Delayed Land Auction at West Virginia Gov. Jim Justice’s Resort: A Legal Battle Over $300 Million in Defaulted Business Loans

West Virginia Governor Jim Justice, a businessman turned politician, has been making headlines recently due to a legal dispute between his family’s companies and Carter Bank & Trust of Martinsville, Virginia. The dispute centers around over $300 million in defaulted business loans and a planned land auction at the Greenbrier Sporting Club, a private equity club and residential community owned by Justice.

The auction, originally scheduled for March 5, 2024, was intended to recover the substantial debt owed by the Justice family’s companies to Carter Bank. However, the bank announced on February 19, 2024, that it would delay the auction, citing the potential impact on the Greenbrier Sporting Club and the Greenbrier Resort, the county’s largest employer.

In a filing with the Greenbrier County Circuit Court, Carter Bank stated that it understood homeowners within the Greenbrier Sporting Club were also interested in the matter and might take action. The bank’s legal notice, published in the Charleston Gazette-Mail on February 6, 2024, announced the March 5 auction in Lewisburg involving land at the Greenbrier Sporting Club.

The sporting club, which opened in 2000, is a significant employer in the region, with thousands of jobs at stake. The club’s February 7 circuit court complaint argued that the auction would jeopardize these jobs and severely damage both the club and the Greenbrier Resort, which has hosted U.S. presidents and royalty. The complaint also sought a jury trial to address claims by the Justice family against Carter Bank.

The Justice companies attempted to transfer their banking business from Carter Bank to other lenders on at least four occasions between 2021 and 2023. However, Carter Bank allegedly blocked or sabotaged these transfer efforts. A federal lawsuit filed by the Justice companies against the bank in November 2023 is still pending.

Justice, who owns dozens of companies, has been the subject of numerous court claims for unpaid fines, including for unsafe working conditions at his coal mines. The governor is currently seeking the U.S. Senate seat being vacated by retiring Democrat Joe Manchin.

The Greenbrier Sporting Club is a private equity club and residential community located in White Sulphur Springs, West Virginia. Justice purchased the resort out of bankruptcy in 2009 and began serving his first term as governor in 2017. The sporting club’s complaint argued that the auction would damage the club’s reputation and potentially result in a loss of membership.

The sporting club’s complaint also stated that the auction would negatively impact the Greenbrier Resort, which has hosted numerous high-profile guests, including U.S. presidents and royalty. The resort is the county’s largest employer, and the potential loss of jobs and revenue could have significant economic consequences for the region.

The Justice family’s companies owe over $300 million in principal debt, plus interest and fees, to Carter Bank. The bank has stated that it will “aggressively” pursue this debt. The delay of the land auction is an attempt by the bank to recover the substantial debt owed to it.

The Greenbrier Sporting Club’s complaint against Carter Bank also alleges that the bank sabotaged the transfer of the Justice companies’ banking business to other lenders. The complaint states that the bank blocked or sabotaged these transfer efforts on at least four occasions between 2021 and 2023.

The Justice companies’ federal lawsuit against Carter Bank, filed in November 2023, is still pending. The lawsuit alleges that Carter Bank engaged in unfair and deceptive trade practices, breached its contractual obligations, and violated West Virginia consumer protection laws.

Justice, a Republican, is currently running for the U.S. Senate seat being vacated by retiring Democrat Joe Manchin. The delay of the land auction could potentially impact his campaign, as the issue has garnered significant media attention.

The legal dispute between Carter Bank and the Justice family’s companies is a complex issue with significant economic and political implications. The delay of the land auction is an attempt by Carter Bank to recover the substantial debt owed to it, while the Greenbrier Sporting Club and the Greenbrier Resort argue that the auction would have severe consequences for the region’s economy and employment.

The outcome of this legal battle could have far-reaching consequences for both the parties involved and the wider community. As the case progresses, it will be important to monitor developments closely and assess their potential impact on the region and the political landscape.

In conclusion, the legal dispute between Carter Bank and the Justice family’s companies over the delayed land auction at West Virginia Gov. Jim Justice’s resort is a complex issue with significant economic and political implications. The delay of the auction is an attempt by Carter Bank to recover the substantial debt owed to it, while the Greenbrier Sporting Club and the Greenbrier Resort argue that the auction would have severe consequences for the region’s economy and employment. The outcome of this legal battle could have far-reaching consequences for both the parties involved and the wider community. As the case progresses, it will be important to monitor developments closely and assess their potential impact on the region and the political landscape.