Justice’s Billion Dollar Lawsuit Transferred To Virginia Court

A federal judge has ruled to move a civil court case involving Gov. Jim Justice from West Virginia to Virginia. 

A federal judge has ruled to move a civil court case involving Gov. Jim Justice from West Virginia to Virginia. 

A network of Justice’s businesses filed the suit against his longtime banker, Carter Bank & Trust, saying the bank engaged in unfair banking practices. 

Justice is suing Carter for about $1 billion. 

The bank asked the court to move the case out of the Mountain State’s federal courthouse in Beckley, contending the majority of the business had been done in Virginia, and that is where the majority of the stakeholders reside. 

Judge Frank Volk ultimately agreed, and the case has been moved to the Western District of Virginia’s federal court in Roanoke. 

This will also move the case out of the state where Justice is the sitting governor and a candidate for a U.S. Senate seat. 

Residents Along Contaminated Creek Just Want Clean Water

In Pineville, West Virginia, a town of 500, residents filled up the front rows of the county courtroom recently. They came to hear the latest legal update on a battle some have been fighting for generations – securing clean water. Bobby Lee Keen and his wife Patsy attended the hearing. “How come they have people living like they’re in a third world country in the United States of America?” asked Bobby Keen.

In Pineville, West Virginia, a town of 500, residents filled up the front rows of the county courtroom recently. They came to hear the latest legal update on a battle some have been fighting for generations – securing clean water. Bobby Lee Keen and his wife Patsy attended the hearing. 

“How come they have people living like they’re in a third world country in the United States of America?” asked Bobby Keen.  

The Keens have lived in their house for 20 years, but they have never had clean drinking water. They say the only way they can drink the orange water that comes out of the faucet is by using it to make coffee. 

Keen said the water quality has gotten worse in the last year, and he and his wife have had stomach issues and rashes. Other residents have reported similar symptoms.

And they’re not sure what could be causing it. Regardless, Keen believes one thing to be true. 

“There’s something getting in that water,” he said. 

One of the three places along the creek where water started coming out, and with it, a white stringy slime.

Courtesy of David Stover

A year ago, down the street from the Keens’ house, water started flowing out of the ground in the middle of a field, forming a pool. All that water led to a mold infestation in a nearby property owner’s house. The water had a rotten egg smell and white stringy slime. 

Who Is Responsible?

Just below the surface of that pungent pool is an old mine, previously owned by the now-defunct Pinnacle Mining Company. 

The West Virginia Department of Environmental Protection (EPA) tested the water and said that the results indicated that it had been polluted by the abandoned mine. 

Nicolas Zegre, a Mountain Hydrologist at West Virginia University (WVU), said holes like the one in Pineville are known as artesian wells. They naturally push water from aquifers to the surface. 

“When you start mining, the geologic layers, the below ground layers,” Zegre said. “You’re fundamentally changing how water is going to flow through the earth.” 

Now, the pool of smelly, murky water has become a steady stream that flows into Indian Creek. 

The DEP ordered Pinnacle to remedy the situation. When Pinnacle failed to act, it took the company to court. 

There is one major problem here. Pinnacle Mining Company no longer legally exists. As part of its bankruptcy, the company’s assets and liabilities were sold. But to whom? 

“That’s the million dollar question,” Matt Hepler, a scientist with Appalachian Voices, said. 

Court documents show Pinnacle was, at least in part, bought by Bluestone Mining Resources and is owned by Gov. Jim Justice. However, Justice said Bluestone is not responsible.

Justice answered this question: “Many people along Indian Creek in Wyoming county are sounding the alarms about water contamination possibly coming from a mine that your company purchased, and now owns. As both the governor and the owner of said company is there anything you are planning on doing for these folks so that they can have clean drinking water?” by saying he is not responsible.

Photo Credit: WV Governor’s Office

“I’m all for them having good clean drinking water. But you can’t, you can’t blame me on this one,” Justice said at one of his regular press briefings. “The companies that we have are so distantly involved in this, it’s unbelievable. You know, the DEP is working on the issue.”

Hepler said this fits into a bigger context of the mess that ensues after a coal company goes bankrupt.

“They can’t even figure out, they’re arguing who that new owner is. So they’re not even sure. They’re just pointing fingers at each other,” Hepler said. 

Which raises another big picture question. 

“Who gets left holding the liability when these coal companies go out?” Hepler asked. 

Will The Problem Be Fixed?

In court on April 4, the presiding Wyoming County Judge Derek Swope demanded the companies figure out who is responsible by their next court date in May. 

Outside the courthouse, community members said they felt disappointed. Richard Altizer has been delivering water bottles to some of the residents affected by the water crisis. He and others were hoping the courts would have ordered Bluestone and Alpha Metallurgical Resources to cease all operations until they fixed some of the problems associated with Pinnacle’s abandoned mine.

Disappointed residents, some affected by the water crisis, leave the court room.

