‘Contempt is simply a step too far’: Justice’s companies explain failure to pay fines

CHARLESTON, W.Va. (WOWK) — Two dozen mining companies owned by the family of West Virginia Governor Jim Justice are refuting the U.S. government’s motion to hold them in contempt, saying their failure to pay their civil fines on time was “not due to a willful violation of the Court’s order,” but because of an “inability to pay the current amounts due,” according to federal court documents. They also allege that the government had already been aware of these issues for some time.

The attorneys for the companies said that they could not pay the remaining fines before the due date because of financial issues.

The companies owed $5,130,125.47 in Mine Safety and Health Administration civil penalties, which were imposed in 2020, but failed to pay the remaining $579,041.53 in March 2024.

A $10,000 payment was made by the companies on July 12, 2024, with claims of further payments as they were financially able to do so, but due to their failure to pay the remaining fines on time, the U.S. government moved to enact a contempt penalty on the companies on Aug. 6, 2024.

The companies motioned on Tuesday in federal court to have the contempt claim dismissed, saying “contempt is simply a step too far” because of their lack of finances at the time the payments came due.

Some of the financial issues the companies claim prevented them from making the payment include Southern Coal being labeled insolvent, Kentucky Fuel Corporation having no assets and tax returns to demonstrate its losses as well as a downturn in the coal market.

Another of Governor Justice’s ventures, the Greenbrier Hotel Corporation, is currently being sued by the First Guaranty Bank for failure to repay loans. The lawsuit comes as the Greenbrier Resort is going up for auction due to issues with the payment of a different loan and as employees are at risk of losing their benefits .

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