Virginia Fuel Corp. v. Lambert Coal Co.Annotate this Case
Virginia Fuel Corporation and Lambert Coal Company entered into an agreement by which Virginia Fuel agreed to acquire certain assets owned by Lambert. James C. Justice Companies, Inc. executed a guaranty guaranteeing Lambert’s obligations under the agreement. After Virginia Fuel stopped making payments under the agreement, Lambert filed suit against Virginia Fuel and Justice Companies, alleging breach of the agreement and breach of the guaranty. Virginia Fuel and Justice Companies counterclaimed for breach of contract. The circuit court granted summary judgment in favor of Lambert and dismissed Defendant’s affirmative defense of recoupment as well as Defendants’ counterclaim. The Supreme Court affirmed, holding that the circuit court did not err in granting summary judgment to Lambert on its complaint, sustaining Lambert’s demurrer to Defendants’ counterclaim, and dismissing Defendants’ defense of recoupment.