Consol claims Bluestone Coal hasn't paid rent in months

BLUEFIELD -- Consolidation Coal Company has filed a federal suit against Bluestone Coal Company, alleging Bluestone has not paid its rent since October.

Consolidation and Bluestone entered into a lease on March 18, 2005, in which Consolidation leased Bluestone a tract of land in Big Creek District in McDowell County, according to the complaint filed in United States District Court.

In return, Bluestone was supposed to pay $8,333.33 by the first day of each calendar month, the suit states.

However, Bluestone did not pay its rental payments for November, Consolidation claims.

So, on Dec. 4, Consolidation allowed Bluestone 10 days to pay the money it owed, according to the complaint.

But by Dec. 16, Consolidation still had received no money and it sent a letter to Bluestone informing the company that if it failed to pay immediately, the lease would be terminated, the suit states.

After still receiving no money, Consolidation terminated the lease on Dec. 19, it claims.

Despite the notice of termination of the lease and instructions to leave the property, Bluestone still remains on the property, according to the complaint.

"Defendant's continued possession of CONSOL'S real property is unlawful and actionable under West Virginia law," the suit states.

Because Bluestone has refused to leave the land, Consolidation has been damaged by $75,000, which is equal to the property value of the land, it claims.

In the two-count suit, Consolidation is seeking the court order Bluestone ejected from the property.

It is also seeking rental amounts for Bluestone's hold-over tenancy, unspecified punitive damages, plus fees and other relief the court deems just.

Steven P. McGowan and Lindsay Agee of Steptoe and Johnson in Charleston will be representing it.

U.S. District Court case number: 1:09-0017