W.Va. Governor's Companies Ordered To Pay $35M In Lawsuit

A federal judge has ordered companies owned by West Virginia Gov. Jim Justice to pay $35 million over a lawsuit accusing them of violating a mining contract.

U.S. District Judge Gregory F. Van Tatenhove in Kentucky on Monday ordered the Kentucky Fuel Corp. and the James C. Justice Cos. to pay the sum.

The lawsuit was filed by the New London Tobacco Market and Five Mile Energy. They are accusing the Justice companies of failing to pay mining royalty payments and retainer fees.

The ruling includes roughly $17 million in damages, $17 million for royalties and $1 million in retainer fees.

A lawyer for Justice’s companies says they plan to appeal the judge’s ruling.

Justice Agrees To Pay Family Firm’s $1.23M Fines

West Virginia Gov. Jim Justice has agreed to pay a $1.23 million court-ordered sanction against one of his family’s companies.

Justice’s lawyers and federal prosecutors said in a joint court filing Thursday that they’ve reached a deal for Justice Energy Co. to clear the fine in three payments of $410,000. The sanction stems from an unpaid 2016 fine ordered over a contract breach.

In a statement, attorney Mike Carey said the debt was incurred when a Russian company owned Justice Energy Co. The debt ballooned because the Russian company’s lawyer ignored orders to appear in court, Carey said.

One of Justice’s other companies, Bluestone Resources, will pay the sanction, according to the filing.

U.S. Attorney Mike Stuart told a judge Wednesday that Justice Energy is a moneyless shell company that exists to shield Justice’s family from liability. He asked that the governor and his son Jay Justice not be allowed to hide behind the company and be ordered to pay the debt.

“The Justices have the ultimate decision-making authority over all of the activities of these entities, and their decisions led to the imposition of the civil contempt sanction imposed by the Court in this case,” he said.

The agreement must be approved by a federal judge before it takes effect.

Justice has been reported to be the richest man in West Virginia, with a net worth estimated at $1.5 billion by Forbes magazine. In his most recent financial disclosure statement, Justice lists more than 100 business interests, including coal and timber companies. He has said he wants to put his assets in a blind trust but hasn’t done so.

Last month, the U.S. government sued nearly two dozen of Justice’s coal businesses to get them to pay about $4.8 million in unpaid mine safety fines that date back to 2014. His lawyer said he was upset the case was filed because the companies have been in negotiations to resolve the fines.

The filings also come as three federal subpoenas sent to Justice’s administration have recently become public.

The first subpoena was sent to the state commerce department for documents about a posh resort owned by the governor. Two other subpoenas sought records from the state tax and revenue departments about the governor’s businesses.

Justice has said he is cooperating with the investigation, previously saying “anything you’re going to find around me is going to be goodness and it’s going to be the right thing.”

Judge: Justice Family Coal Company Must Turn Over Financial Info

A federal judge today ruled that a coal company controlled by Gov. Jim Justice’s family must turn over financial information and make its employees available for questioning.

U.S. District Judge Irene Berger granted a motion submitted last month by U.S. Attorney Mike Stuart seeking additional infromation and the ability to depose Justice Energy Co. employees.

Federal prosecutors are seeking more information on the ability of the coal company to pay a $1.23 million court fine. They are asking for a list of all real estate, bank accounts, vehicles and other financial information.

Justice Energy, a company now run by Gov. Justice’s children James C. Justice III and Jillean Justice, was slapped with the fine after repeatedly failing to pay Virginia-based James River Equipment $150,000 for mining equipment, service and parts. The company sued in 2013 and won.

Two years after being ordered to pay the debt, and after repeatedly failing to show up for court hearings, Bergerheld Justice Energy in contempt of court, ordering the company to pay $30,000 per day.

In September, Justice Energylost an appeal of the civil contempt fines.

According to the request granted Wednesday, Stuart said Justice Energy may not be able to pay the fine, based on conversations he had with the company’s attorneys. But he said he needs more information.

The judge’s order gives Justice Energy until Jan. 25 to provide all requested financial information and requires the firm to make employees available for depositions by mid-Feburary.

 

An attorney for the Justice family companies did not immediately respond to a request for comment.

 

A review of court documents last year by the Ohio Valley ReSource found at least five cases in which judges ruled that Justice family companies failed to pay suppliers for goods or services. When compelled by courts to pay, the companies either refused or failed to meet agreed upon payments.

 

In all five cases the courts authorized U.S. marshals to seize assets from the Justice family companies’ bank accounts to recover the debts. However, in some cases, officials discovered the bank accounts were empty or closed.

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