The Bases Conversion and Development Authority (BCDA) and John Hay Management Corporation (JHMC) said they welcomed the decision of the Supreme Court (SC), allowing them to recover land in the John Hay Special Economic Zone (SEZ) in relation to its legal dispute with CJH Development Corp (DevCo).

In a joint statement on April 11, both parties said the SC decision allows them to regain 247-hectares of property in the ecozone, and "utilize it for the full interest and benefit of the government and of the Filipino people."

On April 10, the SC disclosed its decision, penned by Associate Justice Japar B. Dimaampao, upholding the Regional Trial Court (RTC)'s arbitral ruling that orders CJH DevCo "to vacate a portion of the John Hay SEZ it leased from the BCDA," contradicting the Court of Appeals (COA)'s rulings throughout the case.

Out of the total 625-hectare John Hay SEZ, owned by BCDA under the government's past policy to convert former US military bases into special zones, 247 hectares of leased property was awarded to CJH DevCo through a lease agreement with BCDA (as lessor)., Fil-Estate Management, Inc., and Penta Capital Investment Corporation (as co-lessees) for the "use, management, and operation of the property."

According to the SC, the agreement indicates that BCDA "remains the owner of the leased property, while CJH DevCo shall own improvements it will introduce, with an obligation to transfer ownership of improvements to BCDA at the end of the lease agreement." 

But disputes over lease obligations led CJH DevCo to file a complaint against BCDA with the Philippine Dispute Resolution Center, Inc. (PDRCI), who found that "both parties were guilty of breaches of their obligations under the agreement, thus its mutual rescission was warranted."

The arbitral ruling (Final Award), which the RTC confirmed, ordered mutual restitution, specifically ordering CJH DevCo to return the lease property and its improvements to BCDA. Meanwhile, BCDA shall refund rent already paid by the firm amounting to P1.42 billion.

Upon issuance of the Writ of Execution, CJH DevCo and its sub-lessees were served a Notice to Vacate the property, with BCDA ordered a demand to pay the required amount within 30 days.

CJH DevCo filed a "Very Urgent Omnibus Motion" to the RTC, calling on the court to exempt its sub-lessees from the enforcement of the Notice to Vacate. It also filed a petition for certiorari and prohibition before the CA.

The sub-lessee also filed a separate petition-in-intervention, saying their inclusion in the RTC Order and Writ of Execution was "unfounded and violative of due process."

As a result, the CA "enjoined the RTC from enforcing the Final Award, Writ of Execution, and Notice to Vacate against the sub-lessees, “until their respective rights and interests are determined upon compulsory arbitration or as may be adjudicated by the regular courts.”

This led BCDA to file a petition before the SC, which said that CJH DevCo had to give the leased property and any renovations back to BCDA. BCDA should then reimburse CJH DevCo for the rent that was already paid.