A recent court filing reveals a significant legal battle over the sale of a mobile home park in Rock Falls, Illinois. Riverside MHP LLC has filed a complaint against Franklin E. DeHaan Living Trust and Franklin E. DeHaan individually in the United States District Court for the Northern District of Illinois on December 3, 2024. The lawsuit accuses the defendants of selling a business that was not as represented at the time of purchase.
The plaintiff, Riverside MHP LLC, claims to have purchased the Riverside Mobile Home Park under false pretenses on May 2, 2022. They allege that they were led to believe they were buying a licensed and functioning business when, in fact, it was an unlicensed and poorly maintained property with revoked licenses due to health and environmental violations. The lawsuit states that these issues were concealed by the seller, leading Riverside MHP LLC to incur damages exceeding $600,000 to make the property habitable and regain its operational license. The complaint also highlights an agreement known as the Note Reduction Agreement, which allowed for a reduction in payment if certain conditions were not met by the defendants.
Riverside MHP LLC further accuses Franklin E. DeHaan and his trust of breaching several representations and warranties outlined in their Purchase Agreement. These breaches include falsely claiming compliance with all necessary laws and regulations when the property's license had expired years before due to ongoing violations. Additionally, it is alleged that despite being aware of enforcement actions threatening closure of the park by state authorities prior to closing, these facts were never disclosed to Riverside MHP LLC. As part of their legal action, Riverside is seeking both declaratory judgment regarding their obligations under existing agreements and compensatory damages for losses incurred due to these misrepresentations.
The plaintiff's legal team is spearheaded by Andrew P. Young from Snell and Wilmer L.L.P., while no information about defense attorneys or judges presiding over this case is provided within this document. The case identification number is 1:24-cv-12412.