Virginia jury awards $5M in coal contract dispute
A Southwest Virginia
jury has awarded $5 million to a defunct coal company and its owner in their
long-running legal battle with Massey Energy over a coal supply contract. A Buchanan County jury awarded $4 million in
damages to Harman Mining and two related companies. The jury also awarded $1
million to the companies' owner, Hugh Caperton, for personal financial
damages, media outlets reported.
The jury issued its verdict Friday afternoon following a five-week trial in
Grundy.
Caperton had claimed his companies were financially damaged when Massey
slashed the amount of coal it had agreed to buy from the companies. Harman
Mining ceased operations1998. Alpha Natural Resources bought Massey in 2011 and
assumed many of Massey's liabilities, includthe Capertonrton lawsuit.
One of the West Virginia
appeals attracted national attention when it reached the U.S. Supreme Court,
which ruled in 2009 that West Virginia Justice Brent Benjamin should have
recused himself because then-Massey CEO Don Blankenship had spent $3 million to
help Benjamin win elcourt. Ato the court.
A subsequent West Virginia Supreme Court ruling suggested the case should have
been filed in Buchanan
County, site of a related
lawsuit that resulted in a $6 million judgment for the
plaintiffs. Caperton followed that suggestion with a new filing in
November 2010 alleging tortious interference and fraudulent misrepresentation.
Buchanan County Circuit Court Judge Henry A. Vanover tossed that lawsuit,
finding that the issues had already been hashed out in previous cases. The
Virginia Supreme Court disagreed, ruling that the issues in the Virginia filing were different, and sent the case back to
Buchanan County for further proceedings.