Photo Credit: Briana Heaney/West Virginia Public Broadcasting

“If that judge were to order that mines and the gas companies shut down until that is fixed they’d be out there tomorrow fixing it,” Altizer said.  

In their lawsuit, the DEP and the man whose house was flooded, are asking for injunctive relief. They don’t want money for the damaged property or the health issues the water has caused, they only want what has been broken to be fixed. But residents are frustrated by what they say is a year of inaction.

“Now that the mine gets to operate, and the gas wells keep doing what they’re doing, everything’s hunky-dory with the poor people down here. And it’s frustrating,” Altizer said. “But like I said, we still got legal rights.” 

The community is considering a class action lawsuit. 

Richard Altizer has been delivering water bottles to community members paid for through crowd funding sites and city officials.

Photo Credit: Briana Heaney/West Virginia Public Broadcasting

Is The Water Toxic?

In the meantime, the question looms, is the water safe? 

Grace Denver, an expert on water and its connection to people’s lives, works at WVU’s Center For Resilient Communities. She affirmed what residents have been saying about their everyday use of the water from contaminated wells.  

That can result in huge GI issues, skin rashes,” Denver said. “It can even lead to longer-term things like cancer and things like that.”

Patsy Keen brought photos with her to court in hoping to show someone involved in the legal process what the water was doing to her skin while she was routinely showering in it.

Photo Credit: Briana Heaney/West Virginia Public Broadcasting

Even though the DEP found the mine was the source of the contamination, it said the water quality passes all mine reclamation standards. But members of the community are skeptical. Terry Fletcher, with the DEP, said the agency is doing everything within its power to take on the issue. 

“I know, there’s been kind of a narrative pushed out there that we’re only testing for one to two, three to four things when we’re testing for dozens and dozens of parameters,” Fletcher said.  

But Hepler from Appalachian Voices said the tests that the department has done so far might not show the true water condition. 

“Now when you test the water column, which is just to say test the water without any of that slime in it,” Hepler said. “The water has been coming back fine, according to West Virginia DEP standards.”

Hapler believes the water does pass mine reclamation standards, as well as Clean Water Act standards, but he said that even still that doesn’t translate to the water being safe.

And there is another set of data that is being ignored, said WVU’s Grace Denver. 

“Community members are experts of their own lives,” Denver said. “And so I think like their lived experience of knowing, like recognizing the smell, noticing the color change in their community, and recognizing also if any rashes are appearing, or if they’re feeling funky, I think that is scientific knowledge. And I think that we should be taking these observations from the community a lot more seriously.”

For Bobby Keen, whose faucet still has orange water coming out, he said he isn’t angry at anyone, he just wants his family and community to have access to safe water. 

**Editor’s Note: A previous version of this story said even though the DEP found the mine was the source of the contamination, it said the water quality passes all mine reclamation standards. It has been changed to: Even though the DEP found the mine was the source of what residents believe is contaminated water, it says the water quality passes all state water quality standards.

Voices Of Voters And Wyoming Co. Water Pollution This West Virginia Morning

On this West Virginia Morning, drinking water in Wyoming County is making people sick but it’s unclear who is responsible. Also, a look at voter concerns ahead of May’s primary election.

On this West Virginia Morning, drinking water in Wyoming County is making people sick. But it’s unclear who is responsible for the creek’s pollution, or when residents will have clean water.

Also, with West Virginia primary elections in about three weeks, government reporter Randy Yohe gauges voter concerns and readiness before they head to the polls.

West Virginia Morning is a production of West Virginia Public Broadcasting, which is solely responsible for its content.

Support for our news bureaus comes from Shepherd University.

Chris Schulz produced this episode.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

Justice Calls For More CPS Reporting, Funding In Wake Of Child’s Death

Reports surfaced last week of the death of a 14-year-old girl leading to her mother’s arrest. Gov. Jim Justice said Tuesday that this was not a CPS case.

Reports surfaced last week of the death of a 14-year-old girl found emaciated, and of her mother’s subsequent arrest. Gov. Jim Justice said Tuesday that this was not a Child Protective Services (CPS) case.

According to reporting from Eyewitness News, Julie Anne Stone Miller, 49, of Morrisvale in Boone County was arrested and charged with child neglect causing death last week.

The girl’s grandmother told Chief Deputy Mark Abbott that the girl had not attended school since late 2019 or early 2020 and had barely been out of the house in years.

This detail prompted the media to ask Justice during his weekly media briefing if the girl had been homeschooled and if so, why an academic assessment hadn’t brought attention to her condition.

“I think the answer just got to be just one thing,” Justice said. “The CPS folks, from what I understand, [had] no idea about this, about this child, no idea whatsoever.”

Department of Human Services Cabinet Secretary Cynthia Persily released a statement Monday. The press release provided no further information on the minor who passed away, but in the headline, she called the incident a criminal case.

Justice also said more funding for staffing at Child Protective Services was necessary.

