Tag: Federal Court

Justice Coal Company Ordered To Surrender Helicopter In 72 Hours

The sale of the 2009 Bell helicopter, valued at $1.5 million, would help to partially settle a $10 million debt Bluestone Resources owes to a Caribbean investment firm.

A federal judge in Virginia has ordered one of Gov. Jim Justice’s coal companies to surrender a helicopter to a third party in Texas.

The sale of the 2009 Bell helicopter, valued at $1.5 million, would help to partially settle a $10 million debt Bluestone Resources owes to a Caribbean investment firm.

In his Friday order, Judge Robert S. Ballou of the U.S. District Court for the Western District of Virginia, gave Bluestone 72 hours to turn over the helicopter to Heli-X of Colleyville, Texas.

If Bluestone fails to do so, U.S. Marshals would seize the helicopter.

Bluestone, based in Roanoke, Virginia, is one of numerous companies owned by the Justice family that owe vast sums of money to their creditors.

There are multiple cases involving Justice’s companies in the Western District of Virginia.

Last month, 1st Source Bank, of South Bend, Indiana, sued Bluestone in the court, charging breach of contract and seeking $4.5 million in damages.

The complaint accuses Bluestone of defaulting on loan agreements and also seeks attorney’s fees and possession of collateral.

According to the complaint, that collateral consists of “equipment owned by Bluestone Coal” and three properties that are part of the Wintergreen Ski Resort near Charlottesville, Virginia.

Another federal judge in Roanoke late last month held Southern Coal in civil contempt. That Justice company failed to reimburse a Charleston insurance company for more than $500,000 in workers’ compensation payments.

Judge Elizabeth Dillon gave Southern Coal seven days to repay BrickStreet Mutual Insurance. After that, the court will impose a $2,500 daily penalty on Southern Coal until it complies.

Justice is a Republican candidate for the U.S. Senate.

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.

Indiana Bank Sues Justice-Owned Coal Company, Seeks $4.5 Million

1st Source Bank, of South Bend, Indiana, filed a complaint this week in the U.S. District Court for the Western District of Virginia.

An Indiana bank that’s a creditor of Bluestone Resources, a coal company owned by the family of Gov. Jim Justice, has sued Bluestone in federal court for breach of contract.

1st Source Bank, of South Bend, Indiana, filed a complaint this week in the U.S. District Court for the Western District of Virginia. 1st Source seeks $4.5 million in damages.

The complaint accuses Bluestone of defaulting on loan agreements and also seeks attorney’s fees and possession of collateral.

According to the complaint, that collateral consists of “equipment owned by Bluestone Coal” and three properties that are part of the Wintergreen Ski Resort near Charlottesville, Virginia.

Bluestone, based in Roanoke, Virginia, was ordered by a federal judge last month to surrender a helicopter to partially settle a $13 million debt owed to another creditor, Caroleng Investments.

Court filings revealed Caroleng to be an offshore shell company incorporated in the Caribbean tax haven of the British Virgin Islands.

1st Source had also claimed a senior interest in the Bell Textron Canada helicopter. Caroleng and 1st Source reached an agreement last month for the sale of the helicopter. The judge must still approve the sale.

Justice, a Republican candidate for the U.S. Senate this year, faces new questions about his businesses and numerous lawsuits seeking repayment of what his companies owe creditors.

Appeals Court Again Rejects Suit Against Mountain Valley Pipeline

The U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that the Virginia landowners cannot sue developers of the Mountain Valley Pipeline for taking their land through eminent domain.

 A federal appeals court has again rejected a bid by Virginia landowners to challenge the construction of a natural gas pipeline.

The U.S. Court of Appeals for the District of Columbia Circuit ruled Tuesday that the Virginia landowners cannot sue developers of the Mountain Valley Pipeline for taking their land through eminent domain.

The same court had earlier rejected the landowners’ case, but the U.S. Supreme Court sent it back for further review.

The Federal Energy Regulatory Commission issued a siting certificate to the pipeline’s builders in 2017. It enabled them to use eminent domain to acquire property for the 303-mile pipeline.

The $7.2 billion project is over its original budget and past its scheduled completion. When finished in the coming months, it will transport as much as two billion cubic feet of gas a day.

Justice Creditors Agree To Sale Of Coal Company’s Helicopter

Caroleng Investments, a Caribbean company, and First Source Bank, of South Bend, Indiana, have submitted a joint proposal to sell a helicopter owned by Bluestone Resources.

Two of Gov. Jim Justice’s creditors have agreed to sell a helicopter to help settle a debt.

Caroleng Investments, a Caribbean company, and First Source Bank, of South Bend, Indiana, have submitted a joint proposal to sell a helicopter owned by Bluestone Resources.

Bluestone, which is one of Justice’s numerous companies, did not participate in the agreement, filed Friday in the U.S. District Court for the Western District of Virginia.

Bluestone owes Caroleng about $10 million and sought the helicopter as a partial repayment.

Bluestone and First Source tried unsuccessfully to convince a federal judge to stay an order for U.S. Marshals to seize the helicopter on Caroleng’s behalf.

The agreement directs Bluestone to surrender the 2009 Bell helicopter to a third party, Heli-X, of Colleyville, Texas, within 72 hours of the court’s issuance of an initial sale order.

A judge will have to approve the agreement.

Justice Hears From 2016 Rival In Lawsuit Against Carter Bank

Booth Goodwin, the former federal prosecutor and a Democrat who lost to Justice in the 2016 primary for governor, represents Carter.

The attorney defending a Virginia bank that was sued by Gov. Jim Justice is a familiar foe of the governor.

Last month, Justice sued one of his biggest creditors, Carter Bank, in federal court, seeking $1 billion in damages.

Carter’s attorney this week filed a motion to dismiss the case. That attorney is Booth Goodwin, the former federal prosecutor and a Democrat who lost to Justice in the 2016 primary for governor.

In the motion, Goodwin accuses Justice of engaging in a pattern of defaulting on his loans and filing frivolous lawsuits against his creditor. Goodwin calls Justice’s claim of economic duress “laughable” and refers to the governor as “a one-time billionaire.”

Goodwin says Justice owes Carter hundreds of millions of dollars and the bank has worked “repeatedly and cooperatively” to restructure and extend the loans over the years.

Justice, his wife, Cathy, his son, Jay, and the Greenbrier Hotel are among the plaintiffs in the suit.

Justice filed a similar lawsuit against Carter Bank in 2021 but later dropped it.

Justice beat Goodwin in the 2016 primary and was elected governor as a Democrat, but switched parties the following year. He was re-elected in 2020 as a Republican and is now a Republican candidate for U.S. Senate.

Goodwin, a former U.S. Attorney, prosecuted coal executive Don Blankenship. Blankenship was the former CEO of Massey Energy. An explosion at Massey’s Upper Big Branch mine in 2010 killed 29 workers.

In 2015, a jury found Blankenship guilty of conspiracy to violate federal mine safety and health laws. He was sentenced to a year in prison and ordered to pay a $250,000 fine. Blankenship has tried, unsuccessfully, to appeal his conviction.

Goodwin returned to private practice in Charleston in 2016.

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