WELCH – A McDowell County business seeks almost $1 million for unpaid services as well as a preliminary injunction to keep another company from transferring three MSHA permits.
Phillips Management Firm and James Phillips filed their complaint in McDowell Circuit Court against Montito Resources Corporation and Geoff Coady. The plaintiffs also seek monetary damages and to enjoin the transfer of any real or personal property from the defendants to any other party.
According to the complaint, Phillips and his company are owed more than $990,000 by the defendants for contracted services. They say the defendants have promised payment for months but recently stopped all communications concerning payment.
Hoosier
“Montito and Coady do, however, continue to contact plaintiffs to ask for work to be done, and recently asked plaintiff to commit fraudulent acts; namely, falsify documents to the Department of Environmental Protection,” the complaint states, also alleging Coady, who is Australian, uses the address of another coal operator in Summersville.
The plaintiffs say the contract between the parties promised payment of $25,000 per month for services provided by the plaintiffs plus interest. It also alleges the defendants provided a $30,000 to the plaintiffs but then told them to use the money to pay bills of the defendants.
The complaint makes numerous other allegations against the defendants and other businesses, such as the defendants selling rights to a third-party company from the United Kingdom financially supported by another company that isn’t registered in the state. It also claims another party wanted the plaintiffs to finance equipment in the name of Panther Mining, which it says hasn’t existed in 63 years in West Virginia.
“It is impossible for plaintiff to name this unknown party or to give the unknown party notice of nearly $1,000,000.00 due under the agreement between parties herein,” the complaint states. “The list of excuses provided to plaintiffs for payment is lengthy. The representations have been fraudulent at best. …
“Defendants have failed to communicate, failed to give plaintiffs a timeframe for payment and continue to expect plaintiffs to provide services. Defendants continue to promise payment but claim plaintiffs cannot be paid until the deal closes. Yet there is no ‘deal close’ provision in the contract.”
The plaintiffs accuse the defendants of breach of contract, breach of the covenant of good faith and fair dealing, fraud, constructive fraud, intentional misrepresentation, negligent misrepresentation, unjust enrichment, unconscionability. Duress, undue influence and economic loss.
They seek compensatory damages for monetary loss, loss of income, loss of employment opportunities, loss of opportunities for career advancement, significant debt, emotional pain, inconvenience, mental anguish, interference with family relationships, personal embarrassment, humiliation, loss of enjoyment of life and loss of professional reputation. They also seek punitive damages.
The plaintiffs are being represented by D. Adrian Hoosier II of the Hoosier Law Firm in Charleston. The case has been assigned to Circuit Judge Edward Kornish.
McDowell Circuit Court case number 23-C-14