For not securing a business permit, the court denied the application for the issuance of a temporary restraining order and preliminary injunction involving the operation of the John Hay Springs Inc. (JHSI).

Regional Trial Court Branch 60 Presiding Judge Antonio Reyes wrote, “Let this court be categorical that it does not have the slightest doubt that John Hay Management Corporation is vested with regulatory powers to carry out its duties and obligations as mandated under the law for if it does not have such power, who then should exercise the same?

“If it does not have such power as submitted by John Hay Springs, then each and every issue that JHMC will experience with other establishments operating within its jurisdiction will always be referred for resolution to other entities and agencies, confining its jurisdiction to mere ceremonial ones that simply is not the intention of the law that created JHMC.”

The court further said that JHMC was accorded with some leeway to see to it that all laws are followed by establishments that are given the privilege to operate inside Camp John Hay and accorded with regulatory powers to sanction establishments that do not follow regulations.

“JHMC is the only entity that knows whether JHSI has complied with the basic rules and regulations entitling it to operate within the John Hay economic zone.”

It also said that when JHMC issued the cease and desist order against JHSI in March 26, it was merely exercising its function per mandate of the law.

“Such act of issuing the same cannot be considered despotic, whimsical and without basis for the simple reason that JHSI failed to renew its operational permit, a continuing requirement for its operation. JHMC will not issue questioned issuances if only JHSI renewed on time its operational permit.”

Reyes said that for three years, JHSI failed to secure a permit before the cease and desist order that JHMC issued. “JHSI cannot just hide its violations and continue to violate rules and regulations and hide from its cloak that JHMC does not have the regulatory power.  If this court goes with the line of thinking of JHSI then it in turn rewards JHSI for its violations of not having renewed its operational permit.”

The court added, “Blame must not be cast upon JHMC, JHSI is where it is because of its fault and it is a time honored precept that one must not benefit from his own wrong.”

Because it did not renew its permit and is operating without the necessary operational permits, the issuance of a cease and desist order from JHMC is proper and it does not have the right to operate, “it does not have the right to be protected.”

In denying the TRO and preliminary injunction applied for by JHMC, the court also ordered that the case be referred for arbitration and mediation.