Richard Squire says a five-year legal battle with the operators of a caravan park has ruined his finances, his mental health, and any certainty for his retirement.

The 79-year-old is one of the residents locked in a costly legal battle with the directors of Coolah Tourist Park, owners of Coolah Caravan Park. 

"There was friendship and that's where it all went pear shaped — thinking they were friends," Mr Squire said.

Mr Squire is part of a class action lawsuit that took the caravan park at Coolah, 135 kilometres north-east of Dubbo, to the Supreme Court and lost.

The group had alleged the directors' "misleading and deceptive" statements led them to believe they would be entitled to certain land rights if they bought shares in the park.

Disputes arose in 2016 over the management of the park, leading to a legal battle in 2018.

The Supreme Court rejected all charges, and the group is launching an appeal in an attempt to overturn the decision.

The cost of the legal battle has eclipsed the value of the land they are fighting over, with both sides claiming to have spent well over a million dollars so far.

Dream turns into nightmare

The original proposal was known as "Janet's Dream", a caravan park jointly owned by retirees to use as a home base when not travelling around Australia.

In a statement, a Coolah Caravan Park spokesperson said the dream had turned into a "nightmare".

"The hopes and dreams of the owners of Coolah Caravan Park, Graeme Booker and Janet Kelly, have been dashed by a small group of park residents," the spokesperson said.

Park director Janet Kelly said they would be taking counter legal action against six of the residents for unpaid site fees.

David Darch said he was one of the residents who had boycotted site fees while the legal battle continued.

The company had increased site fees from $65 to $185 per week before the Supreme Court ordered the fees be set to $125.

A park spokesperson said those fees were currently $81.89 per week for permanent residents.

The $185 fee increase happened after the original company Coolah Home Base went into administration, and the Park was sold back to another company belonging to Mr Booker and Ms Kelly, Coolah Caravan Park.

The plaintiffs had asked the court to reverse the transfer to Coolah Tourist Park, but it was not upheld.

A cautionary tale

Marnie Robertson said everyone felt backed into a corner.

"I'm on [anti-anxiety] medication like most people here. We've found it extremely difficult coping over the years because it's taken so long and it's worn us down," Ms Robertson said. 

"I can't afford to buy anywhere else. I just don't have the money to do that, so there's no option."

Housing for the Aged Action Group senior retirement housing worker Shane McGrath said this case was a "cautionary tale" for other seniors who were planning their retirement.

"It's very important that they understand the rights they have there, the obligations they'll have there, and what their options will be if something goes wrong," Mr McGrath said.

He said the action group wanted stronger protections for retired residents, including more regulations to ensure "fairer" fees and an ombudsman to handle these kinds of disputes.

A park spokesperson said they do not believe the appeal case has any merit.

"Therefore an application has been made seeking that they lodge with the court a surety of $100,000 to pay for our legal costs if they lose.

"The law is 'everyone must pay for the debts they incur'."