Trial in coal contract dispute to begin

Trial in coal contract dispute to begin

Opening arguments are expected today in a lawsuit that pits a steel maker against West Virginia’s largest coal company.

Wheeling-Pittsburgh Steel Corporation is suing a subsidiary of Richmond, Virginia-based Massey Energy for failure to deliver coal to the steel producer’s coking operation in Follansbee.

Wheeling-Pitt sued Central West Virginia Energy Company in April 2005 claiming the company failed to deliver 104,000 tons of metallurgical grade coal per month as required under a contract that went to 2010.

The steel maker’s lawsuit claims Central West Virginia Energy blamed production problems for shortfalls in the Wheeling-Pitt contract. Instead, Wheeling-Pitt alleges that Central West Virginia Energy started diverting coal from its contract to the spot market to take advantage of higher prices.

The trial is expected to take five weeks to complete.

Information from: www.wdbj7.com

Share this post