A Baguio City Regional Trial Court (RTC) has granted a petition by the Camp John Hay developer, CJH Development Corp. (CJHDevCo) to compel the Bases Conversion Development Authority (BCDA)  to submit to arbitration for resolution of all disputes involving the development of 247 hectares of the former American rest and recreation base.
In a nine-page order dated July 13, Acting Presiding Judge Cecilia Corazon Dulay-Archog of RTC Branch 6 granted CJHDevCo’s petition to compel the BCDA to submit itself to the pending arbitration initiated by CJHDevCo at the Philippine Dispute Resolution Center Inc. (PDRCI).
“The court finds the arbitration clause valid, existing and enforceable,” Judge Dulay-Archog ruled, even as she directed BCDA to submit itself to the pending arbitration proceedings.
Last January 2012, CJHDevCo served a notice of rescission to BCDA of the 2008 restructuring memorandum of agreement (RMoA) on account of BCDA’s continuing breach of its obligation to establish a functioning one-stop action center (OSAC).  The OSAC was the contracted mechanism under which BCDA guaranteed issuance of all national and local permits to CJHDevCo’s projects within thirty days.
Also, last January, CJHDevCo filed an arbitration case before the PDRCI for the resolution of its various claims against BCDA arising from the latter’s breach under the 2008 RMoA.
However, the BCDA refused to submit itself to arbitration, prompting the developer to immediately file its petition before the Baguio City RTC to oblige the BCDA to submit to arbitration as provided for in existing agreements between both parties.
Instead of following existing agreements, the BCDA instead has resorted to paid advertisements and press releases in major dailies, to air its side on the dispute.
In arriving at her decision, Judge Dulay-Archog stressed that the RMoA had express provisions for the parties to resort to arbitration in case of dispute.
“Being a party to the RMoA, respondent BCDA must comply and submit itself to arbitration in accordance with its undertaking as contained in the RMoA,” the RTC order stated, noting that “the respondent (BCDA) never questioned the validity of the arbitration clause in the RMoA as cited.”
When reached for comment, CJHDevCo’s executive vice president and chief operating officer Alfredo  Yniguez, said: “The Order of the Judge Cecilia Dulay-Archog of Branch 6, Baguio City court, confirms our position that CJHDevCo is the one following the right path in seeking a peaceful resolution of our disputes with BCDA.”
Yniguez added that “CJHDevCo is vindicated in upholding the rule of law in pursuit of its claims against BCDA. We have not resorted to any expensive smear campaigns to present our case before the public.”
He said “this is a major legal victory for CJHDevCo since in addition to the order of the Baguio court to compel BCDA to arbitrate with us, the Baguio court made a finding that BCDA cannot unilaterally rescind or terminate CJHDevCo’s lease contract over the former US recreation facility since breaches by a party arising from the contract must first be brought and resolved by arbitration and not by extrajudicial action.”
Yniguez was referring to previous paid advertisements by BCDA stating that BCDA had terminated the lease contract of CJHDevCo over the camp.  “Clearly now such paid ads by BCDA have not only been misleading but false, as upheld by the Baguio court,” stressed Mr. Yniguez. “Our buyers and investors can be rest assured that our lease contract over Camp John Hay remains valid and existing,” he said.