Today's decision marks the third time the state's highest court has overturned the 2002 jury verdict in a contract dispute between businessman Hugh Caperton and the Richmond, Va.-based Massey, which is identified in court documents as A.T. Massey Coal.

The latest decision was authored by Justice Robin Davis, who served as acting chief justice. In the opinion, she wrote that the contract dispute between Caperton's company, Harman Mining, and Massey occurred in Virginia and should not have been a West Virginia case. Justice Margaret Workman dissented and reserved the right to file a separate opinion.

In the original lawsuit, Caperton alleged Massey drove the Grundy, Va.-based Harman Mining out of business by buying up a middleman company that purchased Harman's coal and then switched that contract to Massey coal. Caperton sued Massey for breach of contract in a Virginia court in March 1998 and eventually received $6 million in damages. In October 1998, Caperton sued Massey for fraud in West Virginia court.

Harman Mining eventually filed for bankruptcy in 1998.

In 2002, a Boone County jury ordered Massey to pay Caperton $50 million in damages. Massey appealed the case to the West Virginia Supreme Court, which overturned the jury decision 3-2 in November 2007. The appeal was reheard in early 2008 after photos emerge of then-Chief Justice Elliott "Spike" Maynard and Massey CEO Don Blankenship on vacation together. Maynard was one of the three people who voted to overturn the Boone County decision.

Maynard recused himself from the second appeal. However Justice Brent Benjamin did not, despite requests from Caperton's attorney that he do so. Attorneys for Caperton alleged Benjamin could not be impartial because Blankenship contributed millions of dollars to a special interest group that actively campaigned against Benjamin's opponent in the 2004 election. Benjamin remained on the bench during the hearing and cast the deciding vote in the 3-2 decision to overturn the verdict.

Caperton appealed the case to the U.S. Supreme Court on the grounds that his rights were violated when Benjamin refused to recuse himself. The case was argued in Washington, D.C., in March, and in June, the High Court ruled 5-4 that Benjamin should have recused himself. The case was remanded back to West Virginia.

The state Supreme Court revisited the case this fall with retired Circuit Judge James Holliday sitting in for Benjamin.

Massey issued a statement following the Supreme Court's decision.

In the statement, Shane Harvey, Massey vice president and general counsel, said the company has "always stated that the West Virginia Supreme Court’s initial decision in favor of Massey was correct, the essential facts in this case have not changed, and no legal arguments were presented by our opponent that would have merited reversal."

"The Court’s decision represents a total vindication of Massey Energy’s longstanding legal position. We are pleased that this decision today brings this lengthy legal proceeding to an appropriate close,” Harvey said.