Written by Joel R. San Juan

THE injunction against the Bases Conversion and Development Authority (BCDA) and in favor of Camp John Hay Development Corp. (CJHDevco), the developer of the 247-hectare rest and recreation site in Baguio City, has been maintained by Branch 6 of the Regional Trial Court (RTC) in Baguio City.

 

The BCDA’s second attempt to have the writ of injunction dissolved was denied by the court, thus the injunction remains in “full force and effect.”

In an order dated September 19, Acting Presiding Judge Cecilia Corazon Dulay-Archog of Branch 6 of the RTC in Baguio City noted the compliance by CJHDevco in filing its renewal of the P736,328,465.50 injunction bond with the court on September 16. This means that the court’s earlier injunction order against the BCDA, which prohibited the BCDA from any manner of forceful takeover and any form of dispossession, remains in full force.

On August 23, 2012, the RTC in Baguio issued a writ of preliminary injunction in favor of CJHDevco.

The RTC’s order also said that “for the duration of this case before this Court until a decision is reached in the arbitration proceedings, which are ongoing, the BCDA, its subsidiaries, officials, employees, agents and other third-parties, are: restrained [prohibited on pain of contempt] from committing any act tending to wrest control of the leased property [247 leased property in the John Hay Special Economic Zone under Camp John Hay Development Corp., including forceful occupation and/or ejectment from the leased premises and/or, prohibited from awarding of the rights in the leased property to any new entity for the duration of the instant case and/or unless a contrary court order is issued by this court.”

The injunction, however, came with a bond requirement in the amount of P736,328,465.50. This requirement was fulfilled by CJHDevco and renewed last month through First Integrated Bonding and Insurance Co., a Supreme Court-accredited agency. The original bond was issued by Liberty Insurance Corp.

There is currently an ongoing arbitration proceeding with the Philippine Dispute Resolution Center Inc..(PDRCI), filed by CJHDevco against BCDA to address the breaches of the BCDA and to settle issues regarding a Restructuring Memorandum of Agreement signed in July 2008 (2008 RMOA) owing to BCDA’s violations. BCDA had initially refused to submit to arbitration until compelled by court order to do so in October 2012.

CJHDevCo has invested over P2.6 Billion in developmental expenses for Camp John Hay, on top of over P1.5 billion in lease rentals it has paid to BCDA, since 1996, which actually represents 40 percent of the lease payments due while BCDA has only given permits to 20 percent of the developable land inside the leased area to CJHDevCo.