CHARLESTON – A bank has filed a lawsuit against Gov. Jim Justice and one of his companies, saying three loans totaling more than $10 million were not fully paid.
MVB Bank Inc. says Bluestone Resources Inc. and Justice owe more than $3.5 million on three loans secured in 2018. MVB filed its complaint August 24 against Bluestone and Justice in Kanawha Circuit Court.
Justice and his companies have a long history of civil litigation regarding nonpayment of loans.
According to the complaint, the lawsuit was filed to enforce certain promissory notes and guaranty agreements related to one loan taken out May 23, 2018 in the amount of $2,751,752. It says Justice executed an unlimited personal guaranty.
As of August 23, the defendants have an outstanding balance of $1,805,462.50 with accrued interest of $45,981.14 and late charges of $376.14 for a total of $1,851,819.78. Interest accrues at a rate of $250.76 per day after August 23.
A similar second loan was taken out June 20, 2018, for $2,872,780, according to the complaint. As of August 23, it has an outstanding balance of $1,565,932.52 with interest of $51,912.42 for a total of $1,617,844.94. Interest accrues daily at a rate of $250.11 per day after August 23.
A similar third loan was taken out July 18, 2018, in the amount of $4,603,960. As of August 23, it had a balance due of $111,962.57 with interest of $6,707.86 and late charges of $62.66 for a total of $118,733.09. Interest accrues daily at a rate of $20.06 per day after August 23.
As of August 23, the total due for the three loans was $3,588,397.81
The promissory note for the loan gives MVB the ability to recover its costs and expenses of collection, including attorney fees. The complaint also says MVB has security interests in various items of equipment owned by Bluestone, and it says it can require Bluestone to deliver all of said equipment, including certificates and titles, to the bank or allow the bank access to Bluestone property to obtain the equipment.
MVB Bank seeks monetary judgment plus interests, court costs, attorney fees and other relief. It also seeks a court order granting right of possession of all qualifying equipment.
MVB Bank is being represented by James W. Lane Jr. and Eric M. Johnson of Flaherty Sensabaugh Bonasso in Charleston. The case has been assigned to Circuit Judge Joanna Tabit.
Kanawha Circuit Court case number 22-C-708