments in the form of golf shares, hotel units, and log homes based on that timeframe.
CJHDevCo also reiterated its long-standing claim that BCDA was in breach of the lease agreement from the beginning: “The Arbitral Tribunal found BCDA in breach of the lease agreement from the start, which is why CJHDevCo rightfully suspended lease payments.”
It further claimed that BCDA has yet to refund rental payments amounting to P1.4 billion, despite the arbitration ruling ordering it.
Legal reinforcement
Multiple courts have ruled in favor of BCDA in recent weeks, reinforcing the government agency’s authority to reclaim Camp John Hay.
On February 5, Baguio Regional Trial Court (RTC) Branch 79 denied an injunction filed by a group of CJHDevCo sub-lessees seeking to stop BCDA’s full recovery of the estate. The court ruled that the sub-lessees failed to establish a clear legal right to be excluded from the implementation of the Supreme Court’s final ruling, which mandates the return of Camp John Hay to BCDA along with all permanent structures and improvements.
A week later, on February 12, Branch 3 of the Baguio RTC rejected another petition for a temporary restraining order (TRO) and writ of preliminary injunction filed by a different group of CJHDevCo sub-lessees. The court ruled that while the petitioners claimed to be non-parties to the arbitration, their rights stemmed from CJHDevCo’s lease, which had already been voided. “Even if they were not made parties to the arbitration, they are bound by the Arbitral Award considering that they derive their rights from CJHDevCo, who is a party to the arbitration,” the court decision stated.
BCDA Chairperson Hilario Paredes welcomed the rulings, saying they reaffirm the agency’s legal position: “This development proves what we have been saying all along — that the blame on the government, which is simply following the final ruling of the Supreme Court, is misdirected. We hope this gives way to productive dialogue with the claimants so we can discuss possible solutions regarding their claims.”
The BCDA, which regained full control of Camp John Hay in January, has maintained that the Supreme Court ruling nullified all contracts issued by CJHDevCo, including sales to individual buyers. BCDA has since been assisting affected property owners in exploring legal remedies and has offered new lease agreements for those willing to sign fresh terms with the government.
“We recognize the emotional, financial, and legal challenges faced by those affected by the Supreme Court ruling. BCDA’s goal is to help them navigate these issues and ensure that their rights are protected and exercised,” Paredes said in a recent statement.
BCDA has also reiterated that it is not responsible for compensating investors, as their agreements were made with CJHDevCo, not the government. “We encourage all affected stakeholders to lay their rightful claims on the accountable parties they signed their contracts with,” Paredes said.
The agency has offered new residential lease agreements to over 40 sub-lessees in Forest Estates, Country Homes, Golf Estates, and Forest Cabins, with ongoing negotiations for others who wish to retain their properties under legal lease terms with BCDA.
The dispute over Camp John Hay dates back to 1996 when BCDA leased the property to CJHDevCo under a 25-year agreement to develop the area into an eco-tourism hub. However, conflicts arose when CJHDevCo stopped paying lease obligations in the early 2000s, citing BCDA’s failure to grant tax incentives. The legal battle escalated over the years, with BCDA terminating CJHDevCo’s lease in 2012, leading to arbitration proceedings.
In 2015, an arbitral tribunal ruled that both parties breached the agreement, ordering CJHDevCo to vacate and BCDA to refund P1.4 billion in lease payments. CJHDevCo, however, refused to leave, prompting BCDA to seek legal enforcement.
In April 2024, the Supreme Court upheld the 2015 arbitral ruling, finalizing the decision in October 2024. On January 6 this year, court sheriffs implemented the ruling, serving eviction notices to CJHDevCo and its sub-lessees.
CJHDevCo is urging affected investors to challenge BCDA’s implementation of the ruling in court. The BCDA maintained that it is acting in accordance with the law and urged stakeholders to seek legal remedies rather than blame the government for enforcing a Supreme Court decision.
With multiple court rulings affirming BCDA’s right to reclaim the estate, the agency is moving forward with its redevelopment plans for Camp John Hay. However, with CJHDevCo urging investors to fight back, the legal battle may not be over just yet. – Rappler.com