Analyzing CJHDevCo Stand In Arbitration Tribunal Award #RichFamousLife

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As the case was beginning to unfold with the Arbitral Tribunal decisions, the light comes shining through of this long legal battle between the Bases Conversion and Development Authority (BCDA) against Camp John Hay Development Corporation (CJH Dev Co).

It’s very interesting to know that this legal drama can now have positive impact to the people and leaders of Baguio City. The claiming of Camp John Hay by the BCDA was their ultimate desire starting when CJHDevCo failed to pay the rent. Their squabbles continued as BCDA was making Bob Sobrepena the underdog of the case. It’s really known to many how Arnel Casanova filed an estafa case against Bob Sobrepena but the Pasay Court found him cleaned with his transactions to BCDA.

The award of arbitration turned the tide in which CJHDevCo was very pleased for the result. They welcomed the decision of the tribunal and follow the processes to be implemented.

The Philippine Dispute Resolution Center, Inc., (PDRCI) ordered the Bases Conversion Development Authority (BCDA) to pay P1.42 Billion to Camp John Hay Developer, CJH Development Corporation (CJHDEVCO) representing rental payments made by CJHDEVCO to BCDA since 1996.

The arbitration body also ordered that BCDA is not entitled to the P3.3 Billion alleged unpaid rentals to Bases Conversion and Development Authority (BCDA). The PDRCI found that BCDA did not accomplish the promised center of the Camp. Besides, did not approve the processing of government permits needed in the Camp development.

The CJHDevCo developed and maintained the Camp John Hay while the case was filed in the tribunal. They accepted sub-lessees and sub- locators in Camp John Hay to enable them to uplift their earnings in which just for maintaining the camp, even the eco-development by planting additional pine trees.

The CJHDevCo had publicly announced and assured the tenants about their present position while working on the legal aspects of the award. The following’s the public statement of CJHDevCo to the media:

The Arbitration Tribunal has ordered BCDA to pay CJHDevCo 1.42B pesos representing damages based on rental payments since 1996.

Due to breach of contract, the Arbitration Tribunal denied BCDA’s claim for 3.3 B pesos in back rentals from CJHDevCo. As such, this puts CJHDevCo free and clear of any liabilities to BCDA.

CJHDevCo will abide by the Arbitral Award and will cooperate with BCDA for a peaceful transition provided that the award is confirmed by the Regional Trial Court of Baguio City and the payment of 1.42B pesos has been received in full by CJHDevCo.

We assure all buyers, locators and sub-lesses that any forcible or armed attempts to take-over the camp without the writ of execution of the Baguio Court and without the full payment by BCDA of the 1.42B pesos arbitral award before CJHDevCo turns over the camp shall be thwarted with full resolve.

In the interim, until BCDA secures the writ of execution and fully pays CJHDevCo the 1.42B pesos money award, CJHDevCo shall continue to exercise possession, control, and management of the camp to maintain peace and order, assure the safety of its residents and enable its locators and sub-lessees to conduct their business as usual.

We assure our buyers, locators and sub-lessees that their rights and interests to the properties they acquired and are now using in Camp John Hay, will continue to be protected and respected by Law. The BCDA consented to all sub-leases within the camp when it expressly gave CJHDevCo the right to sub-lease various areas and real estate inventory. The BCDA is also fully aware that the various properties inside the camp were sub-let to various third parties in good faith.

With this public statement of CJHDevCo’s position, what will be the action plan of BCDA?

BCDA Versus CJHDevCo: The Legal Battle Is It Over? #RichFamousLife

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The recent resolution passed by the Philippine Dispute Resolution Center, Inc., (PDRCI) between Bases Conversion Development Authority (BCDA) and Camp John Hay Development Corp. (CJHDevco) had stirred observers and Filipinos alike. What matter most was the fact that it gave equal treatment and decisions? Likewise, Baguio City Government wanted this case to stop for it only makes the citizens suffer for more but now, a victory for government. Finally it will be returned and it can now be developed for the benefit of the public.

The long and sweaty legal battle damaged the entire government revenues coming from the tourists. It reflects negativity for the entire place which can offer much to its visitors. The main effort done by the CJHDevCo inside the camp was overwhelming in terms for the development. Businesses flourished despite the case was lodged against them for not paying rentals.

The arbitral tribunal dismissed the BCDA’s claim for back rentals which CJHDevCo have always maintained were never due and grateful that the substantial rentals the company paid in the course of over more than 10 years were ordered returned to CJHDevCo. And they are currently studying the legal options.

The sum of 1.42B was sufficiently ordered against BCDA to pay the CJHDevCo while legal option to get 3.4B for arrears from CJHDevCo that they used and maintained for so long inside the camp.

The decision also proclaimed the number of trees to be cared for when BCDA will finally claim the place. It’s the eco-system that brought the place to be desired by the tourists. It’s on the hand of the government to plan and take action for its development. Both parties couldn’t initiate until the court order for its finality.

On the CJHDevCo’s side, they want BCDA to settle the amount before claiming the Camp John Hay. Likewise, the stakeholders should coordinate to its new management for inventories and status. The businesses inside the camp must also help BCDA to uplift the overall standing for revenues in the future.

Whatever agreement Bases Conversion Development Authority (BCDA) entered into with CJHDevco no longer applies because their subleases have been terminated with the principal lease. CJHDevco has not been paying the BCDA lease rentals and arrears have ballooned to over P3.4 billion, 25 percent of which or P850 million should have gone to the local governments of Baguio, La Trinidad, Itogon, Sablan, Tuba and Tublay.

BCDA will still run after CJHDevco to pay for the use of the facility for over a decade and for which it has earned billions. Since it cannot be determined which of the parties first violated the 2008 RMOA, such is hereby deemed extinguished due to the mutual breach of the same by both parties. The termination by respondent of the original lease agreement is hereby confirmed in view of the breach of the same by claimant: the claimant is ordered to vacate the leased premises and promptly deliver the leased property, inclusive of all new constructions and permanent improvements introduced during the term of the lease as reckoned from the execution of the original lease agreement to respondent in good and tenantable condition in all respects, reasonable wear and tear excepted.

Let’s see in the coming days what will be next moves of BCDA and CJHDevCo. For sure each party has its own legal weapons to unfold.


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