A coal company owned by Gov. Jim Justice, R-WV, was recently found in contempt after it failed to follow a court order to pay a Charleston-based insurance company to maintain collateral for financial obligations.
U.S. District Judge Elizabeth Dillon found Justice's Southern Coal Corp. in civil contempt Monday after it failed to comply with a September order that ordered the company to pay $503,985 to BrickStreet Mutual Insurance Co. to maintain collateral financial obligations, along with attorney fees.
In addition, Judge Dillon granted the insurance company's request to fine Southern Coal Corp. $2,500 per day until it complies with the order, as first reported by the Charleston Gazette-Mail. Southern Coal Corp. has seven days to comply before the daily fine begins.
Judge Dillon's recent ruling effectively dismisses Southern Coal's previous argument that it was unable to comply with the order for payment as it was no longer actively mining coal and that it no longer had income.
Justice's Other Lawsuits
In addition to the lawsuit against Southern Coal Corp., the Justice family has been named in multiple other lawsuits regarding business dealings. Earlier this month, the Virginia-based Carter Bank & Trust took out a legal notice that said an auction involving Justice's Greenbrier Sporting Club is scheduled for March 5.
The auction is part of the bank's attempt to recover over $300 million on defaulted business loans by the Justice family.
"Banks have an obligation to their shareholders and the financial system to collect in full all amounts that are due and owing to them," the bank said in a filing last month with the U.S. Securities and Exchange Commission, as quoted by Fortune. "Carter Bank is no different from any other bank in this regard."
Justice bought the Greenbrier out of bankruptcy in 2009. The posh resort has hosted U.S. presidents and royalty, as well as PGA tournaments from 2010 until 2019.
Justice has also been the subject of numerous other court claims accusing him of being late in paying millions of dollars he owes in fines, such as for unsafe working conditions at his coal mines.
