Jury Awards Wheeling Pitt $219 Million Against Massey
The big news in West Virginia is Wheeling Pittsburgh Steel Corporation’s verdict on Monday for nearly $220 million against Massey Energy Corporation and one of its subsidiaries, Central West Virginia Energy Company. Following a month long trial in Wellsburg, Brooke County, the jury awarded Wheeling Pitt $119.85 million for its compensatory claims and $100 million in punitive damages. I wrote about the trial last month, when Massey chairman Don Blankenship testified.
Wheeling Pitt claimed that Massey and its subsidiary breached a contract to provide Wheeling Pitt with 104,000 tons of metallurgical-grade coal per month for its coke ovens. Ken Ward, Jr.’s article in yesterday’s Charleston(WV) Gazette gives some background.
In reaction to the verdict, Blankenship said that, "We recognized that a trial in Wheeling Pitt's backyard would be challenging, but we were still surprised at the outcome." His comment parallels what I wrote, in questioning what effect his testimony would have on the jury. Now we know: apparently not much, at least in Massey's favor.
Massey has already promised to appeal, hoping to obtain a "more appropriate and favorable decision on appeal." Already the verdict is having an effect on Massey’s bottom line. It announced that its second quarter earnings would be affected because it had budgeted only $16 million to cover any loss, and now must increase that number to account for the amount of the verdict.
In any event, the jury didn't deliberate for too long, considering the trial lasted about a month. The lawyers gave their closing arguments on Monday, and the jury returned its verdict about 9:30 p.m. the same day.
