Gould vs. Black

Another West Virginia electric motor company is suing its mining client

Keep an eye out; there may be a trend developing here. For the second time in three months, a lawsuit has been filed by a West Virginia electric motor manufacturer against a mining equipment company. This one could be called “The Bounty (of Mounties) in the County”.

Gould Electric Motor of Indore, WV, is suing Montgomery Equipment Company, Inc. (of Powellton, WV) for alleged fraudulent and negligent misrepresentation. Gould, which specializes in serving the mining industry, is located in Clay County, which neighbors Kanawha County (the state’s largest in population and home to Charleston, the state capital). The two counties border each other and together cover 1,255 square miles of mid-state Appalachia; the heart of mining country. It’s an area blighted by industrial transition from longtime reliance on the coal industry. Mining and energy companies pepper the area with a mix of competition and loss-cutting, a possible explanation for the recent lawsuits. In late July, another electric motor business sued an energy company in Huntington, WV for the same reason: failure of payment.

Gould filed a lawsuit in Clay Circuit Court against Montgomery alleging the defendant “breached its implied and express contracts to pay for the plaintiff’s performance of the work,” per a report by the West Virginia Record dated October 5.

The cross-county relationship is more relevant than just a neighborly squabble here. According to the complaint, between May 31, 2012 and April 30, 2014, Gould built certain mining equipment in Clay County, wherein Montgomery agreed to purchase. Despite numerous attempts to collect payment, the suit says, the balance amounting to $136,980 remains unpaid. The plaintiff alleges Montgomery Equipment misrepresented that it would pay for work and services rendered by Gould and fraudulently induced the plaintiff into performing such labor and services.


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