Lawyers: With $2.4M owed, Greenbrier Hotel employees could lose health insurance

The Greenbrier Hotel Corporation has fallen behind on payments to employee health insurance, and those employees are in danger of losing coverage if payment is not made by Tuesday, according to a letter from a law firm representing Amalgamated National Health Fund.

The letter — dated Friday — from Ronald E. Richman, from New York-based Schulte Roth & Zabel LLP, was sent to Adam C. Long, the chief financial officer and treasurer of the Greenbrier Hotel Corporation. Also copied on the emailed letter were representatives for the Greenbrier Council of Labor Unions, which is comprised of eight member unions representing Greenbrier Hotel employees.

According to the Secretary of State's Office, the Greenbrier Hotel Corporation includes family members and associates of Gov. Jim Justice.

What is owed?

The letter states the Greenbrier Hotel Corporation is four months delinquent in its contributions to Amalgamated National Health Fund, owing approximately $2.4 million in delinquent contributions, with an additional $1.2 million in contributions "currently, or soon to be, due and owing."

The letter also claims these delinquent contributions include contributions that were deducted from employees' pay but not remitted to Amalgamated National Health Fund.

"If payment is not timely made, the Health Fund will suspend health and welfare coverage to all of the Greenbrier's covered employees," the letter from Richman stated. "The Health Fund will pursue all remedies available to it, including, but not limited to, initiating litigation to recover the full amount of the Delinquent Contributions, plus interest, liquidated damages and attorneys' fees,..."

Read the letter at bit.ly/2024_GreenbrierEmployeeInsurance.

The letter requests payment of the delinquent contribution as soon as possible but not later than Tuesday — the same day the Justice family-controlled historic hotel is on the auction block due to a loan default, according to a trustee's sale notice published last month by the Lewisburg-based West Virginia Daily News.

Attorneys representing the Greenbrier Hotel Corporation this week filed a request in Greenbrier Circuit Court to stop the auction, with a hearing scheduled for Friday. According to the filing in Greenbrier County Circuit Court, the motion for a temporary restraining order and preliminary injunction was filed by the Greenbrier Hotel Corp., and James C. Justice III and Jillean L. Justice, the adult children of Gov. Jim Justice.

'Morally and legally wrong'

A statement released Monday from Peter Bostic, chairperson of GCLU, read, in part, "We are heartbroken and disappointed to learn that The Greenbrier Hotel despite its contractual and legal obligation to do so, has become severely delinquent to our Health insurance carrier (Amalgamated National Health Fund, 'Fund'). Additionally, we are concerned to learn that the Greenbrier has not even remitted to the Fund, the Employees' share of the Health Benefit contribution which the Greenbrier has been deducting from the employee's paychecks."

Bostic's statement also said The Greenbrier's delinquency has put members' health care benefits in "severe jeopardy and is morally and legally wrong."

The GCLU and its affiliated unions, according to Bostic's statement, are "pursuing every legal option at our disposal to seek a quick and just resolution for the Greenbrier Employees that have been wronged."

Requests for comment from the Greenbrier Hotel Corporation were not received as of press time.

The Real WV, a nonprofit multimedia organization, was first to report this story.