UPDATE 1-US top court to decide Massey Energy case

Fri Nov 14, 2008 2:20pm EST
 
[-] Text [+]

(adds details of the case, paragraphs 3 to end)

WASHINGTON, Nov 14 (Reuters) - The U.S. Supreme Court said on Friday it would hear an appeal by Harman Mining Corp after the top West Virginia court overturned a $50 million jury verdict against Massey Energy Co (MEE.N) in a coal contract dispute.

The appeal asked the Supreme Court to consider whether a West Virginia Supreme Court of Appeals justice should have disqualified himself from deciding the case because Massey's chief executive officer had spent $3 million to help him get elected to the court.

Justice Brent Benjamin twice was in the majority in 3-2 decisions that overturned the $50 million jury verdict against Massey.

Don Blankenship, Massey's chairman, president and chief executive officer, had earlier spent $3 million supporting Benjamin's campaign for a seat on the court. As a justice, Benjamin refused to recuse himself from the case.

Harman Mining in its appeal to the Supreme Court cited the appearance of bias by Benjamin and said its constitutional due process rights had been violated.

The company has said it was forced into bankruptcy by Massey's fraudulent business practices. Massey has rejected the claims, saying Harman's bankruptcy had nothing to do with Massey.

In urging the U.S. Supreme Court to reject the appeal, Massey said there were no allegations that the campaign expenditures had created any actual bias by Benjamin.

The Supreme Court will hear arguments in the case in late February or early March, with a decision expected by the end of June.

In afternoon New York Stock Exchange trading, Massey shares were down $1.15 or 6.2 percent at $17.38. (Reporting by James Vicini, Editing by Gerald E. McCormick)

 

Companies In This Article

Featured Broker sponsored link