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Justice-owned companies settle with Carter Bank

(Capitol Notes - Graphic Illustration/MetroCreative)

CHARLESTON — After years of court cases, businesses owned by Gov. Jim Justice and managed by his adult children announced a settlement Wednesday with a bank where the governor guaranteed more than $300 million in loans.

According to a press release, the global settlement comes after months of negotiations between the Justice family and Virginia-based Carter Bank and Trust after the bank successfully transferred a federal lawsuit to stop collection of the loans to a Virginia federal court.

“This settlement resolves all outstanding disputes between the parties and reinforces the respective parties’ mutual commitment to moving forward constructively and amicably,” said Bob Wolford with the Miller Johnson law firm, speaking on behalf of the Justice family. “The agreement…marks a significant milestone for both Carter Bank and the Justice family, ensuring that both parties can focus on their respective priorities without the distraction of further litigation.”

The agreement between the Justices and Carter Bank was reached Tuesday, though details of the settlement were not disclosed due to confidentiality agreements signed between the two sides. A request for comment from Carter Bank was not returned. But according to the release, the settlement offers a pathway to paying off the more than $301 million owed to the bank by the Justices, since reduced to $291.1 million.

“We are glad to have reached an agreement that puts these matters behind us,” said Jay Justice, Gov. Justice’s son who manages the family coal and agriculture businesses. “Our family is committed to satisfying our outstanding obligations to Carter Bank and fulfilling our commitments under the terms of the agreement reached with Carter Bank.”

Attorneys for Carter Bank filed 21 confessed judgments since April 2023 against Justice, Cathy Justice, Jay Justice, and multiple Justice-owned companies, seeking more than $301 million plus interest and attorney fees. Carter’s efforts to collect on Justices’ loan guarantees comes more than two years after Justice dropped a prior federal lawsuit against the bank.

Carter Bank filed 11 individual cases — called confessions of judgment — against Jim and Cathy Justice in an attempt to collect on those loan guarantees.

Justice’s companies dropped a federal lawsuit against Carter Bank in 2021, with Carter Bank dropping a circuit court lawsuit against Justice’s companies over $368 million in loans that were also personally guaranteed by Justice. According to court filings, the portfolio of loans to Justice’s companies grew from a $4.5 million real estate loan in 2001 to more than $740 million between Justice’s various coal, agriculture, hospitality businesses, and other companies.

In February, a circuit judge in Virginia ruled in favor of Carter Bank, rejecting arguments by Justice’s family last month seeking to block Carter Bank’s attempt to collect on more than $300 million worth of personally guaranteed loans. Carter Bank started work on auctioning Justice-owned properties, including the Greenbrier Sporting Club. Justice’s companies filed a lawsuit in Greenbrier County Circuit Court to block the sale.

“Our family has valued our decades-long relationship with Carter Bank dating back to my dad’s long-standing personal relationship with Worth Carter, the Bank’s visionary founder, and longtime chairman,” Jay Justice said. “We look forward to focusing our attention on these efforts and believe that this resolution will ensure that The Greenbrier remains a part of the Justice family’s holdings for generations to come.”

Steven Allen Adams can be reached at sadams@newsandsentinel.com

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