On March 11, U.S. District Judge Irene Berger issued a memorandum opinion and order granting summary judgment to Thomas K. Lampert of Pennsylvania. He is trustee for the Thomas K. Lampert Irrevocable Trust.
Last year, Lampert sued Tams Management Inc. and Southern Coal Corporation in federal court. It says the companies – owned by Justice – didn’t pay $2 million from a March 2013 agreemetn for equity and membership interests in Newgate Development of Beckley LLC.
Lampbert says the trust never received the $4 per ton for the first 500,000 tons of coal mined and sold. He also says the Justice companies had a clear contractual obligation to pay the $2 million royalty, which he claims they refused to do.
In her order, Berger agrees with the plaintiff’s Motion for Summary Judgment. Lampert sought the $2 million as well as attorney fees and other costs.
“We are very pleased that the court, by granting our motion for summary judgment, is enforcing the clear and plain language of the contract,” said Isaac Forman, an attorney at Bailey & Glasser who represented Lampert.
This isn’t the first time Justice companies have been accused of not paying debts.
Last month, Berger held Justice Energy in contempt for not paying a nearly $150,000 debt. Berger fined the company $30,000 per day, beginning Jan. 5, until the company was in full compliance and had paid off the two-year-old debt. When the company paid the debt on Feb. 15, the total contempt fine was $1.23 million.
In that case, Berger wrote that the defendant has indisputably violated or failed to comply with several court orders. Justice Energy first was sued by James River Equipment in November 2013 and failed to appear for four court appearances. In another court appearance, company vice president Vladislav Andreev showed up, but he failed to bring any financial documents.
Berger wrote that the company had indisputably violated or failed to comply with several court orders and is clearly in contempt.
James River requested the court also hold both Roman Semenov, listed as Justice Energy’s director, and additional Bluestone officers in contempt as well. Berger denied the request, writing that Justice Energy’s inactions did not rise to the level that any individual person should be held in contempt.
In October, Justice Energy agreed to a payment plan with James River that included six monthly payments of $30,000. The company made two payments, then missed the next one and has since not responded to the court or to James River’s attorney.
Justice, who also owns The Greenbrier resort, is running for governor as a Democrat against State Senate Minority Leader Jeff Kessler and former U.S. Attorney Booth Goodwin in the May primary.
"It's more of the same from Jim Justice and his empire of deceit,” West Virginia Republican Party Chairman Conrad Lucas said last month. “Justice doesn't pay bills, won't pay fines, ignores Federal courts and can't stop breaking environmental laws. Every day we find out something new that shows Jim Justice is wrong for West Virginia."
Lucas said Justice's record is long and it's filled with bad deals and unpaid invoices to small businesses.
“West Virginia deserves better,” Lucas said. “The answer to 85 years of economic failure is not electing someone who ignores the law. The answer to our problems starts with electing Bill Cole, an honest, strong conservative as our next Governor.”
Jim Justice 4 Himself, which is paid for by RGA Right Direction PAC, stated in a press release last month that the company and other companies owned by Justice have failed to pay debts.
“Despite being West Virginia's only billionaire, Justice-owned companies have routinely failed to pay its debts, instead sticking small businesses and taxpayers with the bills,” the press release stated. “West Virginia needs a governor they can trust to stand up for them and against Washington's overreach, but Justice has consistently demonstrated he only looks out for himself.”