FAYETTEVILLE, WV (WOAY) – An engineering firm has filed a lawsuit in Fayette County Circuit Court asking a judge to halt the sale of Kanawha Falls Public Service District to West Virginia American Water while the firm seeks to recover debt owed to it by the PSD.
According to a complaint, the E.L. Robinson Engineering Company is alleging that the $13 million that will be paid to the Fayette County Commission does not specifically make provision for the debt it is owed. Robinson says once the sale is complete, Kanawha Falls will have no remaining assets from which the firm can collect its debt.
Robinson charged Kanawha Falls roughly $1.6 million for its services dating back to 2018. The public service district still owes more than $850,000.
“Robinson is entitled to recover the value of the services provided, which is no less than $852,819.79, plus additional amounts for services performed through project completion,” the complaint reads.
Some of the work contributed to the firm during that time was supposed to facilitate repairs in Cannelton Hollow and Scrabble Creek, where residents have dealt with sewer leaks following a flood in 2022.
The firm said it reached out to both Kanawha Falls and West Virginia American Water and has received no response.
According to Robinson’s complaint, the agreement for the sale of Kanawha Falls and two other Fayette County public service districts negotiated by the Fayette County Commission explicitly says that West Virginia American Water will assume no debt or liability for any of the public service districts.
“WVAWC has expressly disavowed paying any current liabilities of Kanawha Falls in the proposed Asset Purchase Agreement,” the complaint reads.
Although the Fayette County Commission will receive $13 million to repay grants, loans and any outstanding items, Robinson said it is not specifically named as a creditor in the agreement.
“The $13,000,000.00 sale proceeds will be paid to the Fayette County Commission and applied to repayment of grants, loans, system debts, and penalties, with no provision for payment of E. L. Robinson’s claims,” the complaint reads.
In November of 2025, Newswatch reached out to the Fayette County Commission about allegations made by Kanawha Falls Public Service District Jonathan Grose claiming the deal did not cover all the debt owed by the PSD.
“The debt will be covered in the purchase price due to depreciation of various assets from the grants that were given,” Fayette County Commission President John Brenemen told Newswatch in an email dated Nov. 13, 2025.
In its complaint, Robinson cites a letter from the Kanawha Falls board to the Public Service Commission that makes similar claims that the agreement does not adequately address outstanding debt owed by Kanawha Falls.
“The proposed agreement does not adequately address or provide for the assumption and satisfaction of all outstanding debts and liabilities of the Kanawha Falls PSD,” the letter reads.
According to the complaint, two state agencies moved against Kanawha Falls PSD shortly after the board sent its letter.
“[J]ust thirteen days after the Kanawha Fall’s statement was docketed, the staff of the West Virginia Public Service Commission filed its “Staff Petition to the Commission to Order a General Investigation of the Kanawha Falls Public Service District” (See Exhibit D). The relief sought includes (a) the appointment of a receiver for Kanawha Falls Public Service District and (b) the removal of Chairman Jonathan Grose from the board of directors of Kanawha Falls,” the complaint reads. “On June 11, 2026, the West Virginia Department of Environmental Protection filed an action against Kanawha Falls for, inter alia, violations of a unilateral Order that had been entered in May of 2024, following inspections that occurred in 2023. The suit is silent as to why the Department waited more than two years after the Order was issued to file suit.”
Grose ultimately resigned, and the Kanawha Falls Public Service District has voted to move forward with the sale and is expected to formally approve the deal this month. Robinson says the issue of debt still remains.
“If the asset sale to WVAWC is completed without payment or provision for payment of E. L. Robinson’s outstanding invoices, Kanawha Falls will be dissolved and will have no assets from which E. L. Robinson can collect its debt,” the complaint reads.
Robinson is asking for the sale to be blocked and for its debts to be paid back in full, plus additional amounts paid through project completion. It said the sale could continue once its debt is officially accounted for.
“[R]equiring Kanawha Falls to reserve funds from the sale proceeds to satisfy E. L. Robinson’s claims, or to delay the sale pending resolution of this action, will not cause Kanawha Falls substantial harm,” the complaint reads “The proposed asset sale can proceed at a later date once E. L. Robinson’s claims are resolved and provided for in the transaction.”
Robinson warns that the sale could have far-reaching consequences for public utilities.
“If public service districts can obtain professional engineering services and then dispose of their assets to avoid paying for those services, qualified engineering firms will be unwilling to serve public service districts, harming the public interest,” the complaint reads.
You can read the full complaint here:
Mike Teaney contributed reporting to this story.
