$219.85 million awarded to Wheeling-Pittsburgh
Wheeling-Pittsburgh Corporation confirmed that a Brooke County, West Virginia, jury unanimously awarded the Company $219.85 million in its lawsuit against Massey Energy Company and its subsidiary Central West Virginia Energy Company (CWVEC).
The award consists of $119.85 million in compensatory damages as well as $100 million in punitive damages, the latter split evenly between Massey Energy Company and CWVEC.
The lawsuit was filed by Wheeling-Pittsburgh in April 2005, and arises out of CWVEC's failure to deliver significant quantities of metallurgical coal during the period December 2003 through early 2006 as required by the long-term coal supply agreement between CWVEC and Wheeling-Pittsburgh. This non-compliance forced Wheeling-Pittsburgh to fulfill its metallurgical coal and coke requirements in the spot market where supply was tight and prices had dramatically escalated and also led to production disruptions which resulted in equipment damages to the Company's coke batteries.