BECKLEY – U.S. District Judge Irene C. Berger has ordered The Greenbrier to pay more than $1 million to two rental companies who sued the hotel for breach of contract since December.
Berger granted a joint motion for consent judgment in one of the cases on March 12 and the other on March 14. The total between the two lawsuits is $1,488,258.80 plus post-judgment interest through the date that the judgments are satisfied.
In one of the cases, Berger ordered Greenbrier Hotel Corporation and Old White Charities to pay the amount of $753,895.31, along with $6,855 in legal fees, $800 in court costs, pre-judgment interest in the amount of $59,355.99 and post-judgment interest at 5 percent per annum from the date that the judgment is fully satisfied.
In the other case, Berger ordered Greenbrier Hotel Corporation, along with Old White Charities and 20 unnamed insurance companies to pay $622,980.90, as well as pre-judgment interest in the amount of $40,105.10; pre-judgment interest at 5 percent per annum in the amount of $4,266.50; and post-judgment interest at 5 percent per annum from the date of the judgment through the date that the judgment is fully satisfied.
From July 4, 2016, through July 10, 2016, Select Event Group Inc. provided special event-related services and equipment for Old White Charities. The defendant is in default of its obligations under the contract.
In the other case, Special Event Service and Rental alleges that from 2011 to 2016, The Greenbrier rented on an annual basis various equipment from SESR.
SESR claims on June 1, 2016, it proposed to lease to The Greenbrier the equipment for use at the 2016 Greenbrier Classic to be held at the Greenbrier Resort in White Sulphur Springs.
The proposal provided that the leasing of equipment The Greenbrier from SESR was to be on the terms and conditions set forth in the rental agreement, according to the suit.
SESR claims the defendants accepted the proposal and agreed to rent the equipment for $128,475.
On June 23, 2016, while SESR’s equipment was being leased by the defendants, the equipment was damaged and/or destroyed, resulting in a loss to SESR, according to the suit.
SESR claims the loss sustained as a result of the damage and/or destruction of SESR’s equipment was $622,980.90.
On Sept. 20, 2016, SESR submitted a notice of claim to The Greenbrier in the amount of $622,980.90 and requested that The Greenbrier submit SESR’s claim to The Greenbrier’s insurers, according to the suit.
In December 2016, SESR was informed that the insurers had accepted and agreed to pay the losses in the amount of $622,980.90, according to the suit. In January, when payment was not received, SESR demanded the insurers make immediate payment to SESR for the losses.
SESR claims on May 18, it notified The Greenbrier that it had not been paid for the losses and demanded payment.
On Aug. 31, The Greenbrier made an offer to settle the claim made by SESR for the sum of $618,980.90, according to the suit.
SESR claims it accepted the offer on Sept. 1, and, thereafter, The Greenbrier refused and/or failed to pay SESR the sum which it had agreed to pay pursuant to the settlement agreement.
On Sept. 14, The Greenbrier submitted a claim for insurance benefits to the insurance companies, seeking to recover insurance benefits for losses sustained and sought to recover $622,980.90, according to the suit.
SESR claims the defendants breached its contract and were unjustly enriched at SESR’s expense.
Special Event Group was represented by William M. Rudow of Rudow Law Group; and James R. Sheatsley of Gorman Sheatsley & Co.
SESR was represented by Mark A. Colantonio and Robert J. Fitzsimmons of Fitzsimmons Law Firm.
The defendants were represented by J. Victor Flanagan and Jared C. Underwood of Pullin Fowler Flanagan Brown & Poe.
U.S. District Court for the Southern District of West Virginia case number: 5:17-cv-04466, 5:18-cv-00006