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ANSWER TO PLAINTIFFS' ALLEGATIONS AS TO <br />NATURE OF PROCEEDING, PARTIES, JURISDICTION AND VENUE <br />1. Paragraph 1 of the Complaint appears to contain no factual allegations, to the <br />extent it does so they are denied. <br />2. Defendant does not contest venue in this Court. <br />Admit. <br />4. Defendant is without knowledge sufficient to admit or deny the existence of <br />leases or other agreements alleged in paragraph 4 of the Complaint, and on that basis denies such <br />allegations. Defendant affirmatively states that no such leases or agreements have ever been <br />recorded in the real estate records of Montrose County. <br />5. Defendant admits JoEllen Turner and Michael Morgan purported to act on their <br />own behalf during the proceedings before the MLRB and denies the remaining allegations of <br />paragraph 4 of the Complaint. <br />6. Admit. <br />7. Deny. <br />8. Defendant disputes that this Court has subject matter jurisdiction because some or <br />all of the plaintiffs may lack standing to bring this action. <br />9. Frank and Mary Lou Morgan did not participate in the administrative proceedings <br />that are subject to this appeal and therefore are not proper parties to the appeal. JoEllen Turner <br />and Michael Morgan, while they participated in the proceedings below, may lack standing to do <br />so or to bring this appeal. Defendant therefore denies the allegations of paragraph 9 of the <br />Complaint. <br />ANSWER TO PLAINTIFFS' ALLEGATIONS STYLED AS "LEGAL CLAIMS" <br />10. Defendant incorporates by reference its responses to paragraphs 1 through 9 of the <br />Complaint above as if set forth in full herein. <br />11. Defendant denies that Frank and Mary Lou Morgan appeared or had the right to <br />do so, having failed to become parties to the proceeding. Defendant admits the remaining <br />allegations of paragraph 11 of the Complaint. <br />12. Admit. On information and belief, a written order has been provided plaintiffs' <br />counsel as of the date of this Answer. <br />13. Defendant is without knowledge or information sufficient to admit or deny the <br />allegations of paragraph 13 of the Complaint, and on that basis denies them. <br />(00047771.11 <br />2 <br />