Sobrepeña firm faces suit on John Hay row

Locators, lessees seen seeking recovery of investments, Sobrepeña
By: - Reporter / @amyremoINQ
/ 02:42 AM April 06, 2015

LOCATORS WITHIN the Camp John Hay are poised to file a class suit against the Sobrepeña-led Camp John Hay Development Corp. (CJHDevCo) to recover their investments in the former US military base, according to the state-run Bases Conversion and Development Authority (BCDA).

In a statement, BCDA president and CEO Arnel Paciano D. Casanova said this followed the continued refusal of CJHDevCo to reimburse the sub-lessees for the unused portion of their contracts.


Casanova also pointed out that CJHDevCo could have sold “in bad faith” 50-year straight leases to its sub-lessees when what was allowed by law was only a 25-year lease, which could be renewed for another 25 years. Article XIII, Section 3 of the 1987 Constitution does not provide a 50-year straight lease.

“There is also such a thing as seller in bad faith. Did the Sobrepeña-led CJHDevCo sell the 50-year leasehold rights in bad faith?” Casanova asked.


BCDA head for legal services Peter Paul Andrew T. Flores had clarified that sub-lessees should go after CJHDevCo and demand reparation of damages.

CJHDevCo, Flores further alleged, has been misleading the sub-lessees by telling them that the BCDA was aware of their contracts and should be the agency to honor their contracts.

The fact that CJHDevCo has concealed the contracts of the sub-lessees and sub-locators to John Hay Management Corp. and BCDA made the Sobrepeña firm liable to the sub-lessees and sub-locators.

Casanova earlier urged the lessees and locators to lay their rightful claim to the P1.42 billion that CJHDevCo would be receiving from the agency by virtue of a decision issued by Philippine Dispute Resolution Center Inc. (PDRCI). The amount represented the lease payments of CJHDevCo to BCDA.

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