A federal judge overseeing a move to place The Greenbrier Hotel under the authority of a third-party caretaker has scheduled a date to hear evidence early next month.
The evidentiary hearing of 9:30 a.m. May 11 before U.S. District Judge Frank Volk represents a coming milestone in the battle for control over the historic resort.
U.S. Senator Jim Justice and his family-led business organizations are being sued in U.S. District Court for the Southern District of West Virginia by an affiliate of TRT Holdings, parent company of Omni Hotels & Resorts.
TRT Holdings is owned by Texas billionaire Robert Rowling, whose son Blake serves as the company’s president. Omni operates more than 50 luxury properties.
TRT’s newly formed White Sulphur Springs Holdings bought nearly $300 million in first-lien debt on The Greenbrier and related properties and then moved for receivership of the historic hotel, essentially asking the federal court to appoint a third-party caretaker.
The Justice family, which bought The Greenbrier in 2009, has filed counterclaims arguing that TRT’s purchase of the debt and supporting legal documents should be disallowed, alleging that the buyer used insider information to gain a premature and unfair advantage.
At the center of the conflict is the historic 5-star luxury resort that features 710 guest rooms, four golf courses and a private casino featuring 320 slot machines and 35 table games.
Judge Volk in his scheduling order underscored just what’s at stake.
“The parties’ filings agree on at least one point: This matter is of significant import not only to their clients but to the citizens of this State,” Volk wrote.
The judge’s order set additional deadlines for the lawyers to meet: response briefs by April 27 and reply briefs by May 4. Volk also set a prehearing conference for the lawyers at 11 a.m. May 7.
Finally, the judge chastised both legal teams for failing to adhere to procedural rules and professional standards. Specifically, the court criticized the lawyers for TRT for improper filing formats and the legal team representing the Justice businesses for lacking legal authority in their motions.
“The governing rules are not hyper-technical mandates lacking a basis in reason and common sense,” Volk wrote in the scheduling order.
“Instead, they are one of the primary means by which a court, among other things, (1) guarantees due process, (2) manages judicial resources, and (3) assures uniformity across the docket. It is for this reason that the Court — and so many other courts — insist upon scrupulous adherence.”