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August hearing set in Broadmoor Valley lawsuit

MARSHALL — A lawsuit against the owners of the Broadmoor Valley manufactured home park in Marshall has continued to move forward this summer, according to Lyon County District Court records.

The documents indicated that both the Minnesota Attorney General’s Office and Schierholz and Associates, Inc., will be asking for a judgment in the case.

The Attorney General’s Office is seeking more than $3 million in civil penalties against Schierholz and Associates, while Schierholz and Associates is seeking to have the lawsuit dismissed, court documents said.

A hearing in the case has been set for Aug. 28.

The Minnesota Attorney General’s Office sued the Broadmoor Valley owners in 2021. The lawsuit alleged that Schierholz and Associates had failed to maintain the streets and mobile home park to state standards, that the owners retaliated against residents, and that residents were charged unlawfully high fees for late rent payments.

In 2023, the lawsuit was temporarily put on hold while Schierholz and Associates filed for Chapter 11 bankruptcy in Colorado. Court proceedings have continued this year. Court documents filed July 31 said the Attorney General’s Office plans to ask the court for a summary judgment.

In a memorandum, the Attorney General’s Office said the state is seeking a total of $3.87 million in civil penalties against Schierholz and Associates, as well as a total of about $13,970 in restitution to residents for unlawful fees.

The state is also asking for the court to require a variety of repairs and updates be done at Broadmoor Valley, including reconstructing streets; replacing existing water, electrical and gas systems; removing vacant homes; and establishing a financial account to hold current park residents’ security deposits.

Attorneys for Schierholz and Associates also filed a memorandum, asking for the court to rule in their favor, and to dismiss the lawsuit with prejudice.

A motion hearing in the lawsuit is scheduled for Aug. 28. Lyon County District Court records said jury trial dates had also been set for January 2025.

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