May 25, 2008
Plaintiffs celebrate royalty ruling
Oil, gas companies vow to appeal to U.S. Supreme Court
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The daughter of the lead plaintiff in a landmark lawsuit against West Virginia's natural gas industry said Thursday's decision by the state Supreme Court to deny an appeal request gives "royalty holders their just due."

Lee Anne Tawney Goff said that this is the end of the road for the nearly 9,000 plaintiffs involved in a $405 million class- action lawsuit.

Goff is the daughter of Garrison Tawney, a retired Roane County teacher who started the suit. Tawney died in 2005 at the age of 90. 

"He would be really thrilled," Goff said of her father. "Royalty holders, common ordinary citizens, expect to be treated fairly. It's a shame we have to go to court for that to happen."

On Thursday, the state Supreme Court voted 5-0 to deny a request for an appeal from NiSource and Chesapeake Energy. Their action upholds two jury verdicts that required the natural gas companies to pay $405 million to plaintiffs, including $134 million in unpaid gas royalties. 

The jury verdict also imposed $271 million in punitive damages to be paid to the plaintiffs, which include thousands of landowners, 150 businesses and major land companies such as Dingess-Rum Properties, Cotiga Land Co. and Horse Creek Coal Land Co.

NiSource and Chesapeake Energy say they plan to appeal to the U.S. Supreme Court because their constitutional rights were violated. But a state constitutional scholar says it's unlikely they will succeed.

Goff also is confident the verdict will stand.

"With a five to zero verdict by the Supreme Court to overthrow the appeal, I don't see how they have a chance at the U.S. Supreme Court level but they have the right to do it," Goff said.

NiSource, based in Merriville, Ind., released a statement Friday that it will petition the U.S. Supreme Court to hear its appeal within 90 to 120 days. The company expects the court to decide whether to hear the appeal early next year.

Specifically, NiSource complained in a news release about "the manner in which the trial was conducted, particularly with respect to the punitive damages award."

The U.S. Supreme Court has overturned a case where punitive damages are considered too high, according to Bob Bastress, who teaches constitutional law at West Virginia University.

But in that case, the punitive damages were more than nine times the economic damages, he said.

The punitive damages in the Roane County verdict are a little more than twice the other damages.

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Posted By: nuttincowboy (9:44am 05-25-2008)
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Sounds like another case of,"my lawyers are bigger than your lawyers." A thief by any other name is a lawyer and these spoiled children are going to sit on their stolen toys until the rightful owners die. Isn't America a great country?

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