The West Virginia Supreme Court yesterday overturned a $50 million judgment against Massey Energy for a third time. The 4-1 decision came after the U.S. Supreme Court had ordered the court to rehear the case without the judge who allegedly benefitted from campaign contributions made by Massey CEO Don Blankenship.

Yesterday's ruling overturns a 2002 jury verdict in favor of Hugh Caperton and his Harman Development of Beckley, W.Va., who sued Massey in 1998.

Mr. Caperton's Pittsburgh attorney, David Fawcett of Buchanan Ingersoll & Rooney, was disappointed the court threw out the lower court's verdict that Massey and Mr. Blankenship had "perpetuated frauds and wrongfully interfered with Harman's business."

"It is a shame that the remedy for these wrongs has been set aside," Mr. Fawcett said in a statement. "Hugh Caperton and his companies have demonstrated great courage throughout their attempt to secure justice."

Massey General Counsel Shane Harvey said the decision "represents a total vindication of Massey Energy's long-standing legal position." To read a statement from Massey, click here.

"The essential facts in this case have not changed, and no legal arguments were presented by our opponent that would have merited reversal," Mr. Harvey said in a statement.

After Massey appealed the 2002 verdict, West Virginia's highest court ruled in Massey's favor by 3-2 margins in opinions issued in November 2007 and April 2008. Mr. Caperton argued those decisions were tainted by Mr. Blankenship's close friendship with former State Supreme Court Justice Elliott "Spike" Maynard and the $3 million Mr. Blankenship spent on the 2004 campaign that resulted in the election of current Chief Justice Brent Benjamin.

Mr. Caperton appealed the April 2008 ruling to the U.S. Supreme Court. In June, the high court ruled, 5-4, that judges should step aside from cases involving campaign contributors when the size of the contributions creates the risk that the judge's impartiality could be questioned.

Justice Benjamin, who ruled in Massey's favor in the first two hearings, did not participate in the third hearing.

The majority of judges ruled that under a contract between Harman and a coal company later acquired by Massey, Mr. Caperton and Harman were required to bring their case in Virginia, not West Virginia.

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