CLARKSBURG – Mountain Blue Hotel Group has filed its answer in the lawsuit against it by U.S. Bank National Association, denying allegations made against it.

Mountain Blue filed the answer on Aug. 28 in the U.S. District Court for the Northern District of West Virginia.

In its affirmative defenses, Mountain Blue asserts any and all affirmative defenses, including accord and satisfaction; arbitration and award; assumption of risk; contributory negligence; discharge in bankruptcy; duress; estoppel, failure of consideration; fraud; illegality; injury by fellow servant; laches; license; payment and relief; res judicata; statute of frauds; statute of limitations; and waiver or any other matter constituting an avoidance or affirmative defense and which pay become apparent after discovery in this matter is completed.

Mountain Blue states that the various documents and letters mentioned in the complaint speak for themselves.

The lawsuit was filed on Aug. 8. It alleges that U.S Bank loaned the group $15.4 million in 2013 that Mountain Blue has defaulted on the loan.

U.S. Bank claims that Mountain Blue didn’t pay Hilton as part of its franchise agreement and that it failed to pay hotel taxes to Monongalia County.

U.S. Bank is seeking immediate repayment of the money owed in the case in the amount of $14,559,226.84.

In its answer, Mountain Blue is requesting the court enter an order dismissing the complaint. It is being represented by Michael J. Del Giudice.

Earlier this week, Sen. Joe Manchin said his listing as an investor in the hotel was a mistake.

Manchin and Larry Puccio were listed as investors in Mountain Blue through their partnership in AA Property LLC.

Steve Ruby, an attorney with Bailey Glasser and a former assistant U.S. attorney, told Metro News that the statement that AA is a member of Mountain Blue was a mistake.

“We’ve communicated that to the lender’s counsel,” Ruby told Metro News. “We’re working on getting that corrected, and I’m hopeful that correction will be made soon.”

The court will conduct an evidentiary hearing on Oct. 5. It will be held before District Judge Irene M. Keeley.

Exhibits and witnesses for the hearing have to be filed by Sept. 28.

U.S. District Court for the Northern District of West Virginia case number: 1:17-cv-00138

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