Fayette County, WV (WOAY) – Last week, the circuit court of Fayette County ruled in favor of E.L. Robinson Engineering and issued a temporary restraining order that prevented Kanawha Falls PSD from taking any steps to approve the asset purchase agreement negotiated between the Fayette County Commission and West Virginia American Water.
The West Virginia-based engineering firm claims they are owed around $852,000 by Kanawha Falls PSD, and this debt is not accounted for in the purchase agreement.
Last week’s court order scheduled a preliminary injunction hearing, which was held today before the Honorable Judge Tom Fast.
Kanawha Falls PSD had no representation at the hearing; however, the West Virginia Public Service Commission and West Virginia American Water were present.
A limited preliminary injunction was ordered by Judge Fast, which is narrower than the temporary restraining order.
Under the preliminary injunction, Kanawha Falls PSD can move forward to approve the sale of its assets, and the West Virginia Public Service Commission can continue to move the deal forward and hold an evidentiary hearing.
However, before any closing or final transaction of the sale can take place, the debt owed to E. L. Robinson Engineering must be satisfied.
Judge Fast also mentioned that if an agreement on the amount owed to the engineering firm cannot be reached, it must be litigated – a process that could take a very long time and further delay any progress on water and sewer service issues facing the Upper Kanawha Valley.
Fast also ruled that a trial date for E. L. Robinson’s breach of contract claim with Kanawha Falls PSD must be set.
WOAY will continue to follow this story and provide updates as they are available.
