CHARLESTON, W.Va. — U.S. District Judge Joseph Goodwin is warning that he might toss out a federal lawsuit filed by The Greenbrier resort against its insurers.
Goodwin says The Greenbrier and associated companies had 90 days to serve the insurers with official papers on the lawsuit that was filed Feb. 15.
A court filing by Goodwin on Tuesday “orders the plaintiffs to demonstrate good cause for not serving the defendants with process.”
“Failure to respond to this notice within ten days or an insufficient showing of good cause will result in dismissal without prejudice of this case against the defendants.”
Service of process is how one side of a lawsuit gives appropriate notice of the initial legal action to the defendant, allowing that person to respond before the court
Order in Greenbrier Case (Text)
The lawsuit claims insurance companies owe at least $100 million to fix damage from an enormous flood that hit the historic Greenbrier Resort and surrounding properties.
The plaintiffs include The Greenbrier, The Greenbrier Sporting Club, Greenbrier Sporting Club Development Co., Old White Charities, Justice Family Group and more.
The resort and the rest of the properties are owned by West Virginia Gov. Jim Justice and his family. There are at least six lawyers representing the group.
The lawsuit claims the insurance companies have dragged their heels on payment after the June 23, 2016, flood, creating cash flow problems that affected the rest of the family’s business holdings.
The defendants — insurance companies and underwriters — are so numerous that describing them takes 18 pages of the 62-page lawsuit.
The lawsuit claims the insurers have paid only $37 million of The Greenbrier’s flood-related expenses.
“Because of Defendant Insurers’ intransigent, bad faith, unreasonable refusal to honor their contractual obligations, Plaintiffs — and in particular Greenbrier Hotel — have been brought to near financial insolvency and have been unable to fulfill certain of their financial obligations,” the lawsuit states.
The lawsuit asks for millions of dollars in losses, plus damages and attorneys fees. Discovery has been referred to Magistrate Judge Dwane Tinsley.