Coal companies owned by the family of Gov. Jim Justice still owe more than $525,000 to the federal government for mine safety fines.
In documents filed September 26 in federal court, the Justice companies owe $529,041 after a $50,000 payment was made September 23. The payment was made after an August request to hold the companies in contempt for failing to pay.
In a 2020 settlement agreement on the matter, the Justice companies agreed to pay $5.13 million in total fines. The companies were supposed to make monthly payments of just more than $100,000 until the debt was satisfied.
But “defendants have consistently made their monthly payments late,” according to a spring 2023 filing that said payments were missed entirely for January, February, March, April and May of last year. At the time, attorneys for Justice’s companies told officials they “did not immediately have the ability” to make payment but could borrow from another business in August 2023 to get up to date on the payment plan.
The debt was related to unpaid Mine Safety and Health Administration civil penalties going back as far as 2014.
But federal officials say the 23 Justice companies have not followed the adjusted payment plan and have failed to explain their issues or try to work out another arrangement. This summer, feds said they would take the companies to court again unless the debt was paid. In court filings, federal prosecutors said the companies were making an “attempt to escape” financial obligations.
“Defendants admit they have not complied with the court’s two orders,” the feds say in their September 26 reply in support of its August motion for contempt. “They argue, however, they should not be held accountable for their violations because paying their debt is a ‘near impossibility at this time.’
“Defendants appear to ask the court to take them at their word, as they do not provide any evidence of their purported financial difficulties, nor have they filed for bankruptcy protection.”
In their August 27 reply to the motion for civil contempt, the Justice companies say their inability to pay is “well known to the government and has existed for some time.” They say contempt is “simply a step too far.”
“Defendants’ absolute inability to comply with the court’s order offers a complete defense,” the companies state in their memorandum opposing the contempt order, which also included a copy of a news story about the Justice family and Carter Bank reaching a $300 million agreement on loans. “The evidence will show that defendants are unable to comply with the judgment order. Second, defendants’ inability to secure the (resources) was not self-inducted and, if it was, it existed long before the judgment in this case. Third, defendants have made and continue to make a good faith effort to comply with this court’s order.”
The government says all of the Justice companies’ arguments in their memorandum fail.
“Defendants willingly and knowingly entered into the payment plan and consent judgment in this case, representing to the government and the court that it would comply with the payment plan in the consent judgment,” last week’s reply states. “However, they now claim that they faced financial difficulties at the time of the consent judgment that preclude them from being able to pay.
“If defendants knew they could not comply with the consent judgment at the time of execution, they should have said so.”
Regarding the August 2023 idea of borrowing money from another entity to satisfy the debt, the government says the Justice companies again failed to comply with the adjusted payment plan.
“Defendants have not provided any explanation for their noncompliance,” the government reply states. “The government continuously sent reminders to defendants and requests for payment. Most of these reminders and requests went unanswered.
“Instead of notifying the government about their alleged inability to comply with the consent judgment, defendants have kept their proverbial heads in the sand. Even with the government notified defendants in July 2024 that the government would have no choice but to seek action with the court unless payment in full was made, defendants offered no explanation or response. …
“Defendants here have willfully failed to comply with the consent judgment. Defendants’ assertions to the contrary are belied by the facts and history of this case.”
The government also says the Justice companies’ request for discovery is an unnecessary delay tactic.
“Defendants bear that burden of proving their inability to pay and can present any such evidence to the court at such a hearing,” the government states. “To the extend defendants assert they need discovery from the government in advance of a hearing for defendants to show cause to why they failed to comply with several court orders, any such discovery is improper.”
Prior to taking office in 2017, Justice said he would have his adult children run the family businesses. Jay Justice is president of the Justice mining and agriculture businesses, and Jillean Justice Long is president of The Greenbrier resort.
Financial difficulties surrounding the Justice family and its companies are numerous. In a July financial disclosure report for his U.S. Senate candidacy, Justice said he has liabilities from $87.5 million to $158.1 million.
U.S. District Court for the Western District of Virginia case number 7:19-cv-354
