Federal Judge Transfers Gov. Jim Justice’s Lawsuit Against Carter Bank and Trust to Virginia Court

The ongoing legal battle between Virginia-based Carter Bank and Trust and West Virginia Governor Jim Justice has taken a new turn as a federal judge has transferred the case to a neighboring Virginia federal court. The lawsuit, filed by attorneys representing Governor Justice, First Lady Cathy Justice, and 15 Justice-owned companies, including the Greenbrier Resort, revolves around the bank’s attempt to collect over $300 million in personal loan guarantees made by the Justices.

U.S. District Judge Frank W. Volk granted Carter Bank’s motion to transfer the case to the U.S. District Court for the Western District of Virginia, where the bank is headquartered. The judge also denied the bank’s motion to dismiss the lawsuit, citing contract clauses that require any disputes to be filed in Virginia courts.

The lawsuit was filed in federal court in West Virginia just days before a scheduled hearing in a Virginia court, where oral arguments were supposed to be heard regarding the loan guarantees. Carter Bank has filed multiple confessed judgments against the Justices and their companies in an attempt to collect on the loans.

The decision to transfer the case to Virginia was based on the location of key witnesses and evidence, as well as the potential impact on Virginia’s economy if Carter Bank’s assets are affected. The ruling highlights the complex legal battle between the Justice family and Carter Bank, with significant financial implications at stake.

Stay tuned for further updates on this developing story.