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May 20, 2015

BCDA Cannot Take Over Camp John Hay’s Manor, Golf Club

Business As Usual at Camp John Hay 

Employees of Camp John Hay business can rest easy now, assured that there will be no eviction happening in Camp John Hay’s hotels and golf club, even as BCDA insists on the execution of a Notice to Vacate against Camp John Hay Development Corp. (CJHDevCo), the developer of Camp John Hay. 

Robert John L. Sobrepeña, Chairman of CJHDevCo, explained at a press conference today at Forest Lodge hotel in Camp John Hay that The Manor, Forest Lodge, and the golf club at Camp John Hay are not under CJHDevCo and therefore not among the properties that the sheriff can execute the under the RTC’s Notice to Vacate.

“The hotels and the golf club do not belong to CJHDevCo but to third party locators who then contracted CJH Leisure for management of the properties. Management is working for the third party locators, not CJHDevCo,” Sobrepeña explained.

An earlier Order from RTC Baguio dated March 27, 2015, specifically stated that third parties would be governed by the law on obligations and contracts, wherein Article 1385 of the Civil Code specifically states that an “order for mutual restitution” cannot include properties currently in the possession of third persons who acted in good faith.
Sobrepeña also clarified that CJHDevCo does not own the golf club; it is an entity independent of CJHDevCo and therefore not part of what CJHDevCO must return to BCDA in compliance with the arbitration decision.

“The golf club never got its authority or rights from CJHDevCo,” Sobrepena explained. “The golf club was created to comply with the condition of BCDA that (the developers) put up a golf course and golf club in Camp John Hay. It is an independent, SEC-registered corporation, operating and compliant under SEC laws. The golf club in turn sold membership shares to the public as directed and mandated by BCDA iteslef under the original lease agreement.  These members who purchased shares have rights to the golf club until 2046,” Sobrepena added.

BCDA will have to wait until 2046 if it wants to take over The Manor or the golf club. “The hotels and various condotel locators also have rights to use those rooms as they see fit until 2046,” Sobrepena explained.

An arbitration decision ordered the rescission of the development contract between CJHDevCo and BCDA; and that BCDA return lease rental payments from CJHDevCo amounting to P1.4 Billion while CJHDevCo must return Camp John Hay to BCDA. Third party locators, however, were not a party to the arbitration proceedings.
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