By Charles Boothe, Bluefield Daily Telegraph
CHARLESTON, W.Va. — Gov. Jim Justice, members of his family and several of his businesses have filed a civil action against Carter Bank & Trust, seeking damages of $421 million related, in part, to financing arrangements for outstanding loans.
The complaint, filed this week in U.S. District Court Southern District of West Virginia at Beckley, alleges Carter Bank defendants participated in conduct … “violating anti-competitive behavior statute, breach of contract and in particular the covenant of good faith and fair dealing, and breach of fiduciary duties and aiding and abetting breach of fiduciary duties relating to financing arrangements between Plaintiffs and Defendants.”
A declaratory judgment is also being sought relating to loan modifications in 2017 made by Carter Bank that, the plaintiffs allege, are “unenforceable” and puts the defendants in a position that they “are not entitled to take any action to realize upon such loans (or collateral therefor or guarantees thereof) as may become due and payable without providing Plaintiffs a good faith opportunity to repay those loans.”
Justice Entities have about $368 million of debt in outstanding loans with Carter Bank, which, according to the complaint, is the remaining debt from $775 million in loans in 2016 with $407 million of that paid down.