Massey wins favorable ruling from W. Virginia court

HOUSTON Nov 12 (Reuters) - The West Virginia Supreme Court on Thursday ruled again in favor of coal miner Massey Energy Co MEE.N in a contract dispute after the U.S. Supreme Court said the state court's initial decision needed review.

In June, the U.S. Supreme Court said a West Virginia judge should have disqualified himself from hearing an appeal of a $50 million jury verdict against Massey because the company's CEO had been a major campaign donor to the judge's election campaign.

At that time, the top U.S. court also ordered that the West Virginia Supreme Court revisit its 2008 ruling that reversed a 2002 verdict by the Boone County circuit court to award $50 million to Harman Mining Corp and its president, Hugh Caperton.

"We reverse the judgment in this case and remand for the circuit court to enter an order dismissing this case against A.T. Massey Coal Company and its subsidiaries with prejudice," the West Virginia Supreme Court said in its ruling.

The U.S. justices had held that West Virginia Supreme Court of Appeals Justice Brent Benjamin should have removed himself from deciding the case because Massey Chief Executive Don Blankenship had spent $3 million to help him get elected to the court.

"We have always stated that the West Virginia Supreme Court's initial decision in favor of Massey was correct, the essential facts in this case have not changed, and no legal arguments were presented by our opponent that would have merited reversal," Shane Harvey, Massey vice president and general counsel, said in a statement.

Harman Mining has said it was forced into bankruptcy by Massey's fraudulent business practices. Massey has rejected the claims, denying responsibility for the bankruptcy.

Harman Mining cited the appearance of bias by Benjamin and said its constitutional due process rights had been violated. (Reporting by Anna Driver; Editing by Phil Berlowitz)