WELCH – A McDowell County jury has ruled in favor the owner of a coal company after a contractor had accused him of not paying nearly $1 million for services.
The six-member jury listened to evidence last week and convened for about 20 minutes before rendering its verdict in favor of Geoff Coady and Montito Natural Resources after Phillips Management Firm and James Phillips sued them for allegedly not paying about $997,000 for services rendered.
“Despite the ‘evidence plaintiffs’ counsel argues in his Motion to Set Aside or Vacate the judgment this court entered on the Jury’s Defense Verdict, the jury determined the credibility of the witnesses and the weight to be given to any and all evidence,” the July 26 final order from Circuit Judge Edward Kornish states. “The jury determined the plaintiff (Phillips) was not credible, defendant Montito’s evidence was credible and believable, plaintiff’s ‘purported’ ‘contract’ was not a contract, and plaintiff failed to carry his burden of persuasion.”
The order also notes the plaintiffs never even served Coady, who resides in Australia.
Coady said Montito entered into an agreement with Stephen Moscicki on February 7. But he says Moscicki didn’t perform to his satisfaction.
“It was officially terminated on March 23,” Coady told The West Virginia Record. “And he sign a form removing me and transferring ownership over to him on May 11. But I didn’t authorize that.
“Phillips knew I was going to terminate him, too. So he filed the lawsuit. But, let me be clear. No contract was signed. He claimed we were in the office together and signed a contract. I never was in an office with him. He never was even a full-time employee.
“He got paid what he was due. End of story.”
The alleged form filed with the Secretary of State’s office also listed Phillips as co-director of Montito. When that form was delivered to the West Virginia Secretary of State’s office, officials became suspicious of the document’s accuracy and legality.
“The resultant investigation demonstrated doubt that it was lawfully authorized, and the AAO filing was reversed with internal case file instructions to have all future changes for Montito Corporation approved by me personally,” SOS Deputy General Counsel Chris Alder wrote in a July 20 letter used as evidence in the trial.
An attorney that has done work for Coady and Montito also submitted a letter for the trial about Moscicki’s attempted transfer of ownership.
“I can confirm that, to my knowledge, Stephen Moscicki had not at any time acquired any ownership interest in the company prior to filings made on his behalf,” E. Forrest Jones Jr. of Jones & Associates in Charleston wrote in his July 20 letter. “In fact, to this day, (Moscicki) has not acquired any ownership interest in the company.”
According to Phillips’ original complaint, he said he and his company were owed the money and had been promised payment for months but recently stopped all communications concerning payment.
The plaintiffs accused 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.
Phillips was represented by D. Adrian Hoosier II of the Hoosier Law Firm in Charleston. Coady and Montito were represented by Ward Morgan of Bluefield.
McDowell Circuit Court case number 23-C-14
