CA blocks lower court’s eviction order vs Camp John Hay developer

The Court of Appeals stopped the Baguio regional trial court from evicting the Camp John Hay Development Corp. (CJHDevCo) from the former American recreational facility pending resolution of its appeal.
In a five-page resolution, the appeals court’s 5th division said the restraining order is for 60 days.

The appeals court stopped Judge Cecilia Corazon Dulay-Archog of Baguio City RTC, Branch 6, her agents and all persons acting for and on her behalf from enforcing the writ of execution and notice to vacate against the CJHDevCo, the developer of the Camp John Hay.

Besides Archog, also covered by the TRO are respondents Bobby B. Galano, RTC Branch 6 sheriff and the State-owned Bases Conversion and Development Authority (BCDA).

The appeals court also set a hearing on July 1 and 2 and required all respondents to file their respective comments on the petition as well as on the application for preliminary injunction within 10 days from receipt of the notice while the developer was required to file a reply to the said comments within five days from receipt of the same.

“To the give the petitioner the opportunity to articulate its prayer for the issuance of a writ of preliminary injunction and/or the private respondent to comment on the same, we find it necessary to conduct a summary hearing. Thus, a hearing is set on July 1 and 2, 2015 at 10:30 o’clock in the morning at the Paras Hall of this court,” the resolution stated.

On May 12, 2015, CJHDevCo asked the appeals court to stop the Baguio City court from implementing its eviction order.

CJHDevCo lamented that the 30-day grace period provided in the notice to vacate expired Wednesday (May 20) and that it will be mandated to comply with its obligation to vacate the leased premises even before the BCDA has properly performed its reciprocal and mutual obligation to pay the amount of P1.42 billion.

The petitioner told the appellate court that the lower court issued the eviction order even without hearing the side of third parties or sub-lessees.
Petitioner said the sub-lessees’ right to due process were violated. They added that there is also no guarantee that sub-lessees will vacate the areas peacefully.

“Hence, there is a danger of widespread chaos, physical confrontation and possible bloodshed, therefore, the grant of the TRO prayed for is of extreme urgency,” the CJHDevCo said, in its petition.

CJHDevCo executive vice president Alfredo Yñiguez III earlier said the writ of execution and the notice to vacate issued by Baguio regional trial court Judge Cecilia Archog specifically stated that BCDA must first pay P1.42 billion it owes CJHDevCo.

Yñiguez said the payments made by the third-party locators and lessees were in fact credited in the final award as BCDA’s payment for the interest it owed.

He stressed that the writ of execution must be implemented simultaneously, meaning that the final award rendered in the arbitration between CJHDevCo and BCDA is “reciprocal in nature.”

“The judgment obligations are essentially, as termed in the vernacular, ‘kaliwaan.’ CJHDevCo vacates as and when it is paid by the BCDA in full,” Yñiguez said.

The court order also said that in the event that developer fulfills its part but BCDA fails on its end, CJHDevCo may levy on properties of BCDA to satisfy the arbitral award.

“If … respondent (BCDA) cannot return all or part of the obligation, in cash, certified bank check or other mode of payment acceptable to the petitioner (CJHDevCo), you (the sheriff) shall levy upon the properties of respondent (BCDA) of every kind and nature whatsoever which may be disposed of for value and not otherwise exempt from execution,” Judge Archog said in the writ of execution.

Yñiguez stressed that CJHDevCo is “ready, willing and able to vacate the ‘leased premises’ immediately or simultaneous with its actual receipt of payment from BCDA” of the P1.42 billion.

“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. These persons acted in ‘good faith,’ and invested in Camp John Hay by purchasing your property with the consent and knowledge, if not the inducement, of the BCDA,” Yñiguez said.

“All these third parties, therefore, claim rights to remain in Camp John Hay in their own right and from BCDA’s acceptance of the benefit from their payments for the properties they purchased in Camp John Hay which the BCDA must now respect,” the CJHDevCo official added.

The writ of execution came after both BCDA and CJHDevCo filed the same petition for confirmation of the arbitral award, which called for the rescission of the original lease contract and subsequent related contracts due to mutual breach of both parties.

The arbitral tribunal also denied BCDA’s claim for back rentals against CJHDevCo in the amount of P3.3 billion after it was found guilty of committing serious breaches of its obligations under the lease contract, such as its clear failure to set up a functioning One Stop Action Center that would assist the developer in speedily processing required permits. AC