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Justice gets served

COAL mining billionaire Jim Justice has left a trail of disgruntled contractors across central Appalachia after allegedly reneging on payments for work dating back to 2011.

Staff Reporter

At least nine lawsuits have been filed, with more business owners sitting on claims that they are owed money for work at Justice’s mines and have not been payed, according to the Associated Press.

Justice is president and CEO of 47 different companies, including coal operations in Kentucky, Tennessee and Virginia, under parent company James C Justice Companies.

Upon the death of his father in 1993, Justice became the president and CEO of Bluestone Industries and Bluestone Coal Corporation, which he expanded into agriculture and golf courses, among other things.

In 2009, Justice sold the company’s West Virginia coal operations to Russian Mechel for a reported $436 million and an additional $240 million in Mechel shares.

In an interview with the Associated Press, West Virginian Justice acknowledged his companies had some debts, but blamed the problems on the downturn of the global coal industry.

"The coal business is terrible, it's just terrible and we're doing everything in our power to stay open and keep people working," Justice said.

"We're one of the few (companies) that are even still working, trying to employ people and pay taxes."

Justice told AP he was not heavily involved in the operations of his coal companies and complaints about debts reached him "on a limited basis." But he said he could "absolutely promise" the debts would be paid.

"Everybody should be really confident they're going to get paid," he said.

Justice offered a dire outlook on the future of coal, even going as far to say it might be the end for the fuel.

"You're in a time when the world economies are really struggling, our economy is really struggling, utilities are converting to natural gas, and you may be witnessing the death of the coal industry," Justice said.

The news source reported that it had reviewed court records and found that since the beginning of 2012, there had been at least five lawsuits filed by businesses seeking the company to settle debts for work undertaken in the three Kentucky counties where Justice has mining operations.

Two more actions in Tennessee federal court and two in Virginia, filed since August of 2011, also sought unpaid bills or debts owed as part of a contract. Four of those nine legal claims, which in total exceed $1 million in alleged debts, have been settled for undisclosed amounts.

Aside from those debt claims, a handful of other pending lawsuits seek to settle disputes over Justice's acquisition of mining lands in Kentucky and elsewhere and a number of businesses the AP spoke to are reportedly yet to file claims.

Justice said settling debts isn't as easy as writing a check when his mines are trying to remain open and producing coal and if he payed all of his debts, he would be forced to “shut everything down”

Federal records say that the company has 120 coal mines, but only 21 are active and 18 are temporarily idled.

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