John Hay homeowners to sue developer
BAGUIO CITY—Some homeowners at Camp John Hay, caught in the legal skirmish between the government and its developer, are suing the company owned by businessman Robert John Sobrepeña to reclaim their investments, which run up to approximately P450 million.
Around 35 individuals who leased villas and other posh dwellings from Camp John Hay Development Corp. (CJHDevco) have filed third-party claims against the P1.4 billion in rentals that were paid by Sobrepeña’s consortium to the Bases Conversion and Development Authority (BCDA), which the Supreme Court ordered returned in 2024.
The Supreme Court directed the BCDA to give back the P1.4 billion to CJHDevco after it reinstated a 2015 arbiter’s decision to nullify the original 1996 John Hay lease agreement between the government and the developer. In turn, the BCDA gained control of the 247-hectare John Hay Special Economic Zone developed by CJHDevco.
The enforcement of the arbitral ruling was delayed when the John Hay homeowners and other so-called “third parties” asked the courts to protect their contracts, until the high court upheld the arbiter’s decision on April 3, 2024.
The sublessees paid millions of pesos to CJHDevco to live in country homes, forest estates, forest cabins and units at The Manor, Baguio’s lone five-star hotel, until 2046. However, they were evicted by the BCDA after the government took over Camp John Hay on Jan. 6.
These petitioners have since secured new deals with the BCDA to continue staying at Camp John Hay, and were “forced to shell out more money to secure continued possession and enjoyment of the subject premises.”
These homeowners would now want to get back what they paid CJHDevco for “failing to make good on its contractual obligation to ensure peaceful possession and enjoyment” of their leased properties, according to their counsel.
The lawyer reached out to the Inquirer last week, but had asked for anonymity saying his clients did not wish to come out publicly but have consented to release details about their lawsuit.
‘Basic fairness’
After their eviction, the petitioners told the court they submitted to “new contracts of sublease with the BCDA for a term of 25 years or until 2050,” which required them to pay new fees with interest, as well as P1.5 million in security deposit.
“As a matter of elementary logic, the relevant provisions of law and even a sense of basic fairness dictate that CJHDevco should … reimburse the claimant for the assignment price it paid to [their John Hay homes], as well as other necessary, useful and ornamental expenses that it incurred during the period of time it possessed and enjoyed the subject premises,” according to one of the petitions filed before a Baguio Regional Trial Court and the Justice Hall Court Sheriffs, which the Inquirer obtained from the lawyer.
It stated that the sublessees were advised “to proceed against the P1.4-billion rentals that CJHDevco is supposed to be reimbursed by [the government].”
Sobrepeña, in a letter to President Marcos on April 4, had offered to waive the P1.4 billion due to CJHDevco once the government has assured it would recognize and honor the contracts of 189 occupants of condominium units at The Manor, 208 owners of units at Forest Lodge, 56 forest cabin dwellers, 45 owners of estate houses and lots, 38 lot pad owners, and 13 owners of the multimillion-peso log cabins at the former Voice of America area.
However, Sobrepeña said his offer, to include guarantees for 2,500 shares owned by golfers at the John Hay Golf Club, would lapse after 30 days, or in the first week of May.
Malacañang has yet to release any statement about the businessman’s offer.
The petitioners asked the Baguio court “to set aside and segregate the total amount being claimed and otherwise not released to CJHDevco as part of the P1.4 billion back rentals to be paid by BCDA.”
“By allowing the levy of this portion, the right of reimbursement of herein claimants are preserved; pending the final determination of whether or not they are rightfully entitled [to the money],” they said.
The petitioners’ lawyer said the third-party claims also refer to a separate civil lawsuit for damages, as well as “criminal action for syndicated ‘estafa’ against Sobrepeña and CJHDevco,” which may be pursued this coming week in a Pasig City court.
