West Virginia Governor Jim Justice and his family have relocated their $1 billion lawsuit against Carter Bank & Trust from West Virginia to the Western District of Virginia. The move was initiated by Carter Bank, citing the location of its primary operations and directors in Virginia. The lawsuit concerns the bank’s handling of loans for Justice’s coal businesses, which, according to the Justice family, caused significant financial damage to their businesses.
The case has been shifted to mitigate potential conflicts of interest considering Governor Justice’s political standing. Despite the plaintiffs arguing that West Virginia, being their home and business location, would be the appropriate place, U.S. District Judge Frank Volk prioritized impartial proceedings. Virginia’s suitability as the venue was determined based on the location of key witnesses, representatives, family counsel, primary businesses, and assets.
Factors like distance from Western District of Virginia and Southern District of West Virginia also influenced the decision.
Relocation of Justice family’s billion-dollar lawsuit
Both regions hold equal importance depending on the frequency and relevance of ongoing legal proceedings. The lawsuit’s centralization in the Western District of Virginia was justified by its proximity to the majority of concerned parties and access to significant resources, like case documents and essential witnesses.
The lawsuit accuses Carter Bank of taking detrimental business actions that negatively affected their businesses, despite an erstwhile positive relationship. Allegations include unjust relocation of vital monetary assets and enforcement of collateral payments, severely affecting their liquidity. They argue the bank’s abrupt behavioral change not only breached trust but also previous contractual agreements. The companies seek compensation for the damages incurred due to the alleged irresponsible behavior of Carter Bank.
Adding to the jurisdiction dispute, the bank’s legal team revealed that around 350 documents agreed upon by the Justice family mandate Martinsville, Virginia as the essential venue for disputes. Judge Volk underscored the plethora of witnesses and evidence in the Western District of Virginia and warned about the high impact a decision against Carter Bank could have on Virginia’s economy.
