CHARLESTON, W.Va. - Massey Energy's lawsuit against its insurance company does not state that the company agreed to a $20 million settlement with the families of two miners killed in the January 2006 fire at the Aracoma Alma No. 1 Mine, Massey's general counsel said Wednesday.

Shane Harvey said the Massey suit "merely says that the case could have been settled within policy limits - that is, settled for $20 million or below."

"That number could be $20 million," Harvey said in an e-mail message. "It could also be $1. I cannot reveal the substance of the confidential settlement discussions to you."

Harvey criticized a Tuesday Charleston Gazette story on the insurance litigation for citing the $20 million figure, saying such articles "influence jurors and prevent fair trials."

Families of miners Don Bragg and Ellery Hatfield sued Aracoma Coal Co., parent companies A.T. Massey Coal Co. and Massey Energy, and Massey President Don Blankenship. They allege the companies and Blankenship put coal production ahead of safety, causing the Jan. 19, 2006, fire.

Opening arguments were held Monday and testimony began Wednesday in the trial before Logan Circuit Judge Roger L. Perry. The Bragg and Hatfield estates are seeking monetary damages both to compensate them for their loss and to punish the companies and Blankenship.

Two weeks before the trial, Aracoma filed suit in Logan Circuit Court against its insurance company, International Specialty Lines Insurance, which is part of American International Group, or AIG.

CHARLESTON, W.Va. - Massey Energy's lawsuit against its insurance company does not state that the company agreed to a $20 million settlement with the families of two miners killed in the January 2006 fire at the Aracoma Alma No. 1 Mine, Massey's general counsel said Wednesday.

Shane Harvey said the Massey suit "merely says that the case could have been settled within policy limits - that is, settled for $20 million or below."

"That number could be $20 million," Harvey said in an e-mail message. "It could also be $1. I cannot reveal the substance of the confidential settlement discussions to you."

Harvey criticized a Tuesday Charleston Gazette story on the insurance litigation for citing the $20 million figure, saying such articles "influence jurors and prevent fair trials."

Families of miners Don Bragg and Ellery Hatfield sued Aracoma Coal Co., parent companies A.T. Massey Coal Co. and Massey Energy, and Massey President Don Blankenship. They allege the companies and Blankenship put coal production ahead of safety, causing the Jan. 19, 2006, fire.

Opening arguments were held Monday and testimony began Wednesday in the trial before Logan Circuit Judge Roger L. Perry. The Bragg and Hatfield estates are seeking monetary damages both to compensate them for their loss and to punish the companies and Blankenship.

Two weeks before the trial, Aracoma filed suit in Logan Circuit Court against its insurance company, International Specialty Lines Insurance, which is part of American International Group, or AIG.

In the suit, Aracoma alleged that the Bragg and Hatfield families had offered to settle their case for an amount "within the applicable limits of coverage" under the company's $20 million stopgap policy.

Aracoma Coal Co., the suit said, had agreed to pay its $5 million deductible "toward the settlement of the claims."

But Aracoma alleged the insurance company "refused to effect a settlement" that would "result in a full and complete release of the insured, Aracoma, as well as all other defendants."

Instead, insurance company officials wanted the other defendants - Massey Energy, A.T. Massey Coal, and Blankenship - to pay "all or a portion" of their $10 million deductible under a separate general liability policy "before taking any further steps to resolve the claims against Aracoma."

Aracoma lawyers asked for a court judgment that the insurance company "cannot refuse to settle the claims against Aracoma ... within the $20 million limit" of the policy.

A ruling for Aracoma in the insurance case could later be used by the company to try to force its insurer to pay if the jury in the wrongful-death case awards the families more than the $20 million policy limit. In their complaint, Aracoma lawyers accused the insurer of a breach of contract that is "exposing Aracoma to a verdict in excess" of the $20 million policy limit.

At the same time, the outcome of an ongoing federal criminal probe could be used by the insurance company to try to avoid paying anything if Massey reaches a plea deal with prosecutors.

Reach Ken Ward Jr. at kw...@wvgazette.com or 348-1702.