BECKLEY — One of Gov Jim Justice's coal companies may not be able to repay $1.23 million in court-imposed sanctions, according to court documents filed in a 2013 federal court case against Justice Energy Company.
A status report was filed on Dec. 21 in the U.S. District Court for the Southern District of West Virginia at Beckley in which U.S. Attorney Michael B. Stuart said no payment had been made by the defendant to satisfy the civil contempt sanction imposed by the federal court.
"Counsel for the United States sent a letter and a request for financial information to counsel for Justice Energy Company, Inc., on November 28, 2018," the document obtained by The West Virginia Record states. "The request allowed Justice Energy Company, Inc., ten business days to furnish the requested financial information."
Justice, however, did not and has not furnished the requested financial information.
"Accordingly, the United States respectfully requests that the Court grant the United States leave to depose employees and representatives of Justice Energy Company, Inc., and to discover and compel the production of financial information so that the United States can proceed to find and locate potential financial assets to satisfy the civil contempt sanction imposed by the Court in this civil action."
In the Nov. 28 letter, Stuart wrote that based on his conversations with Justice's attorneys, it was suggested that the coal company "may not have the financial resources" to pay the sanctions imposed by the court.
At the status hearing, Justice's attorneys noted they were examining available funds and assets, according to the court documents.
"In the interim, Defendant has provided the U.S. Attorney’s Office Consolidated Balance Sheets and Consolidated Income Statements for Justice Energy Company, Inc. for the two most recent years (2016 and 2017)," the court document states. "When the 2018 Consolidated Balance Sheet and Consolidated Income Statement are available, Defendant will provide those to the U.S. Attorney as well."
The 2013 lawsuit involves James River Equipment-Virginia LLC and Justice Energy. James River claims Justice began purchasing parts, equipment and services in April 2013 and failed to pay back what it owed for them.
James River claimed Justice breached its contract and was unjustly enriched at James River's expense.
U.S. District Court for the Southern District of West Virginia Case number: 5:13-cv-28160