A case of misinterpretation

The eviction of unit owners and other lessees whose contracts with CJH Development Corp. (CJHDevCo) covering portions of Camp John Hay have not yet expired may turn out to have no legal basis at all.

According to a news report, a legal counsel for one of the condominium owners at Forest Lodge inside John Hay has written the Baguio Regional Trial Court arguing that the actions by both the Bases Conversion and Development Authority (BCDA) and court sheriffs evicting these John Hay homeowners violate both the 2015 final arbitral award and a Supreme Court ruling are illegal and abusive since the homeowners were never parties to the arbitration.

The homeowners claim that the court never acquired personal jurisdiction over them as they were not impleaded in the original legal dispute.

Last year, the Supreme Court upheld an arbitral ruling ordering CJHDevCo to vacate a portion of the John Hay Special Economic Zone which the latter had leased from the BCDA covering around 247 hectares. The lease agreement authorized CJHDevCo to sublease the leased property to third persons which it did.

But due to disputes involving the parties’ respective obligations under the lease agreement, CJHDevCo filed a complaint in arbitration against BCDA with the Philippine Dispute Resolution Center Inc. (PDRCI). The arbitral tribunal found that both parties breached their obligations under the agreement and ordered mutual restitution, with the parties to revert to their original position prior to the execution of the agreement as far as practicable.

The High Court in its 2024 ruling said that CJHDevCo was specifically ordered by the said arbitral tribunal to return to BCDA the leased property together with all improvements while BCDA in turn must refund to CJHDevCo the rent which the latter had already paid amounting to P1.42 billion.

The High Court’s ruling had become final and executory and BCDA took over the areas that were previously leased to CJHDevCo last January.

But the said homeowner through his lawyer said that the notices to vacate sent to them invoked the sweeping clause “and all persons claiming rights under then,” a phrase which he said improperly expanded the scope of a writ intended solely for CJHDevCo and BCDA.

According to the same news report, the homeowner noted that the arbitral award directed that the parties “be reverted, as far as practicable, to their original position,” while also acknowledging the existence of third-party rights and that nowhere does the ruling authorize the eviction of sub-lessees or private purchasers who had acquired their leasehold rights from private firm CJHDevCo lawfully and in good faith under government-approved contracts.

The counsel for the homeowners has reportedly issued a formal demand for the ex-officio sheriff to halt the enforcement of the writs of execution and break-open orders within five days or face legal action. The lawyer cited Rule 39, Sec. 16 of the Rules of Court which mandates that sheriffs must respect the rights of third-party claimants who were not involved in the original litigation.

It is also claimed that the Jan. 31, 2025 break-open order listed specific units for forcible entry, but sheriffs allegedly attempted to enter units not included in the order.

The report revealed that a total of 12 petitions for quieting of title have also been filed by homeowners asserting that their leasehold rights remain valid until 2046. Meanwhile, a class suit has also been reportedly lodged by members of the John Hay Golf Club challenging BCDA’s revocation of thousands of club memberships.

BCDA, for its part, maintains its actions were consistent with the Supreme Court’s directive but the homeowners argue that directive never authorized eviction of lawfully contracted sub-lessees.

The homeowners may have raised a valid point.

Last month, I wrote about how someone privy to the arbitral process over the issue between BCDA and CJHDevCo explained to me that arbitral rulings are party and case specific so that third parties, such as the sub-lessees of CJHDevCo, are not bound by said rulings. And that since the contracts between CJHDevCo and BCDA and between CJHDevCo and the sub-lessees are valid at the time they were entered into, then they should have been respected by the courts.

It was also pointed out to me that the arbitral tribunal never ordered that the sub-lessees be ejected since again, as third parties to the arbitral case between BCDA and CJHDevCo, they are not parties to the case nor are they bound by its decision.

And since the arbitral process is case-specific, the source noted that the ruling should be limited only to the case subject of arbitration which is that between CJHDevCo and BCDA and should not concern itself with any other case, i.e. the contracts between CJHDevCo and the sub-lessees.

The source added that what BCDA should have done was to take over the CJHDevCo contracts with the sub-lessees and to respect the contracts which were valid at the time they were entered into.

In short, there was no legal basis for the contracts with the sub-lessees to be terminated by the BCDA or even by the courts, or for these sub-lessees to be ejected from the leased property unless the lease has already expired.

The Supreme Court decision could not have meant to expand the coverage of the arbitral ruling to include third parties who were not part of the original dispute that was brought before the arbitral body. After all, the High Court merely upheld the ruling of the PDRCI, which did not touch on the rights of third-party sub-lessees of CJHDevCo.

Poverty remains high

In its 2023 report, the Philippine Statistics Authority (PSA) listed the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as the second poorest region in the country, with a poverty incidence among families of 23.5 percent, next only to Region IX’s or the Zamboanga Peninsula’s 24.2 percent. The BARMM provinces include Basilan, Lanao del Sur, Maguindanao del Norte, Maguindanao del Sur, Sulu and Tawi-tawi.

Among the provinces, Zamboanga had the highest poverty incidence of 37.7 percent in 2023, followed by Basilan at 33.7 percent, Cotabato City at 33.3 percent, Tawi-tawi at 32.3 percent and Maguindanao at 30.4 percent. The PSA noted that the five provinces were included in the group of provinces with the highest poverty incidence among families in 2023.

Leaders of Maguindanao del Sur believe that the province can do much better.

According to reports, Presidential Adviser on Muslim Affairs Hadj Almarim Tillah has underscored the need for leaders who understand the region’s people, values and governance.

Special Assistant to the President Anton Lagdameo and Office of Presidential Adviser on Peace, Reconciliation and Unity chief Carlito Galvez have submitted their courtesy resignations but the President has yet to decide.

Political leaders of Maguindanao del Sur have reportedly blamed the two for the surge of violence in the Bangsamoro region and have said that the two are unfit to resolve Bangsamoro issues.

The group has urged the President to appoint instead more capable and culturally grounded individuals who can effectively handle Mindanao’s affairs.

They said the replacements should genuinely foster cohesion rather than division, and vigorously push the social and economic development of the Bangsamoro region.

Lagdameo, meanwhile, has said that a similarly large group of Maguindanao mayors are behind him.

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