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Justice Attorneys Seek Stay Of Federal Greenbrier Lawsuit

Sen. Jim Justice, R-W.Va., speaks with reporters at the Capitol subway on Sept. 17, 2025, in Washington. (AP Photo/Mariam Zuhaib)

CHARLESTON – Attorneys for U.S. Sen. Jim Justice want a federal judge to pause a case being brought by the new creditors for the Greenbrier Resort as a state case filed by Justice to halt an alleged takeover of the historic hotel proceeds.

Attorneys representing Justice, his family and businesses connected to the Greenbrier Resort filed a motion Friday asking U.S. District Court Judge for the Southern District of West Virginia Frank W. Volk to stay the federal case filed in April by White Sulphur Springs Holdings LLC, the company linked to Texas-based TRT Holdings. The Justice family wants that action put on hold until a case they filed against TRT Holdings and Virginia-based Carter Bank and Trust challenging the transfer of the remaining $141 million loan amount for the historic resort is resolved.

“This action is part of an orchestrated scheme by Plaintiff White Sulphur Springs Holdings, LLC … and its billionaire owners to seize control of The Greenbrier resort through unlawful means,” the attorneys wrote. “WSSH unlawfully acquired them (the loans) through fraud, breach of contract, and in violation of West Virginia antitrust law. And the parties are currently litigating in West Virginia state court whether the sale of the loans should be rescinded.”

The core of the dispute involves WSSH’s attempt to place the Greenbrier Resort into receivership following the acquisition of loan debt from Carter Bank. Justice’s attorneys contend that WSSH and TRT Holdings – which owns the rival Omni Homestead Resort 40 miles away in Virginia – acquired the loans in an effort to acquire their competitor’s property.

On March 25, Carter Bank announced the sale of the loans to WSSH for $289.5 million, which was roughly $70 million less than what the bank was demanding from the Justice family according to the filing. In April, representatives of TRT Holdings and the Justice family attempted to negotiate a deal where TRT agreed to forgive $200 million in remaining loan debt in exchange for a 50% stake in the Greenbrier.

According to Justice’s attorneys, the Justice family had secured a new lender for the Greenbrier and was willing to pay TRT Holdings $341 million to close out the remainder of the former Carter Bank debt. Instead, WSSH issued a notice of default and termination of forbearance, then filed the federal lawsuit, asking Volk to place the Greenbrier in receivership and seeking a preliminary injunction to halt the Justice family from interfering in Greenbrier finances and operations.

“WSSH has filed an ’emergency’ motion seeking appointment of a receivership that would strip the Justices of possession of The Greenbrier before the state court has occasion to decide whether WSSH validly acquired the purportedly defaulted loans in the first place,” Justice attorneys Steve Ruby and H. Rodgin Cohen wrote. “WSSH’s motion to appoint a receiver is baseless and should be rejected. But this Court need not get that far.

“Whether WSSH has any right to enforce the loan agreements – and thus pursue this action at all – is being litigated in Greenbrier County Circuit Court,” the attorneys continued. “And if the state court concludes that the purported sale of the loans to WSSH must be rescinded, or that WSSH cannot otherwise enforce those loans, this action ends. There is no need for this Court to jump into the fray and expend judicial resources until that critical threshold question is resolved.”

Justice’s attorneys have accused WSSH/TRT Holdings of secretly acquiring between $12 million and $15 million in second-lien Greenbrier debt in 2024, which allegedly prohibited TRT Holdings from securing the Greenbrier’s remaining Carter Bank loan debt. They also accused TRT Holdings of improperly acquiring proprietary Greenbrier financial information in 2024. Attorneys for WSSH have denied these claims.

According to the filing, the appraised value of the Greenbrier and related properties (Greenbrier Sporting Club, Oakhurst Real Estate Development, timber and farming properties, coal reserves) comes to more than $1.1 billion, while the estimated loss in business value since the filing of the federal lawsuit exceeds $500 million, with bookings down.

A prehearing conference in the federal case is set for 11 a.m. June 1 in Charleston.

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