A federal court fight over control of the historic Greenbrier Hotel is turning into a battle royale.
Companies that have been battling Justice family coal companies in court for more than a decade now want into the brawl.
New London Tobacco Market and Fivemile Energy are asking to intervene in a federal lawsuit involving Senator Jim Justice and his family ownership group that owns The Greenbrier.
The new entrants are not aiming to snag the historic hotel, but contend entering a court case focused on The Greenbrier is necessary to protect their debts.
The two companies have been fighting the Justice family’s coal operations in a federal court case in Kentucky that started in 2012 over a mineral rights leasing dispute. The court entered a judgment of nearly $35 million against the Justice companies in 2024.
The companies allege in that case that representatives of the Justice family businesses have participated in fraudulent asset transfers to evade the debt. The lawsuit has kept going as New London and Fivemile have pursued payment and further information about how the Justice businesses operate.
Just last week, U.S. District Judge Gregory F. Van Tatenhove filed a 33-page order in the Eastern District of Kentucky, finding that the Justice family ownership group engaged in a persistent pattern of evading legal obligations and ignoring court mandates about the disclosure of financial assets.
In that case, Van Tatenhove found that 160 incorporated companies in the case are alter egos of the Justice family, stripping away their corporate protections. That conclusion, to “pierce the corporate veil,” would allow the court to hold the owners personally responsible for the companies’ liabilities.
The main corporate entities being sued in that case are Kentucky Fuel Corporation and James C. Justice Companies, although the lawsuit involves dozens of other companies where money and assets are moved in and out.
Some of those companies that are now legally considered alter egos of the Justice family in the Kentucky case are also named as defendants in the separate federal court dispute over control of The Greenbrier Hotel: Greenbrier Hotel Corporation, Greenbrier Medical Institute, Oakhurst Club and Greenbrier Golf and Tennis Club.
Specifically relevant to the lawsuit over The Greenbrier properties, New London and Fivemile Energy allege the Justice companies engaged in wholly fraudulent transfers Kate’s Mountain Farm in Monroe County and five specific parcels in Greenbrier County to Oakhurst Club LLC avoid paying the multi-million dollar debt.
New London Tobacco Market and Fivemile Energy say intervening in The Greenbrier Hotel case can help protect their interests.
In the case over The Greenbrier in U.S. District Court in the Southern District of West Virginia, the Omni Hotels affiliate White Sulphur Springs Holdings is asking for a receiver to be named to oversee the historic resort while pushing out the Justice family.
White Sulphur Springs Holdings bought millions of dollars in first-lien debt on The Greenbrier earlier this year, and lawyers for the company say the collateral is at risk.
The Justice family, meanwhile, has been pursuing a potential $500 million financing deal with New York-based Kennedy Lewis Investment Management, saying the new loan could pay down various debts, including payment to White Sulphur Springs Holding Company.
In the new filing to intervene, New London Tobacco Market and Fivemile Energy also say receivership would help preserve assets for all legitimate creditors.
Without direct participation, lawyers for the companies say, their ability to recover their court-ordered damages will be significantly compromised.
The State of West Virginia’s tax department moved to intervene earlier to secure over $4.4 million in unpaid, unremitted sales and withholding taxes.