RADNOR, PA — A West Virginia jury awarded $16 million in damages and prejudgment interest to Big Huff Minerals LLC, a wholly owned subsidiary of Pardee Resources Co. (OTC: PDER), and its coal lessee in a dispute with a utility company over transmission towers placed on mining property, the company announced Friday.
The verdict stems from a dispute involving a utility easement for transmission lines and towers located on Big Huff’s property. The jury awarded damages for the value of coal beneath the towers that could not be mined because of their presence.
The court previously ruled that the coal lessee would incur $58 million in additional costs to mine around the transmission towers and that the amount would be awarded if the plaintiffs prevailed at trial.
The plaintiffs plan to seek a judgment totaling $74 million, representing the $16 million jury award plus the $58 million in additional mining costs. They also intend to request prejudgment interest on the added costs, which the company said could add approximately $10 million to the total.
Pardee Resources said its share of any total judgment would be approximately 33%.
The company said it expects the utility company to seek to overturn the verdict and may pursue an appeal, a process that could take years.
While management believes the judgment will be upheld, the company noted that legal proceedings are uncertain and that it may not ultimately collect the full amount awarded.
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