Submit to arbitration, court orders BCDA

Manila, Philippines -  The Camp John Hay Development Corp. (CJHDevCo), developer of Camp John Hay in Baguio City, has scored a major legal victory against the Bases Conversion and Development Authority (BCDA) after a Baguio City judge ordered the state-run firm to submit to arbitration in its dispute on lease payments with CJHDevCo.

In a decision, Judge Cecilia Corazon Dulay-Archog of the Baguio City First Judicial Region Branch 6, granted CJHDevCo’s petition to compel the BCDA to submit to the pending arbitration proceedings it has initiated at the Philippine Dispute Resolution Center Inc.

Archog said the 2008 restructuring memorandum of agreement (RMOA) has 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,” Archog said.

The BCDA “never questioned the validity of the arbitration clause in the RMOA as cited. The Court finds the arbitration clause valid, existing and enforceable,” Archog added. – With Edu Punay