A coal company owned by West Virginia Governor Jim Justice has been found in contempt by a federal judge for failing to comply with an order to pay an insurance company to maintain collateral on a financial debt.
U.S. District Judge Elizabeth Dillon on Monday held Southern Coal Corporation in civil contempt and fined the insurance company $2,500 per day until it complies with the order, the Charleston Gazette-Mail reports. acknowledged.
Bank delays West Virginia land auction at Justice Resort
The judgment rejected Southern Coal’s argument that it could not comply with a five-month-old payment order because it was not actively mining coal and had no income.
West Virginia Governor Jim Justice during the State of the Union address on January 10, 2024 in Charleston, West Virginia. (AP Photo/Chris Jackson, File)
That September order says Southern Coal cannot meet its contractual obligations and must pay Charleston-based Brick Street Mutual Insurance Company $503,985, along with attorney’s fees, as security for its financial obligations. It is said that it will not happen. BrickStreet offers workers’ compensation insurance and employer’s liability insurance.
Southern Coal argued that recent court decisions prevented other companies in its jurisdiction from paying its debts, but the judge said in a contempt order that no evidence had been presented to support that claim. He said no.
According to the order, Southern Coal has seven days to comply before daily fines begin.
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The Justice family has been named in multiple lawsuits related to business dealings. A Virginia bank announced this month that it was postponing plans to auction off land at Justice’s luxury resort, the Greenbrier Sports Club, in a bid to recover more than $300 million in defaulted business loans by the Republican governor’s family. .
