Equipment provider claims shareholder withheld payment to mine

By Carol Ostrow | Jul 22, 2015

WINFIELD—A Putnam County company is suing a Delaware-based mining operation doing business in West Virginia along with its owner, claiming fraud and breach of contract in its failure to pay funds owed in an undated dispute.

Stacy Equipment and Repairs Inc. filed a grievance against New Trinity Coal Inc. of Mingo County and Rakesh Kapur of New York, NY, the company’s major shareholder, in Putnam Circuit Court June 1, asserting breach of contract.

According to the filing, the parties entered into an agreement for goods and services to be provided by Stacy for New Trinity’s mining operations, including environmental remediation, excavation, site reclamation and other tasks required for the defendant to come into compliance with environmental law.

The suit states that the plaintiff performed all work as per the contract, additionally providing machinery, equipment and transportation. Court documents indicate that the defendant signed off on all invoices acknowledging that the work had been done, but that New Trinity failed to remit pay the plaintiff.

Documents filed indicate that Kapur not only allegedly induced New Trinity to withhold payment to the plaintiff, but also engaged in a fraudulent scheme to undercapitalize and siphon funds from the defendant, protecting himself and the business from liability by undermining the company’s solvency, and purportedly keeping the profits for himself.

Alleging unjust enrichment and intentional wrongdoing, the plaintiff seeks compensatory and punitive damages, compensation in the amount of $213,726.08, interest, attorneys’ fees, and costs.

The plaintiff is represented by James Fox of Fox Law Office in Hurricane. The case has been assigned to Judge Roger L. Perry.

Putnam Circuit Court case number 15-C-139

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