Bank targets Jim and Cathy Justice for $ 58 million default | New


As companies owned by Governor Jim Justice sue their former banker in federal court, the banking company is claiming more than $ 58 million from Jim and Cathy Justice based on guarantees they signed.

Carter Bank & Trust has filed claims for these millions of dollars based on recent defaults by the Greenbrier Sporting Club and the Oakhurst Club.

It is the latest in legal back-and-forth between the Justice firms and their long-standing bank, with heightened danger in this case due to the signatures personally putting the governor and the first lady on the hook.

Justice and its companies sued the Martinsville, Va.-Based bank in federal court on May 31 for millions of dollars in loans maturing the next day. This lawsuit claimed that the bank had become restrictive, that the financial relationship had become toxic, and that the bank would not cooperate in refinancing upcoming loans for Greenbrier properties.

Now, in a separate lawsuit, Carter Bank is fighting back with two claims seeking a direct path to compensation based on guarantees signed by the Governor and the First Lady of West Virginia. The claims were filed on July 6 in the Circuit Court for the city of Martinsville, Va., Where Carter Bank is based.

Carter Bank, through spokesperson Brooks Taylor, declined to comment on the filed documents: “It is Carter Bank & Trust’s policy not to comment on the press regarding disputes or matters involving clients of the Bank, and therefore the Bank respectfully declines to comment in response to your requests.

The documents filed are admissions of judgment, written and signed agreements accepting responsibility in the event of default. In such circumstances, the note may be presented to court without even notifying the debtor or holding a hearing. By signing, a borrower can sacrifice their right to be heard in court.

Jim and Cathy Justice signed the guarantees during a major restructuring in 2020 of family business debt. The document, which was filed in federal court last week, shows such guarantees were signed on loans representing millions of dollars in loans covering several Justice properties, most of which matured in October 2022.

Loans for the Greenbrier Sporting Club and Oakhurst matured on June 1. Carter Bank says judges owe $ 36,970,156 on the sports club and $ 21,304,934 on the Oakhurst loan. Carter Bank is also asking for interest, late fees and attorney fees amounting to hundreds of thousands of dollars more.

The guarantees originally signed by the judges indicate in bold and capital letters that the provisions relating to the guarantee of judgment have been included. The provision allowed one of the many specified attorneys to file a default claim.

The Greenbrier Sporting Club offers memberships to people who own real estate in the historic Greenbrier Resort, owned by the Justice family. Members enjoy private amenities not available to hotel guests, but also have access to the resort.

Oakhurst Club is a justice development company that has envisioned a golf course designed by sports legends, hundreds of luxury homes and a ski resort.

The Justice Firms filed a lawsuit in federal court against Carter Banks the day before the loans for the Greenbrier properties were due. This lawsuit alleged a deterioration in relations with the bank culminated in a standoff over the refinancing of Greenbrier properties earlier this year.

The lawsuit described tension with Carter Banks peaking over the past eight weeks over the Justice family’s desire to partner with another lender to refinance loans Carter was holding. The justice companies claimed to have been blocked.

“What we were trying to do was pay off Carter Bank, pay off Carter Bank for a big, big, big percentage of the loans we had with Carter Bank,” Governor Justice said in an earlier briefing. this summer.

In its own federal court case last week, Carter Bank said the federal lawsuit was just a delaying tactic.

“The plaintiffs filed this case purely as a delay tactic against the loan repayments they owe defendant Carter Bank,” wrote the bank’s attorneys, including Booth Goodwin, a former US attorney who was the adversary. of the Democratic primary for Justice in the race for governor of 2016.

Carter Bank asserted that over the years its representatives have worked on several occasions and in cooperation with justice companies to restructure or extend various loans, but “in early 2021, Carter Bank informed the plaintiffs that it was not renew or extend two loans that were to mature on their own. terms June 1, 2021.

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