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Local News in Brief : Dana Point : Leaseholders File Suit Against Park Tenants

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In the latest round of a battle for control of a Dana Point mobile home park, its operators have filed suit against a tenants group that is seeking to purchase the property.

The suit, filed Friday in Orange County Superior Court, claims that the tenants group has interfered with efforts by Dana Point Mobilehome Estates, a partnership that holds the lease to the park, to negotiate a new contract with Unocal Inc., which owns the park property.

The suit also names Mitchell Management Co., the firm that is assisting the tenants in their effort to buy the property from Unocal. According to the suit, Mitchell Management has encouraged tenants to fabricate complaints about poor maintenance at the park--complaints that could invalidate the partnership’s lease with Unocal.

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The conflict began earlier this year after Unocal notified the partnership that the monthly rent for the 10-acre tract near Coast Highway would be raised from $3,200 to $33,000. The partnership refused to pay the increase and filed suit challenging the new rent. Unocal, in turn, filed a countersuit alleging breach of contract.

In the meantime, the partnership announced $350-per-month rent increases for the tenants. Seventy tenants began a rent strike and formed a corporation to bid for the park property, valued at $4.8 million.

In another suit filed Friday, the partnership accused Unocal of attempting to void its lease contract, which expired in March but included renewal options.

The partnership is seeking more than $5 million in damages in the suits.

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