Supreme Court Denies Review of Massey Energy-Wheeling Pittsburg Ruling
12/02/2008 - Massey Energy comments on the United States Supreme Court’s decision to deny consideration of a July 2007 Circuit Court decision that awarded $220 million to Wheeling-Pittsburgh Steel.
Massey Energy Co. released a statement in response to the United States Supreme Court’s decision to deny consideration of a July 2007 Circuit Court of Brooke County, W. Va., decision that awarded $220 million to Wheeling-Pittsburgh Steel.
"We are disappointed because we felt our case was worthy of the Court's review, but we understood from the start that the Court accepts only a very limited number of cases every year," said M. Shane Harvey, Massey Energy Vice President and General Counsel.
The Brooke County jury unanimously awarded Wheeling-Pittsburgh $219.85 million in its lawsuit against Massey Energy and its subsidiary Central West Virginia Energy Co. The contract dispute originated in 2004, when Central West Virginia Energy declared force majeure on portions of its coal shipment obligations due to conditions beyond its control.
Wheeling-Pittsburgh Steel subsequently sued Central West Virginia Energy and Massey seeking damages related to its cost of replacement coal and coke and repairs to its coke ovens.
In May 2008, the West Virginia Supreme Court of Appeals denied Massey Energy and Central West Virginia Energy’s request for appeal on the decision. At the time, Massey Energy said that it would continue to challenge the decision.
Through the interim period, Massey Energy has accrued for the entire verdict amount, including interest, as detailed in its SEC filings.
Headquartered in Richmond, Va., Massey Energy has operations in West Virginia, Kentucky and Virginia. The fourth-largest coal producer by revenue in the United States, Massey Energy is included in the S&P 500 Index.
