Tag: Civil Penalty

Judge Holds Justice Coal Company In Civil Contempt, Threatens Fine

Southern Coal did not comply with a September court order to repay a Charleston insurance company more than $500,000 in workers’ compensation claims.

A federal judge has held a coal company owned by the Justice family in civil contempt.

Southern Coal did not comply with a September court order to repay a Charleston insurance company more than $500,000 in workers’ compensation claims.

So Judge Elizabeth Dillon of the U.S. District Court for the Western District of Virginia, earlier this week gave Southern Coal seven days to repay BrickStreet Mutual Insurance.

After that, Southern Coal will have to pay a penalty of $2,500 for every day it does not comply.

“It is well-settled that the imposition of a daily fine to coerce a party into complying with a court’s order is within a district court’s civil contempt power,” Dillon’s ruling said. “As requested by BrickStreet, and there being no opposition by Southern Coal, the court will also order Southern Coal to pay BrickStreet’s reasonable attorneys’ fees and costs incurred in pursuing this remedy.”

Southern Coal is one of the numerous companies the Justice Family owns. Southern Coal argued that it was unable to comply with the court’s September order because the company is insolvent.

Dillon noted in her ruling that Southern Coal had provided no evidence that it had no ability to repay BrickStreet other than simply saying it couldn’t.

“Here, Southern Coal has not affirmatively produced evidence that it is presently unable to comply with the Final Order other than the conclusory assertion that it has ‘no present ability to pay and comply with the Court’s judgment order,’” Dillon’s ruling said.

Justice’s companies are involved in multiple active cases in the Western District of Virginia both as plaintiffs and defendants. The companies owe creditors tens of millions of dollars. The lenders have sought to seize property, including resorts and a helicopter.

Southern Coal and many other Justice family companies are headquartered in Roanoke, Virginia. Gov. Jim Justice is a Republican U.S. Senate candidate this year.

Next Phase In Federal Trial Will Determine Penalties For Union Carbide

The maximum penalty Union Carbide would pay for violating the Clean Water Act at a landfill it owns in South Charleston: $64,618 per violation per day.

A five year federal court case involving Union Carbide is moving into the next phase, and the company could have to pay pay a steep civil penalty.

The maximum penalty Union Carbide would pay for violating the Clean Water Act at a landfill it owns in South Charleston: $64,618 per violation per day.

In late September, the U.S. District Court for the Southern District of West Virginia ruled that the company has been in violation of the federal law since 2015. A landfill that discharges stormwater into navigable U.S. waterways must seek a permit under the Clean Water Act.

Union Carbide sought no such permit for the Filmont Landfill. The site is adjacent to Davis Creek, a tributary of the Kanawha River.

Union Carbide operated the landfill for about 30 years, but its existence wasn’t widely known until a 2018 lawsuit in federal court in Charleston.

The court also determined the Filmont Landfill was an illegal open dump under the Resource Conservation and Recovery Act. Union Carbide and Courtland Co., the plaintiff in the case, may both have to pay costs related to the cleanup of the site. Courtland’s South Charleston property is adjacent to Union Carbide’s.

The court will ultimately determine what penalty Union Carbide will pay, but added together, one violation over eight years could cost more than $188 million.

Union Carbide and Courtland will bring in expert witnesses to determine how many of those days Union Carbide was in violation.

Courtland has requested that the penalty phase of the trial take place in April 2024. The trial will determine other costs, including legal fees.

Union Carbide is a subsidiary of Dow Chemical.

Justice Company Could Face Clean Water Act Lawsuit

Bluestone Coke is one of the numerous companies owned by the family of Justice, who’s running for the U.S. Senate.

An environmental group has threatened to sue a company owned by the family of Gov. Jim Justice over water pollution violations.

The Southern Environmental Law Center has told Bluestone Coke it will bring a lawsuit in federal court under the Clean Water Act unless the company cleans up pollution from its plant in North Birmingham, Alabama.

Bluestone Coke is one of the numerous companies owned by the family of Justice, who’s running for the U.S. Senate. 

The plant is not currently in operation. Late last year, Bluestone Coke agreed to a $925,000 settlement with the local health department over air pollution from the plant.

The Southern Environmental Law Center said the company still owes $283,000 to the health department.

The U.S. Justice Department recently took action against the Justice companies for failing to pay more than $5 million in federal civil penalties.

The governor’s office did not immediately respond to a request for comment.

Owner Of 2 W.Va. Pharmacies Fined In Prescription Probe

The owner of two West Virginia pharmacies has agreed to pay $300,000 in civil penalties to settle allegations that they filled illegitimate prescriptions in violation of federal law.

Federal prosecutors said Beckley Pharmacy’s two locations and Bee Well Pharmacy in South Charleston filled prescriptions that were not for a legitimate medical purpose from 2015 to 2020.

Under the settlement announced Monday, Bee Well Pharmacy will be unable to fill prescriptions for controlled substances after agreeing to surrender its Drug Enforcement Administration registration. The Beckley locations will retain their registrations but must adhere to more stringent regulatory and reporting obligations, prosecutors said.

“Pharmacies must keep accurate records and maintain strong controls when handling controlled substances,” acting U.S. Attorney Lisa G. Johnston said in a statement. ”Those that fail to do so open the door to the potential diversion of drugs, the illegal distribution, and abuse of these drugs.”

Settlement Approved for Coal Mines Owned by Governor-Elect

A federal judge has approved a settlement requiring pollution reductions and a $900,000 civil penalty by Appalachian coal mines owned by West Virginia Governor-elect Jim Justice.

The Environmental Protection Agency and Department of Justice announced the settlement in September with Southern Coal Corp. and 26 affiliates.

The settlement resolves allegations of Clean Water Act violations from Justice-owned mines in Alabama, Kentucky, Tennessee, Virginia and West Virginia.

It requires Southern Coal to use an EPA-approved environmental management system, undergo compliance auditing, implement data tracking, and pay escalating penalties for future violations. It also calls for the company to set up a public website about water test results and to produce a $4.5 million letter of credit to ensure work is done.

U.S. District Judge Glen Conrad approved the consent decree this week, finding it “fair, adequate and reasonable” and not against the public interest.

Calls to Southern Coal and its attorney were not immediately returned Thursday. Company spokesman Tom Lusk said in September that most of the violations cited were from permits inherited from coal companies not previously owned by Southern Coal.

The civil penalty will be split between the federal government and Alabama, Kentucky, Tennessee, and Virginia. West Virginia withdrew from the lawsuit talks in early 2015, saying the company’s compliance had improved under state enforcement since 2008.

Assistant U.S. Attorney General John Cruden wrote in a brief last week, supporting approval, that the settlement followed lengthy negotiations. “It ensures compliance at existing operations, reaches beyond violating facilities to impose company-wide preventive measures, and addresses environmental concerns broader in scope than those alleged in the complaint — all the while avoiding the delay, risk, and expense of protracted litigation,” he said.

The federal complaint, filed along with the proposed settlement in September, said the coal companies exceeded their permits for water pollution discharges or failed to sample water and monitor and report discharges “on numerous occasions.” Environmental Protection Agency enforcement officer Laurie Ireland cited 852 violations in 2012, dropping to 405 last year and down to 272 so far year. There have been “notable improvements” in the mines’ compliance since negotiations began in 2014, she wrote in a court document filed Dec. 2.

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