West Virginia governor’s coal firm sued over $1M settlement

CHARLESTON, W.Va. (AP) – A coal company owned by West Virginia Gov. Jim Justice is being sued for not paying $1 million in a settlement agreement.

Chapter 11 bankruptcy filings submitted this week by Dennis Ray Johnson II accuse Kentucky Fuel Corp of only paying a portion of a $2 million settlement. The Wednesday filing says the company paid half up front and was supposed to pay the second half in monthly installments of $50,000.

The lawsuit by Peoples Bank says Kentucky Fuel still owes $950,000. The Charleston Gazette-Mail reports the lawsuit stems from a 2014 lawsuit Kentucky Fuel settled in 2015 in which two companies accused it of not upholding a coal transaction.

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