Coal companies sued for allegedly not paying bills

BECKLEY - Two companies that manufacture and service machine parts are suing multiple businesses for allegedly not paying outstanding bills.

Phillips Machine Service Inc. and its subsidiary The Combs Group Inc. filed a lawsuit Oct. 8 in the Circuit Court of Raleigh County against Southern Coal Corp., Kentucky Fuel Corp., A&G Coal Corp., Virginia Fuel Corp., Sequoia Energy LLC, Justice Low Seam Mining Inc. and Black River Coal LLC, citing breach of contract.

According to the complaint, the defendants are owned, managed and operated by James C. Justice II and James C. Justice III. The complaint states defendants are active in the coal industry in West Virginia and routinely contracted with the plaintiffs for the manufacture and servicing of machine parts used in the coal industry.

In fall 2012, the defendants stopped paying bills owed to the plaintiffs and the plaintiffs made repeated attempts to collect the outstanding debt, according to the complaint. The plaintiffs contend the defendants refusal to pay the debts results in a breach of contract.

According to the complaint, the following amounts are outstanding:

-Southern Coal Corp. owes Phillips $274,841;

-Kentucky Fuel Corp. owes The Combs Group $85,823.60;

-A&G Coal Corp. owes The Combs Group $130,144.88;

-Virginia Fuel Corp. owes The Combs Group $168,889.42;

-Sequoia Energy LLC owes The Combs Group $346,429.65;

-Justice Low Seam Mining Inc. owes Phillips $3,866.50;

-Black River Coal LLC owes Phillips $1,218.56; and

-Black River Coal LLC owes The Combs Group $147,202.81.

The plaintiffs are seeking the entire amount of the outstanding debts, including interest. The plaintiffs are being represented in the case by Marc R. Weintraub and Athanasios Basdekis of Bailey & Glasser LLP in Charleston.

Circuit Court of Raleigh County Case No. 13-C-818