MHC Operating Limited Partnership v. The Nicholson Family Partnership CA6

I. INTRODUCTION

Defendant The Nicholson Family Partnership (Nicholson Partnership) leases land to plaintiff MHC Operating Limited Partnership (MHC). The ground leases expire on August 31, 2022. Plaintiff MHC manages a mobilehome park on the land. Defendant has demanded that plaintiff return the land to its preexisting state, that is, without any mobilehome park residents or their property, upon the expiration of the ground leases. Plaintiff MHC has refused and, along with two businesses that operate at the park, plaintiff CountryPlace Mortgage, Ltd. (CountryPlace Mortgage) and plaintiff ECHO Financing LLC (ECHO Financing), and a resident who owns a home at the park, plaintiff Stacy Winkelmann, filed a civil action for declaratory relief regarding the issue. Defendant filed a motion to compel arbitration and to stay the litigation. Defendant contended that an arbitration with plaintiff MHC should proceed first pursuant to an arbitration provision in their ground leases, and that any remaining claims by the other three plaintiffs (CountryPlace Mortgage, ECHO Financing, and Winkelmann) should be litigated thereafter in court. Defendant also argued that the claims by these other…