Xcoal and Jim Justice's Affiliated Companies File Lawsuits Against Each Other in Separate Federal Courts
Apr 18 14
Xcoal Energy & Resources and Jim Justice's affiliated companies filed lawsuits against each other in separate federal courts, apparently stemming from a settlement between the two sides in 2013. Xcoal's complaint and exhibits against Justice and his companies are sealed in U.S. District Court for the District of Delaware. Xcoal said in an April 14 court filing that its complaint filed April 11 contains "confidential and proprietary information." A judge granted the motion to seal. In a heavily redacted complaint, Justice filed suit against Xcoal and CEO Ernie Thrasher in U.S. District Court for the Western District of Virginia, also on April 11, alleging that Xcoal did not live up to the terms of a settlement between the two companies, referred to as a mutual release in the court filing. In August 2013, Justice's Southern Coal Sales Corp., or SCS, and affiliates settled a contentious breach-of-contract and fraud dispute with Xcoal and Thrasher in U.S. District Court for the Western District of Virginia. SCS, a unit of Southern Coal Corp., filed suit in June 2012, claiming Xcoal failed to pay $120.7 million and take delivery of coal under contracts. SCS said the alleged contract breach impacted a potential sale of mining operations, forcing the company to shut the mines. Xcoal filed a countersuit in September 2012 claiming that SCS, not Xcoal, reneged on several coal purchase agreements. The complaint also alleges that Xcoal falsely claimed that it had existing contracts with Norfolk Southern Corp. to move coal. In addition to Southern Coal Corp. and SCS, the Justice affiliates involved in the lawsuit against Xcoal are James C. Justice Companies Inc., Virginia Fuel Corp., Kentucky Fuel Corp., Tams Management Inc., A & G Coal Corp., Black River Coal LLC, Justice Low Seam Mining Inc. and Sequoia Energy LLC.