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July 27, 2005
Blankenship Sues Manchin Over Pension Bond Amendment Allegations
by Grant Traylor
Huntington News Network Writer
Charleston, WV (HNN) — The chief executive officer of Massey Energy filed a
federal court lawsuit against Gov. Joe Manchin on Tuesday, July 26, 2005 in
Charleston.
The lawsuit alleges that Manchin violated Massey Energy CEO Don
Blankenship's rights of free speech when he threatened to retaliate for
Blankenship's opposition to the pension bond constitutional amendment.
The lawsuit, filed in a United States District Court office in Charleston,
goes after Manchin as an individual and as governor of West Virginia.
According to the lawsuit, Blankenship is seeking declamatory relief,
injunctive relief and damages.
Blankenship alleges that Manchin abused his position as governor to see that
law enforcement kept a closer watch on Massey Energy because Blankenship
publicly scrutinized the pension bond proposal.
The proposal would have allowed Manchin to sell $5.5 billion in bonds to
help fix the state's pension problems. The money made from bonds would have
been reinvested to try and patch up the lack of pension funds.
West Virginia voters rejected the proposal on June 25, 2005 by a vote of 54
percent to 46 percent.
Each party sees the other as trying to use financial or governmental powers
for their own personal gain.
Blankenship is also upset because state officials canceled a permit for a
new coal silo near Marsh Fork Elementary in Raleigh County.
Now, state officials want Massey Energy to start demolition on the site, a
pricey demand that sent Blankenship's lawsuit into full swing.
While Blankenship thinks that Manchin is telling state officials to crack
down on Massey Energy because of the campaign directly against the bond
proposal, Manchin thinks that the Massey CEO is using his financial
fortitude for the same purpose.
In June, Manchin even went as far to say that Blankenship should expect
tougher scrutiny for the negative campaign against Manchin's proposal.
Manchin defended the comments when asked about them.
"I think that is justified now, since Don has jumped in there with his
personal wealth trying to direct public policy," Manchin told the Associated
Press.
The situation places two West Virginia juggernauts against each other in a
head-to-head battle.
Manchin is the head of the state and the single-handed most influential
person in West Virginia.
However, Blankenship is not very far behind as Massey Energy is the leading
coal producer in West Virginia, although the business is based in Richmond,
Va.
The Massey CEO is asking the court to prevent prejudicial acts or
regulations against Massey Energy and for Manchin's admission that he
violated Blankenship's rights of free speech.
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