Justia West Virginia Supreme Court of Appeals Opinion Summaries

A 2007 stockholders’ derivative suit alleged that Massey’s officers and directors breached their fiduciary duties by failing to make sure that Massey employees were complying with environmental and mine worker safety laws and regulations. A 2008 settlement released the claims in exchange for certain reforms to be made a part of corporate governance policies relating to company oversight and conduct regarding environmental and mine worker safety standards. The reforms were incorporated into Massey’s written Corporate Governance Agreement and were to remain in effect for five years. On April 5, 2010, an explosion occurred at Massey’s Upper Big Branch Mine at Montcoal, West Virginia, killing 29 miners. According to a contempt petition, investigations subsequent to the disaster found systematic mine safety compliance failures leading up to the explosion. The trial court dismissed the civil contempt petition. The West Virginia Supreme Court affirmed. The petitioners lacked standing to pursue contempt proceedings because they no longer own any Massey stock; Massey has been purchased by Alpha Natural Resources; and the respondents were removed by Alpha as corporate directors and officers. View "Manville Pers. Injury Settlement Fund v. Blankenship" on Justia Law

In 1907, Florence conveyed her 1/7 interest in "the surface only" of a 225-acre tract of land to Walter, her brother, who was vested with an undivided 6/7 interest in the tract. The subject tract was subsequently conveyed several times. In 1967, Respondent purchased the interest in the 225-acre tract that was previously owned by Walter. Respondent asserted that he was the sole owner of all oil and gas rights under the tract. Petitioners, successors to Florence, contended that they owned a portion of the 1/7 interest in the oil and gas under the tract. The circuit court ruled in favor of Respondent after declaring that the term "surface only" was ambiguous and relying on contemporary testimony to interpret the deed. The Supreme Court reversed, holding (1) the term "surface," when used as a term of conveyance, is not presumptively ambiguous and does have a definite and certain meaning; (2) the deed clearly conveyed from Florence to Walter her share of "the surface only" to the tract and reserved to Florence the remainder of the tract, including the oil and gas underlying the tract; and (3) accordingly, Petitioners were owners of a portion of Florence's 1/7 interest in the minerals underlying the tract. View "Faith United Methodist Church & Cemetery of Terra Alta v. Morgan " on Justia Law

Petitioners and Respondents executed a land contract whereby Respondents agreed to sell a piece of property to Petitioners. After the land contract had been fully consummated, Respondents refused to tender a deed to Petitioners. Petitioners filed suit, seeking a delivery of a general warranty deed for the property, including all oil and gas rights. Two months later, Respondents tendered a deed to Petitioners reserving oil and gas rights. The deed was recorded on February 17, 2010. Petitioners moved for summary judgment, arguing that because the land contract did not contained any language indicating Respondents' intention to except oil and gas rights, any questions of interpretation should be resolved in favor of the grantees. The trial court granted summary judgment for Respondents, finding that when the deed was recorded, the land contract was merged in the deed and any cause of action based upon the contract was extinguished. The Supreme Court reversed, holding (1) the contract was unambiguous, and Respondents failed to establish any legally sufficient basis for varying its terms; and (2) therefore, Respondents were obligated to convey their title and interest to the property, including their vested oil and gas rights. Remanded for entry of summary judgment in favor of Petitioners. View "Spitznogle v. Durbin" on Justia Law

EQT Production Company was the lessee of an oil and gas lease. Matthew Hamblet was the surface owner of a parcel of property included within EQT's leasehold. EQT filed a permit application with the Office of Oil and Gas of the West Virginia EPA (DEP) for a shallow well targeting a Marcellus formation. The DEP issued the permit requested by EQT. Subsequently, Hamblet filed a petition for appeal of the issuance of the well permit in the circuit court. The DEP and EQT filed motions to dismiss the petition contending that Hamblet did not have the right to appeal the issuance of the permit. The circuit court denied the motions, concluding that Hamblet had the right to appeal the permit, but submitted its ruling to the Supreme Court. The Supreme Court held (1) upon consideration of the court of appeals' opinion in State ex rel. Lovejoy v. Callaghan and the relevant statutes, a surface owner is not permitted to seek judicial review of the DEP's issuance of a well work permit for a horizontal Marcellus well; and (2) given this fact, the Court had no basis to find Hamblet had a right to appeal the well work permitted issued by the DEP. View "Martin v. Hamblet" on Justia Law

Ruling on a joint petition for declaratory order filed by Monongahela Power Company and Potomac Edison Company ("The Utilities"), The Public Service Commission of West Virginia held that the alternative and renewable energy resource credits attributable to energy purchases by the Utilities from Morgantown Energy Associates (MEA) and the City of New Martinsville ("the Generators"), were owned by the Utilities during the terms of electric energy purchase agreements between the entities. On appeal, the Generators contended that the Commission erred in its ruling and that the energy resource credits were owned by them. The Supreme Court affirmed, holding (1) the Commission did not err in finding the credits at issue were owned by the Utilities; and (2) the Commission did not err in holding that it would deem MEA's Morgantown project as a certified facility under the Alternative and Renewable Energy Portfolio Act upon the submission of sufficient evidence by the Utilities. View "City of New Martinsville v. Pub. Serv. Comm'n " on Justia Law

Petitioner Jefferson Utilities, Inc. (JUI), a privately-held public utility authorized to provide water service to several areas of Jefferson County, filed a request with the Public Service Commission of West Virginia for a rate increase of approximately 72.2 percent. The ALJ recommended a rate increase of 22.4 percent, and the Commission reduced the rate increase recommended by the ALJ to 4.4 percent. JUI appealed, contending that the Commission erred by rejecting the recommended decision of the ALJ regarding the rate increase. The Supreme Court affirmed, holding that although the evidence in this case was controverted, it was clear that the Commission's decision was not arbitrary, did not result from a misapplication of legal principles, and was supported by substantial evidence in the record. View "Jefferson Utils., Inc. v. Pub. Serv. Comm'n of W. Va." on Justia Law

Petitioner power companies sought a writ of prohibition in connection with a ruling of the circuit court denying petitioners' motion to dismiss a breach of contract complaint filed against them by respondents, Shell Equipment and Shell Energy, as being barred by the statute of limitations. Petitioners argued that the trial court erred in ruling that the limitations period applicable to contracts for the sale of goods under the UCC does not apply to the coal sales agreement they entered into with Shell Equipment. The Supreme Court granted the writ of prohibition, finding that petitioners demonstrated clear legal error for which they were entitled to relief. The Court determined that the subject agreement constituted a sale of goods under W.V. Code 46-2-107(1), and, as a result, the four-year statute of limitations established by the UCC for the sales of goods was controlling. Because respondents did not initiate the lawsuit until after the limitations period had expired, the trial court committed error in failing to grant petitioners' motion to dismiss. View "SER Monongahela Power, et al. v. Circuit Court of Marion County, et al." on Justia Law