This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Billionaire's Coal Struggles Irking Biz Owners

An Associated Press review of court records found that since the beginning of 2012, there have been at least five lawsuits â¿¿ one in federal court â¿¿ that seek unpaid bills in the three Kentucky counties where Justice has mining operations. Two more actions in Tennessee federal court and two in Wise County, Va., filed since August of 2011 also sought unpaid bills or debts owed as part of a contract. Four of those nine legal claims, which in total exceed $1 million in alleged debts, have been settled for undisclosed amounts.

Aside from those debt claims, a handful of other pending suits seek to settle disputes over Justice's acquisition of mining lands in Kentucky and elsewhere.

Miracle and other business owners in southeastern Kentucky said when they made efforts to collect what they were owed by contacting the Justice company's home office in Roanoke, Va., they were repeatedly delayed. Miracle, who sells specialized mining equipment and employs five people, said the debts prevented him from replenishing his inventory, harming future sales. He said his attorney is in the process of filing a lawsuit.

"When you do business with a billionaire, you think you are going to get paid," said Lee Kersey, owner of M&D Electrical Supply in Hazard. Kersey said Justice's companies owe him about $240,000 for work dating back to January 2012, but he has not filed a suit. Kersey, who has about eight employees, said he received a check for $28,000 in February.

Timothy Bates, a lawyer in Hindman, Ky., sued Justice subsidiary Kentucky Fuel Corporation last year for about $16,000. His client, who did some excavating work, received payment after the suit was filed.

Referring to the other lawsuits, Bates said: "There's definitely a pattern, I'll say that."

Justice said he isn't deeply involved in the day-to-day operations of his coal companies, and complaints about debts have reached him "on a limited basis." But he said he can "absolutely promise" that outstanding debts will be paid.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs