3rd party contracts in John Hay dispute

The controversy over Camp John Hay over ownership, rentals and policies may be far from over. (See page 1 for more details).

While the Baguio City government is mulling legal action on how to get its overdue rent from protagonists, also affected by the tiff are locators or tenants who are now at a loss on where they stand on legal battle between the Bases Conversion Development Authority-John Hay Management Corp. and Camp John Hay Development Corp. of the Sobrepena group.   

Last week, CJHDevCo, the developer of Camp John Hay in Baguio City urged the BCDA to honor third party contracts on properties and businesses within the property following the resolution of the arbitration case they filed.

Gilbert Reyes, lawyer of CJHDevCo said the arbitration ruling does not affect third parties.

“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 CJHDevCo and the BCDA,” Reyes said.

The CJHDevCohad filed an arbitration case against the BCDA after it refused to accept their offer of payments.

In a resolution released on Feb. 11, the arbitration court dismissed the claim of BCDA that CJHDevCo owes them P3.3 billion and ordered BCDA to return P1.42 billion in rental payments by CJHDevCo.

“BCDA must respect all existing contracts with locators. Aside from that, CJH DevCo continues to have right of possession,” CJHDevCo executive vice president Alfredo Yniguez said. 

The BCDA wants CJHDevCo out of the former American military camp but the latter wouldn’t unless the former pays the P1.42 billion. The legal fight would still go a long way. Meanwhile it’s a standoff while government money, time and resources are being used.