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Bankrutpcy News » Bankruptcy

California mobile home park battling residents as it goes through the bankruptcy process

By Eric Sanderson
July 20th, 2011

An ongoing battle between the landlord of a California mobile home park and its residents includes a bankruptcy filing, and now a stalled multi-million dollar failure-to-maintain lawsuit, according to the Orange County Register.

An ongoing battle between the landlord of a California mobile home park and its residents includes a bankruptcy filing, and now a stalled multi-million dollar failure-to-maintain lawsuit, according to the Orange County Register.

Capistrano Terrace Ltd, owners of the Capistrano Terrace Mobile Home Park in San Juan, filed for bankruptcy protection in the U.S. Bankruptcy Court's Central District on July 12 just hours before its residents were offered a $4.85 million settlement by insurer, Columbia Casualty, according to the news source.

The landlord has attempted to close down the park in the past and now, if the matter is settled in bankruptcy court, may not have to pay relocation fees for the residents, the news source states.

"They have an ulterior motive," Ken Turek, one of the park residents' attorneys, told the news source, concerning the bankruptcy filing. "I think they're trying to get out of relocation payments."

The multi-million dollar settlement could also be in jeopardy.

Edward Hays, an attorney for Capistrano Terrace Ltd, told the news source he doesn't see the settlement passing unless it's approved by the bankruptcy court.



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