BAGUIO CITY – The state-owned Bases Conversion and Development Authority (BCDA) said the Sobrepeña-led CJH Development Corporation (CJHDevCo) misled its sub-lessees to believe that sub-lessees were not at all affected by the Arbitral Tribunal’s final award.
The CJHDevCo also misled the sub-lessees to believe that until BCDA pays the P1.42 billion, it will not vacate Camp John Hay.
In a letter addressed to its sub-lessees dated 21 April 2015 CJHDevCo EVP and COO Alfredo R. Yñiguez III informed the sub-lessees that the Regional Trial Court Branch 6 of Baguio had issued a Writ directing CJHDevCo to vacate Camp John Hay but said that the sub-lessees that sub-lessees were not covered by the Writ.
BCDA head for legal services lawyer Peter Paul Andrew T. Flores commented that “Mr. Yñiguez signed a letter giving sub-lessees the impression that they were excluded from the Final Award despite his knowledge to the contrary. That is why we cautioned him from making any statement that may be perceived as reckless or untruthful.”
Yñiguez’s statement runs opposite to the declaration of the Regional Trial Court that the Final Award issued by the Philippine Dispute Resolution Center, Inc. directed the return of all the structures and improvements to BCDA without exemption. During the 17 April 2015 Pre-Execution Hearing attended by Yñiguez himself, the court declared that, “xxx the dispositive portion of the award xxx did not make a specific exception on those that are being held by sub-lessees or vested rights holders.”
This was the second time that CJHDevCo’s position on the award was rebuffed. A few days earlier, the court also rejected CJHDevCo’s proposition that it would vacate Camp John Hay only after it had been paid the P1.4 billion award.
During the 14 April 2015 hearing, the court, responding to CJH DevCo lawyer Gilbert Reyes assertion that the turnover be made through “kaliwaan” answered, “Yes. The Court would understand it really as that way, kaliwaan. You [CJHDevCo] vacate and then I [Court] have here the money ready with me but hindi ko ibibigay yan unless you vacate.”
Flores added that the Baguio RTC said that the rights of the sub-lessees shall be governed by the laws on contract.
“This means that the obligor (CJHDevCo) is liable to the obligee (sub-lessees) for damages that may be suffered by the obligee from the non-performance of the obligor,” he explained.
Flores also cited the Supreme Court ruling in Guevara Realty Inc. v. Court of Appeals, G.R. No. L-57469 where the Supreme Court has held: “A judgement of eviction against a lessee affects his sub-lessee, even if the latter are not sued in the ejectment case. This is so, because a sub-lessee can invoke no right superior to that of his sub-lessor, and the moment the latter is duly ousted from the premises, the former has no leg to stand on. The sub-lessees’ right, if any is to demand reparation for damages from his sub-lessor, should the latter be at fault. The sub-lessees can only assert such right of possession as could have been granted them by their sub-lessor, their right of possession depending entirely upon that of the latter.”
In the said letter, Yñiguez went on to say that: “[T]he ‘Notice to Vacate’ is directed to CJHDevCo “and all persons claiming rights under them.” The said phrase refers only to CJHDevCo and its employees, security personnel as well as its subsidiaries. We also wish to emphasize that the ‘Notice to Vacate’ IS NOT directed at persons who acquired rights in ‘good faith’ such as the CJH golf club members, Manor & Forest Lodge condotel unit owners, Forest Cabin unit owners, Country Home owners, Log Home owners, lot owners, residents, locators and investors.” The letter is also posted at CJHDevCo’s websites: www.campjohnhay.com and www.cjhdc.com.
The Final Award of the Arbitral Tribunal ordered CJHDevCo 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 BCDA in good and tenantable condition in all respects, reasonable wear and tear excepted.
The final award also ordered BCDA to return to CJHDevCo the total amount of rentals Claimant has paid in the total amount P1,421,096,052.00.
By Dexter A. See
