November 26, 2024 - One of WV Gov. Jim Justice’s out-of-state coal companies has sued a coal producer with a deep West Virginia footprint.

The Justice family-controlled Justice Coal of Alabama LLC has filed a federal lawsuit against metallurgical coal producer Ramaco Resources Inc., and two of its affiliates, alleging that they are responsible for illegally transporting a preparation plant from Alabama to Wyoming County.

Justice Coal of Alabama’s lawsuit contends Ramaco and its affiliates purported to buy the Glade Preparation Plant in Jackson County, Alabama, from EMCOAL Inc., a Tennessee-based metallurgical coal producer. The companies knew, or should have known, that EMCOAL had no title to the prep plant or ability to legally sell it before unlawfully having it dismantled and sent to Wyoming County property they control, according to the lawsuit.

Justice Coal says it reached an October 2023 agreement with EMCOAL under which it would sell the prep plant and other assets subject to conditions that included EMCOAL getting approval from the relevant governmental regulatory agencies for transferring its permits to EMCOAL.

A Nov. 8, 2023, amendment to the agreement barred EMCOAL from trying to sell the prep plant without Justice Coal’s written consent, according to the complaint.

Although amendment provided that Justice Coal would transfer Alabama assets that included the prep plant if Tennessee regulators issued a final refusal to transfer the Tennessee permits, EMCOAL ultimately failed to obtain the necessary regulatory approval to transfer permits in both Tennessee and Alabama, according to the lawsuit.

But EMCOAL “simply stole” the prep plant anyway, the Nov. 15 lawsuit contends, adding that one or more of the Ramaco defendants have kept operating the prep plant after it was moved to Wyoming County.

Justice company wants prep plant back

Justice Coal has asked the U.S. District Court for the Southern District of West Virginia to approve:

- Return of the prep plant

- Damages for lost prep plant use and lost profits

- Defendants giving up all profits from controlling what Justice Coal says is its property

- Prejudgment and post-judgment interest

- Attorneys’ fees and costs

Ramaco Resources and EMCOAL did not respond to requests for comment.

Ramaco has operated mine complexes and processing facilities in West Virginia and Virginia. Earlier this month, it announced adjusted earnings before interest, taxes and other expenses of $23.6 million for the quarter ending Sept. 30.

Third-quarter sales of 1,023,000 tons and third-quarter production of 972,000 tons were both quarterly records, the company said.

Another Justice Firm Faces Federal Lawsuit

Last week, another Justice company got hit with a federal lawsuit filed by trustees of United Mine Workers of America health and retirement benefit plans over what they say is its failure to make payments required under a collective bargaining agreement to support the funds.

The lawsuit is the latest in a long history of grievances alleging Justice’s business empire has neglected to honor agreements to take care of retired miners.

The trustees estimate in the federal lawsuit the coal magnate governor’s Justice Energy Company has underpaid contributions by $158,525 in minimum principal, with $9,518 in interest due and accruing.

Justice’s companies have allowed intermittent lapses in prescription drug coverage that have endangered the health of retirees and their dependents in recent years.

The Justice companies’ mine safety fine debts — consistently among the nation’s highest such totals — have contributed to hundreds of millions of dollars in debt and other legal liabilities mounting across the governor’s personal and business finances.