CHARLESTON, W.Va. — A company suing Gov. Jim Justice and his family over a loan on a helicopter says it would be willing to participate in a settlement conference — as long as West Virginia’s governor is there in person.
Citizens Asset Finance filed its letter earlier this month with U.S. District Judge Alison Nathan, saying it would be amendable to a settlement conference with a magistrate judge in an ongoing dispute over debt on a helicopter.
But the company says it would want the settlement conference before June 14.
And it wants this stipulation too: “Defendant James C. Justice II (guarantor of the loan that is subject of this action) appearing and participating personally.”
The dispute over the multi-million-dollar debt has been going on since September in federal court in the Southern District of New York.
Governor Justice’s family businesses — and Jim Justice personally — are being sued over default. The amount was originally $4 million, but it’s been whittled down to a little more than $2 million after the sale of the helicopter that created the debt in the first place.
Jim Justice is singled out because he signed documents personally guaranteeing the loan.
Other defendants include Justice Aviation LLC and James C.Justice Companies Inc. The lawsuit also lists the governor’s grown children, Jay Justice and Jill Justice, as members of the limited liability corporation that took out the loan.
Lawyers for Justice filed an earlier letter, dated April 5, noting that no in-person meeting had yet occurred. That letter objected to the possibility of summary judgement before the end of the discovery phase.
“This is a case that certainly should and almost unquestionably will settle, either at the mandatory meeting of counsel or a subsequent mediation,” wrote the lawyers for Justice.
Lawyers for Citizens Asset Finance went ahead fired a warning shot last week. The lawyers filed notice of a motion for summary judgment on May 21.
The same day, lawyers for Justice filed a set of responses.
In one, Justice responds to a request to admit to defaulting on the guaranty.
The response: “James C. Justice II objects to the word default as being undefined for purposes of this request and being subject to multiple interpretations.”
Another section provides a response to an allegation that Justice defaulted on a forbearance agreement.
The response: “James C. Justice II objects to the word default as being undefined for the purposes of this request and being subject to multiple interpretations.”
Jim Justice also provided his point of view in another document filed in federal court.
In that one, Justice is asked a few questions about how is most knowledgeable about the aircraft and its sale. He answers his son, Jay Justice.
Another question asks about Justice’s knowledge of his own assets: “Identify the person(s) most knowledgeable regarding your assets, liabilities and net worth as of the time of answering these interrogatories.”
There was no real answer to that request.
“Defendant objects to this interrogatory as the information sought does not relate to any claim or defense pleaded by any party, and constitutes otherwise impermissible asset discovery prior to judgment.”
This all started when Justice Aviation took out a loan on Dec. 30, 2009, for an AgustaWestland S.p.A. model A109S helicopter and two Pratt and Whitney Canada model PW207C helicopter engines.
Justice Aviation then leased the aircraft to James C. Justice Companies. The full amount was $6.6 million. Jim Justice also signed a 2009 guaranty agreement on the loan.
“As set forth therein, the guaranty is absolute and unconditional, and guarantees all payment and performance obligations of the borrower under the loan agreement and the note,” wrote the lawyers for the lender.
Before the loan matured, Justice aviation and Jim Justice, as the guarantor, defaulted, the lender claims.
On Jan. 11, 2017, the lender and Justice’s businesses entered into a forbearance agreement, which is a special agreement to delay a foreclosure. That was five days before Justice’s inauguration as governor.
At that point, the debt was no less than $4,283,631.73, the lawsuit claims.
After the forbearance expired May 31, 2017, the lender reminded Justice and his companies that the initial defaults continued to exist and that additional defaults had piled up.
Lawyers for the governor’s companies responded late last year that Justice Aviation was trying to resolve the matter by selling a helicopter for $2,200,000 — but that offers kept fizzling before lender Citizens Asset Finance would give its approval.
Citizens Asset Finance says Justice’s companies didn’t actually provide a copy of the offer or communicate any urgency.
Last September, Justice’s companies actually did sell the helicopter for $2,100,000.
Citizens Asset Finance then received a payment of $1,750,886.18, plus a later payment of $200,000.
The past due principal, accrued interest and late fees still leaves Justice’s companies with a $2,438,015.16 debt, according to Citizens Asset Finance.
During a news conference at the state Capitol at the beginning of this month, Governor Justice told reporters he expected to soon resolve his various private business debts, specifically their back taxes.
The news conference was about the state’s own fiscal picture, but it led to a question about the governor’s personal finances.
“I think there’s a day coming in just a matter of a couple of days to where we’ll be able to report to you that every single tax owed from any of my affiliates are paid and paid in full,” Justice said May 4.
“I’ve told you that was coming. And I’ve told you I wouldn’t walk away from any obligation whatsoever.”