Severstal Responds to Supreme Court Appeals Decision
12/04/2008 - Severstal North America comments on the U.S. Supreme Court’s decision to deny any further consideration of appeals of a previous jury verdict in favor of Wheeling Pittsburgh Steel and Mountain State Carbon, now known collectively as Severstal Wheeling.
Severstal North America responded to the U.S. Supreme Court’s decision to deny any further consideration of appeals of a previous jury verdict in favor of Wheeling Pittsburgh Steel Corp. and Mountain State Carbon, LLC, which are now known collectively as Severstal Wheeling, Inc.
The appeals had been filed by Massey Energy Co. and its subsidiary Central West Virginia Energy Co. following a unanimous decision by a Brooke County jury to award Wheeling-Pittsburgh $219.85 million in its lawsuit against the two companies.
The Supreme Court’s decision effectively puts the contract dispute—which had initiated in 2004— to an end. The decision renders as final the judgment that supports the damages originally awarded to Wheeling Pittsburgh Steel and Mountain State Carbon. Those compensatory and punitive damages, awarded in July 2007 by a West Virginia Circuit Court jury, totaled approximately US$267 million, including interest.
Severstal acquired Wheeling Pittsburgh Steel and the remaining 50% ownership of the Mountain State Carbon joint venture as part of its acquisition of Esmark, Inc., completed in August 2008. As such, the award payment will be made to the applicable business units of OAO Severstal.
“We’re pleased to have closure in this matter,” commented Marty Szymanski, Vice President and General Counsel of Severstal North America. “It’s been a long process as the case has made its way through the trial and appellate courts.
“The decision by the U.S. Supreme Court to end the appeals process, and allow the original jury award to stand, clearly validates the merits of the case and the substantial efforts of employees and advisors in fighting for a just result,” concluded Szymanski.
“The decision by the U.S. Supreme Court to end the appeals process, and allow the original jury award to stand, clearly validates the merits of the case and the substantial efforts of employees and advisors in fighting for a just result,” concluded Szymanski.
Severstal North America, a subsidiary of OAO Severstal, an international, vertically integrated steel producer, from mining to finished products. Incorporated in 1993, the company focuses on high-value-added and unique niche products and has a successful track record of operating steel making facilities in CIS, North America and Europe. In 2007, Severstal produced 17.5 million tons of steel. Revenues were $15.2 billion and EBITDA $3.7 billion. EPS were $1.92.
