PITTSBURGH, May 3 (UPI) -- A Pennsylvania county judge ruled a West Virginia coal company owes $104 million in damages for delivering less coal than promised to an Ohio power company.
In the opinion released Monday, Allegheny County Common Pleas Judge Joseph James said the evidence "clearly established" the defendants never met their contractual obligation, the Pittsburgh Post-Gazette reported.
The ruling came five years after a lawsuit was filed by Allegheny Energy Supply Co., based in Akron, Ohio, and a subsidiary, Monongahela Power Co. The claims arose from a contract dispute between the plaintiffs and Anker West Virginia Mining Co., which later was purchased by International Coal Group.
In the contract, the plaintiffs agreed in February 2005 to buy coal produced from a proposed West Virginia mine. The coal operator agreed to produce about 1.8 million tons per year -- and not less than 20 million tons total -- under terms of the contract.
James said the defendants produced about 480,000 tons of coal yearly.
International Coal Senior Vice President and General Counsel Roger Nicholson said in a statement Tuesday the company would pursue "post-verdict remedies" and appeal "if necessary."
"We ... believe that the court misinterpreted both the factual underpinnings of the case as well as the applicable law," Nicholson said.
