LONDON, Ky. — A federal judge in Kentucky ordered companies owned by Gov. Jim Justice's family to pay more than $1 million in fees in a lawsuit alleging they defaulted on a mining contract.
U.S. District Judge Gregory F. Van Tatenhove ordered James C. Justice Companies Inc. and Kentucky Fuel Corporation to pay a total of $1,041,496.57 in fees and expenses, including $103,423.13 for fees to Scott Webster's firm, $838,316.03 to John Lucas' firm, $59,098 to the plaintiffs, and $40,659.41 to Culver Schmid's firm.
The judge also ordered the defendants to pay $10,000 each to the plaintiffs within the next 30 days, the order states.
Van Tatenhove found that the attorneys met the standard to be awarded attorney's fees.
"That fact alone would explain the large award of attorneys’ fees," Van Tatenhove wrote in the April 24 order. "Matters are complicated by Defendants’ litigation conduct, which has at various times been described as 'contumacious', 'egregious' and 'uncooperative.' In light of the circumstances of this case, the attorneys’ fees requested by Plaintiffs are reasonable."
Back in September, Van Tatenhoe ordered the companies to pay New London Tobacco Market and Fivemile Energy $35 million—$17 million of which was punitive damages. He wrote that he was overruling all of the parties' objections and adopting Federal Magistrate Judge Hanly Ingram's recommendations with slight modification.
In the 2012 case, both parties filed objections to Ingram's report and recommendation.
New London Tobacco Market (NLTM) and Fivemile Energy filed the lawsuit against Kentucky Fuel Corporation and James. C. Justice Companies. Inc. It is related to the 2017 case filed by NLTM and Fivemile against Justice alleging violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The 2012 case alleges that the defendants failed and refused to pay rents due under the leases of a property as required.
U.S. District Court for the Eastern District of Kentucky case number: 6:12-cv-00091