A Poca funeral home owner, who a federal judge ordered to pay nearly $3 million for selling and cashing in on pre-need funeral contracts to more than 100 people who weren't actually dead, is fighting to keep his funeral director's license.
Chad Harding, who owns Gatens-Harding Funeral Home, filed a petition late last month, which asks a Kanawha County Circuit judge to prohibit the West Virginia Board of Funeral Service Examiners from revoking his license.
The petition says Harding was notified on Nov. 28 that an "administrative action was being brought against his license ... based upon a default judgment issued against [Harding] in a separate and distinct civil case in which the [funeral board] was neither a party or had jurisdiction with regard to subject matter."
To form its complaint, members of the funeral board simply used the same allegations included in the lawsuit filed by Homesteaders Life Insurance Company against Harding, his lawyer, Jeff Woods, told the Gazette-Mail on Tuesday.
Hardings' petition accuses the board of failing to conduct its own independent investigation, which, it states, "is insufficient under its own rules and regulations."
"What they are saying is that because there was a civil case against [Harding], they have a right to take his license," said Woods. "There's a bunch of shenanigans going on here."
Woods also believes that, because the board is made up of people who work in the funeral home industry and, therefore, are in competition with Harding, it is unethical of them to initiate the revocation of his client's license.
"They have the ability to restrict trade and competition and we think that is what is going on," Woods said.
Regina Foster, executive director of the funeral board, said Tuesday that the statement of charges brought by the board against Harding, his response, and any information about an investigation, is sealed from the public until the case is decided by an administrative law judge. Foster also said she couldn't comment about Harding's petition against the board.
The petition asks for a Kanawha judge to stay any proceedings before the funeral board or an administrative law judge until the petition is resolved.
"We're going to take this all the way to the state Supreme Court and the U.S. Supreme Court, if we have to," Woods said.
Chief U.S. District Judge Robert Chambers, in Huntington, ordered Chad and Billie Harding in August to pay nearly $2.8 million to Homesteaders Life Insurance Company. That amount is three times what the couple is accused of bilking from the insurance company, as damages can be tripled under the Racketeer Influenced and Corrupt Organizations Act.
On Dec. 13, lawyers for Homesteaders filed notice that Clay Holding Company LLC had purchased the Hardings' judgment. Clay Holding is owned by area businessman, Tommy Clay.
Chambers granted the insurance company default judgment, after Woods failed to respond to court orders and comply with court rules. Woods initially responded to the lawsuit and denied its allegations, but then he didn't file anything else in the case until Chambers gave the Hardings notice to dispute a default judgment order.
It was then that Woods wrote to the judge asking that the Hardings not be required to pay the insurance company's expenses. He argued other litigation against the couple, as well as discussions regarding the initiation of proceedings to suspend or revoke Chad Harding's license as a mortician, along with a potential criminal investigation against Harding, made participating in the case involving Homesteaders difficult. Chambers denied Woods' motion and ordered the couple to pay about $69,000 in attorney's fees for the insurance company.
Putnam County Prosecuting Attorney Mark Sorsaia said in August he would "not contradict" Woods' statement that Harding is the target of a potential criminal investigation. Harding has not been charged with any crime.
Reach Kate White at kate.white@wvgazettemail.com, 304-348-1723 or follow @KateLWhite on Twitter.