This affects me as well. 
in /etc/mysql/conf.d there was a symlink to /home/user/my.cnf[mysql]
-----------------------------------------begin my.cnf------------------------
default-character-set = utf8

[mysqld]

default-character-set = utf8

character-set-server = utf8
character_set_database = utf8

-----------------------------------------begin
my.cnf------------------------

After I removed the symlink I was able to start/restart mysql.

-- 
infinite loop in /etc/init/mysql.conf if mysqld is not running.
https://bugs.launchpad.net/bugs/551130
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