Greenthorn LLC allegedly in default on rental payments for property, continues to mine it

By Tia Benton | Oct 14, 2015

LOGAN – Two out-of-state companies mining in Logan County are being sued for alleged breach of contract due to failing to pay rental fees and royalties in accordance with a lease agreement.

W.W. McDonald Land Co., Wasbold Properties Inc., R.R. Smith III, the Frederick F. Stuart Residuary Trust, F. Scott Daniel, and Robert E. Daniel filed suit against Greenthorn LLC of London, Ky. and Kentucky Fuel Corp. of Roanoke, Va. in Logan Circuit Court on May 28.

According to the complaint, Greenthorn leased more than 470 acres from the plaintiffs for the purpose of mining the land for coal, performed by Kentucky Fuel. The suit avers that Greenthorn was obligated to pay rental fees in the amount of $50,000 per year due or paid by Aug. 1 of each year, along with an 8 percent tonnage royalties due by or paid on the 25th of each month. The plaintiffs claim the defendants failed to comply with the lease agreement, and while in default, have continued to mine on the leased property. Defendants are allegedly indebted in the sum of $237,997.38 total for defaulted payments.

Greenthorn is accused of breach of contract and the plaintiffs are seeking injunctive relief against both Greenthorn and Kentucky Fuel to cease mining on the acreage immediately.

The plaintiffs are represented by William M. Herliny and David A. Bosak of Spilman, Thomas & Battle, PLLC of Charleston. This case has been assigned to Judge Susan Perry.

Logan Circuit Court case number 15-C-152.

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