• CJHDevCo faces lawsuit from lessees

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    The state-owned Bases Conversion and Development Authority (BCDA) said on Sunday a private company with a 25-year lease on the Camp John Hay resort in Baguio City sub-leased various properties for 50 years and faced lawsuit from investors.

    BCDA President and Chief Executive Officer Arnel Cassanova said.

    The Camp John Hay Development Corp (CJHDevCo) sold 50-year sub-leases, which was made in bad faith.

    “There is also such as thing as seller in bad faith,” Cassanova said and called on the sub-lessees to file a class suit against the company.

    CJHDevCo, led by Robert John Sobrepena, has a 25-year lease on Camp John Hay, a former American resort, which is renewable for another 25 years, but the Philippine Dispute Resolution Center has ordered the company to vacate the area.

    The Resolution Center ordered the BCDA to return the P1.42 billion, which CJHDevCo paid as lease payments. BCDA called on sub-lessees to seek legal advise to recover their investments from the payment.

    BCDA head for legal services Peter Flores said the order of the Arbitral Tribunal on CJHDevCo to vacate the area, including new constructions and improvements, was also binding on the subleases.

    He said the sub-lessees could demand reparation of damages through a class action suit against the CJHDevCo, which mislead the investors by telling them that BCDA was aware of their contracts.

    “Contrary to what the CJHDevCo has claimed, the BCDA is not privy to the contracts so how could the BCDA honor it,” Flores said.

    He said BCDA had requested CJHDevCo copies of all contracts and other documents related to the development of residential homes, estates and condotels within the leased area but the company refused.

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