Try Jim Cramer's Action Alerts PLUS
Metals and Mining

Massey Chief Questions Judicial Ethics Ruling

The Associated Press

06/10/09 - 03:51 PM EDT
TIM HUBER

CHARLESTON, W.Va. (AP) — The chief executive of Massey Energy Co. is questioning whether the U.S. Supreme Court's decision in a judicial ethics case involving the Appalachian coal mining giant will stifle free speech.

The court ruled Monday that elected judges must step aside from cases when large campaign contributions from interested parties create the appearance of bias.

"I hope the Supreme Court's ruling will not silence others from speaking out when change is needed," Massey chief Don Blankenship said in a statement Wednesday.

The case involved more than $3 million spent by Blankenship to help elect Chief Justice Brent Benjamin to the West Virginia Supreme Court.

At the time, Massey was appealing a verdict, which now totals $82.7 million with interest, in a dispute with a rival coal company. Benjamin refused repeated requests to step aside from the case and was part of a 3-2 decision to overturn the verdict.

The coal company, Harman Mining Co., and its president, Hugh Caperton, appealed and high court overturned the verdict and sent it back to West Virginia for further proceedings without Benjamin.

Blankenship said his support for Benjamin in 2004 was really opposition to his opponent, former Justice Warren McGraw.

"Like millions of other Americans, I contributed my time, my energy, and, yes, my money to oppose a candidate I disagreed with personally and politically," Blankenship said. "It is unfortunate that the Supreme Court's ruling is being reported as a matter of corporate influence and judicial review. This is not and was not ever about the company I have served for more than 27 years or the industry I have worked for the majority of my entire life."

Blankenship said he remains optimistic the Harman case will be decided in Massey's favor again, but questioned whether the high court's decision will help improve political debate.

"West Virginia has made significant strides since the defeat of Justice McGraw. Further improvement will only continue if West Virginians feel that they can freely exercise their right to ask for better government," he said.

Massey is the nation's fourth-largest coal producer by revenue and operates mines in West Virginia, Kentucky and Virginia.


Brokerage Partners