“The more money we have, the better we’ll do,” Justice said. “The more workers we’ll have, the absolute better we’ll do. You know, we have got to understand that we’ve got to step up in every way, and try to do more.”

According to the Child Welfare Dashboard, child welfare positions are 88 percent filled in the state. Most vacancies remain in the Child Protective Service Worker category with 78 vacant positions. Earlier this year, the Department of Human Services announced an easing of the staffing shortages.

Justice asked the public to speak up and speak out if they see something suspicious.

“This is a tragedy that, I mean, it’s unthinkable,” Justice said. “I mean, it’s totally unthinkable. But stuff like this happens. And really, and truly, we got a lot of people out there that may have known of this kid, or whatever, this child, and speak up. I mean, yeah, this, really and truly, this is no different than being diligent, you know, in every way, from the standpoint of, you see somebody that looks suspicious, something that may be possibly going on, speak up. Tell us about all this.”

With Federal Clawback Averted, Justice Renews Calls For Health Funding

With fears of a federal COVID-19 relief fund clawback quashed, Gov. Jim Justice urged lawmakers to restore funding to health and human services in West Virginia.

For weeks, the possible federal clawback of $465 million in COVID-19 relief funding for schools has loomed large in West Virginia.

But on Friday Gov. Jim Justice announced the state would not have to return the funds, which the United States Department of Education initially said were not spent according to federal guidelines.

News of the potential clawback threw a wrench into the final weeks of the West Virginia Legislature’s regular session this year. Out of caution, lawmakers ultimately approved a state budget of $4.9 billion — a figure lower than the $5.22 billion budget Justice proposed in January.

In March, Justice announced plans to hold a special legislative session in May to reexamine budget spending. With the specter of the clawback removed, lawmakers are now looking to bulk up the state budget.

And Justice has expressed a particular focus on restoring funding to West Virginia’s health and human resources.

State lawmakers significantly reduced funding for Medicaid services in this year’s regular legislative session.

This included a reduction of nearly $11 million in funding for the state’s Intellectual and Developmental Disabilities (IDD) Waiver program, which provides residents with disabilities financial support and at-home health services.

During a virtual press briefing Tuesday, Justice said the dismissal of the federal clawback opens the door for restored funding.

“Where we need to concentrate our efforts right off the get-go is to restore the dollars that we pulled out of the budget … for the most needy of our people,” he said. “We didn’t need to [cut funding], and if we don’t watch out we’re going to get our really needy folks in a real mess.”

Lawmakers who supported the cuts during this year’s regular session said the reductions would increase spending transparency and limit unnecessary expenditures.

But opponents of the budget cuts have expressed concern that the lack of funding could broadly reduce Medicaid services for West Virginia residents, including individuals with disabilities.

In March, Justice announced plans to call a special legislative session before May 14, West Virginia’s primary election. He said reexamining the state budget was a top priority for the prospective session.

Meanwhile, state lawmakers have expressed a preference that the session be held later in May, to coincide with interim meetings at the State Capitol.

As of Tuesday, no date for the special session has been finalized.

Federal Court Rejects State Transgender Student Athlete Ban

The ACLU and Lambda Legal, a national LGBTQ rights law firm, brought the case on behalf of a 13-year-old middle school student in Harrison County who wanted to run on her track team.

A federal appeals court struck down West Virginia’s ban on transgender student participation in school sports Tuesday.

The Fourth U.S. Circuit Court of Appeals in Richmond, Virginia, said the 2021 law violated Title IX, the landmark 1972 law that enshrined gender equality in school sports.

The ACLU and Lambda Legal, a national LGBTQ rights law firm, brought the case on behalf of a 13-year-old middle school student in Harrison County who wanted to run on her track team.

“The ruling makes clear that the law is discriminatory,” said Billy Wolfe, an ACLU-WV spokesman, in an email. The student, Becky Pepper-Jackson, is the only one affected by the ruling, Wolfe said, but encouraged others who might be affected to contact the ACLU.

The 2-1 decision, for now, invalidates House Bill 3293, which the legislature enacted and Gov. Jim Justice signed. 

Last year, a U.S. district judge upheld the enforcement of the law, but the Fourth Circuit overruled that decision.

In an emergency appeal last year, West Virginia Attorney General Patrick Morrisey asked the U.S. Supreme Court to allow the state to enforce the law while the Fourth Circuit considered the case. The justices declined.

In a statement Tuesday, Morrisey said he would continue to defend the law.

West Virginia is one of 21 states that have enacted some type of restriction on transgender student participation in school sports.

In 2020, the Fourth Circuit ruled in favor of a Virginia transgender boy who challenged his school’s refusal to let him use the bathroom that matched his gender identity.

The U.S. Supreme Court declined to hear the appeal in that case as well.

In Tuesday’s ruling, one of the three judges, G. Steven Agee, dissented. He was nominated by President George W. Bush to the court in 2008.

Exit mobile version