More sub-lessees withdraw legal challenge vs BCDA’s Camp John Hay takeover

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This signals a growing acceptance of the legal reality that the estate is now under full government control

BAGUIO CITY, Philippines – More sub-lessees of the Camp John Hay Development Corporation (CJHDevCo) have withdrawn their attempt to stop the Bases Conversion and Development Authority (BCDA) from fully reclaiming the 247-hectare property, following a court ruling that upheld the government’s takeover.

The move comes after Branch 79 of the Baguio Regional Trial Court (RTC) denied a similar petition on February 5, in which a group of foreign nationals sought a temporary restraining order (TRO) to prevent the enforcement of a Supreme Court ruling mandating the return of Camp John Hay, including all improvements, to BCDA.

With the court rejecting that attempt, another group of CJHDevCo sub-lessees has now voluntarily withdrawn their own injunction request, signaling a growing acceptance of the legal reality that the estate is now under full government control.

BCDA Chairperson Hilario Paredes expressed understanding for the affected individuals but stressed that accountability for their losses should be directed at those who sold them properties they never legally owned.

“We understand the plight of those affected as they were deprived of their hard-earned money with false promises of owning homes and having lucrative investments,” Paredes said. “However, blaming the government, which is simply following the final ruling of the Supreme Court, would be misdirected.”

He encouraged all stakeholders to reach out to BCDA for clarity on their legal standing and possible remedies.

“We call on all stakeholders not to be misled by statements repeatedly issued by other parties. We are here to help untangle all confusion, clarify uncertainties regarding their situation, and explore proper remedies under the law.”

What went before

The legal battle over Camp John Hay has spanned more than two decades, beginning with a lease agreement signed in 1996 between BCDA and CJHDevCo, a private developer led by businessman Robert John Sobrepeña. Under the agreement, CJHDevCo was expected to transform the former US rest and recreation base into a premier eco-tourism and business hub, while paying lease rentals to BCDA.

However, in the early 2000s, CJHDevCo stopped making lease payments, citing BCDA’s failure to provide promised tax incentives. The unpaid rentals ballooned into billions of pesos, leading to years of litigation. In 2012, BCDA moved to terminate the lease, triggering arbitration proceedings.

The arbitration tribunal ruled in 2015 that both parties had violated their contract. It ordered CJHDevCo to vacate the property and BCDA to refund CJHDevCo P1.42 billion in rental payments. CJHDevCo, however, refused to leave and continued to operate Camp John Hay’s hotels, golf course, and commercial spaces.

After years of legal back-and-forth, the Supreme Court in April 2024 invalidated a 2015 Court of Appeals ruling that had nullified the Writ of Execution and Notice to Vacate issued by Baguio RTC Branch 6. In its final decision in October 2024, the Supreme Court upheld the arbitral ruling, ordering the full return of the property to BCDA, including all permanent improvements built by CJHDevCo.

With control of Camp John Hay now fully restored to BCDA, the agency has assured stakeholders that it is open to discussions regarding their concerns. It has also committed to handling the transition as smoothly as possible.

The BCDA has already entered into fresh lease agreements with over 40 residential sub-lessees and continues to negotiate new lease terms for other stakeholders, ensuring that legitimate occupants have a path forward.

“As we move forward, our focus now for Camp John Hay is to create a future that benefits everyone,” BCDA President and CEO Joshua Bingcang said. “We invite everyone to be part of this pivotal moment so we can ensure that Camp John Hay reaches its full potential for all who value it.”

For affected stakeholders seeking clarification or assistance, BCDA has set up a help desk, which can be reached via email at cjhhelpdesk@bcda.gov.ph or through the following contact numbers: (+63) 962 534 9397 and (+63) 954 976 8295. – Rappler.com