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WEST VIRGINIA RECORD

Thursday, April 25, 2024

Greenbrier lawsuit against insurance adjuster transferred to West Virginia

Federal Court
Jimjusticewv

BECKLEY —A lawsuit filed by The Greenbrier is being transferred to West Virginia federal court from Virginia.

The case, which was originally filed in U.S. District Court for the Eastern District of Virginia, was transferred Oct. 23 to U.S. District Court for the Southern District of West Virginia.

"Based upon the foregoing principles, the Court finds that the venue is improper in the Eastern District of Virginia, and therefore, the matter cannot proceed in this District," a memorandum order transferring the case stated. 

Greenbrier's complaint and supplemental filing "tend to show that Defendant is a resident of Maryland and make clear that the events giving rise to the claim occurred in White Sulphur Springs, " the order states. 

"White Sulphur Springs, located in the Southern District of West Virginia, would be a proper venue for this action," Senior U.S. District Judge Henry Hudson wrote.

Hudson wrote that in the interests of justice and convenience, the court transferred the matter to West Virginia.

"The matter is still being actively litigated as to the proper forum so we'll hold off on commenting until that process is finalized," Neil Kahn, Executive Vice President of Goodman-Gable-Gould/Adjusters International (GGG), said in a statement provided to The West Virginia Record.

Greenbrier Hotel Corporation, The Greenbrier Sporting Club, Greenbrier Sporting Club Development Company, Old White Charities and Oakhurst Club filed the lawsuit against GGG in August, alleging their properties were devastated by the June 23, 2016, flood – causing both physical damages to the properties as well as economic damage from the loss of hotel guest revenue and revenue associated with the cancellation of the 2016 golf tournament, according to the complaint.

The Greenbrier claimed GGG failed to meet its obligations under its services agreement and, because of that, terminated GGG's agreement in 2017. 

The lawsuit alleged that GGG failed to properly calculate The Greenbrier's business interruption losses, and refused to correct and revise those calculations despite demands to do so.

The Greenbrier did not return requests for comment.

U.S. District Court for the Southern District of West Virginia Case number: 3:19-cv-00623

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