MARTINSVILLE, Virginia – A Virginia judge has issued an injunction against Gov. Jim Justice’s son to stop him from talking about a court case involving his family’s businesses and a Virginia-based bank.
Martinsville Circuit Judge G. Carter Greer signed the injunction May 1 against James C. “Jay” Justice III after he issued a press release last month following Carter Bank & Trust filing 11 cases of confessed judgments to collect on more than $300 million in debt from the Justice companies.
Those claims name Gov. Justice, his wife Cathy and Jay Justice, who operates the family’s coal operations. In addition to the $302 million in principal, the bank also seeks millions in interests and attorney fees. Confessions of judgment are signed agreements that can be presented to the court without notifying the debtor.
After the bank took the latest claims to court, Jay Justice issued a press release April 21 about the “significant lending dispute” with the bank, accusing it of “predatory behavior” and “obstructive conduct.”
That press release spurred the bank to seek the injunction against Jay Justice.
“The Justice companies have been unable to reach agreement with the bank despite having secured a refinancing opportunity that would pay Carter Bank $250 million in immediate cash and provide a path to completely pay off the companies’ Carter Bank loans within months,” Jay Justice said in the press release, adding that the bank has blocked efforts to repay the loans “to continue extracting interest payments from the Justices.”
He also said the bank’s new filing “is nothing more than an illegal attempt to stop us from working with other lenders. It is unimaginable that a bank would deny a customer the ability to pay off a loan.”
The confessed judgments filed by Carter Bank are for loans to James C. Justice Companies, Justice Family Group, Greenbrier Hotel Corp., Greenbrier Golf and Tennis Club, Greenbrier Sporting Club, Players Club LLC, Oakhurst Club, Greenbrier Medical Institute, Justice Low Seam Mining, Twin Fir Estates and Wilcox Industries. They came due April 15.
Carter filed the complaint and motion for preliminary injunction against Jay Justice on April 26 to prevent him “from disclosing further confidential information about the credit relationships and ongoing business negotiations between Carter Bank and certain entities owned and controlled by defendant and his family members.”
The bank says the information is protected under a confidentiality and nondisclosure agreement “specifically designed to prevent, among other things, the sort of inflammatory and prejudicial statements” Jay Justice made in the press release.
On April 27, Jim Justice announced plans to run for U.S. Senate for incumbent Democrat Joe Manchin’s seat. Justice will face off against Congressman Alex Mooney in the Republican primary.
Earlier this year, the governor said his company is looking into selling all or part of its coal assets to resolve debt issues with Credit Suisse. The governor also is having his wages garnished by an Elkins-based bank to finish paying an $850,000 judgment from a civil lawsuit. He has called that move political grandstanding and said his company will pay the debt.
City of Martinsville Circuit Court case number CL23000130-00