LINCOLN, Del. - A decision in the long-running dispute between Blue Beach Bungalows DE LLC and the Delaware Department of Justice’s Consumer Protection Unit has granted partial relief to the Pine Haven owners, while upholding several penalties. The close to $800,000 in penalties were ordered to the owners in April.
The Superior Court reviewed allegations stemming from Blue Beach Bungalows’ management of Pine Haven Park in Lincoln. The Delaware Department of Justice accused the company of violating the Consumer Fraud Act, the Manufactured Homes and Manufactured Home Communities Act, and a Cease and Desist Order issued in April. These allegations included claims of deceptive practices, excessive rent collection and violations of residents' rights.
Judge Craig Karsnitz’s decision vacated $331,500 in penalties, citing insufficient evidence for several claims, particularly regarding communication with park residents and the collection of excessive rent. However, the court upheld $454,500 in fines related to violations of consumer protection laws, including deceptive letters, failure to comply with statutory requirements, and violations of a Cease and Desist Order.
In Jan. 2023, Blue Beach Bungalows was also issued a Notice of Violation by DNREC for wastewater violations after a month-long investigation into reports of illegal discharge. Neighbors had told CoastTV that this caused deplorable living conditions in the community.
The property was purchased by Blue Beach Bungalows in Sept. 2022 and at the time cited these problems having originated with the previous owner.