Case Digest (G.R. No. 156407)
Facts:
The Bases Conversion and Development Authority (BCDA), chartered under Republic Act No. 7227, publicly bid in 1996 for a 247-hectare lease of the John Hay Special Economic Zone in Baguio City. On October 19, 1996, BCDA, Fil-Estate Management, Inc., Penta Capital Investment Corporation, and CJH Development Corporation (CJH DevCo) executed a Lease Agreement by which BCDA retained ownership of the land while CJH DevCo acquired ownership of improvements it constructed and the right to sublease to third parties. Disputes arose over obligations under the Lease Agreement, subsequent memoranda of agreement, and the Restructured Memorandum of Agreement of July 1, 2008, prompting CJH DevCo to initiate arbitration before the Philippine Dispute Resolution Center, Inc. (PDRCI). On February 11, 2015, the arbitral tribunal rendered a Final Award ordering mutual rescission of the agreements, mutual restitution under Article 1191 of the New Civil Code, CJH DevCo’s vacation of the leased premiCase Digest (G.R. No. 156407)
Facts:
- Parties and Background
- The Bases Conversion and Development Authority (BCDA) is a government corporation created under Republic Act No. 7227 to convert former U.S. military bases into productive civilian uses, including the 695-hectare Camp John Hay in Baguio City.
- CJH Development Corporation (CJH DevCo), in consortium with Fil-Estate Management, Inc. and Penta Capital Investment Corporation, won the public bid for a 247-hectare portion of the John Hay Special Economic Zone and entered into a 1996 Lease Agreement with BCDA, authorizing CJH DevCo to develop, manage, operate, and sublease the property.
- Arbitration Proceedings
- Disputes arose over obligations under the 1996 Lease Agreement and subsequent Memoranda of Agreement (2000, 2003) and the Restructured Memorandum of Agreement (2008). Under the arbitration clause, CJH DevCo filed PDRCI Case No. 60-2012.
- On February 11, 2015, the arbitral tribunal rendered a Final Award rescinding the lease by mutual mistake and breach, ordering (a) CJH DevCo to vacate and return the leased premises with all improvements, and (b) BCDA to refund PHP 1,421,096,052.00 to CJH DevCo.
- Judicial and Appellate Proceedings
- Both BCDA and CJH DevCo petitioned the Regional Trial Court (RTC) of Baguio City to confirm the Final Award. On March 27, 2015, RTC Branch 6 confirmed the award in toto, issued a writ of execution ordering vacation and delivery of premises, and served notices to vacate on CJH DevCo and its sub-lessees.
- CJH DevCo filed an Omnibus Motion in RTC to exclude sub-lessees from enforcement and to require BCDA’s payment in legal tender; when RTC did not act before the notice period expired, CJH DevCo and the sub-lessees filed separate petitions for certiorari and prohibition with the Court of Appeals (CA). On July 30, 2015, the CA (a) enjoined execution against CJH DevCo until BCDA paid the award; (b) excluded sub-lessees; and (c) imposed additional obligations on BCDA and ordered new arbitration.
Issues:
- In G.R. No. 219421 (BCDA v. CJH DevCo et al.)
- Is a CA certiorari petition under Rule 65 the proper remedy to challenge execution of a court-confirmed arbitral award?
- Did the CA err in (a) enjoining execution against sub-lessees, (b) conditioning CJH DevCo’s vacation on BCDA’s payment, and (c) ordering BCDA and sub-lessees to submit to new arbitration?
- In G.R. No. 241772 (CJH DevCo v. COA and BCDA)
- Did the Commission on Audit (COA) commit grave abuse of discretion in dismissing CJH DevCo’s petition for enforcement of its monetary award despite the arbitral award’s finality?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)