Topic > Pittston Coal Company: Tort Law - 1251

On February 26, 1972, Dam 3 of the Buffalo Mining Company, a subsidiary of the Pittston Coal Company, failed causing the Buffalo Creek Hallow to flood. The disaster caused property damage, manslaughter and mental impairment. West Virginia prohibited the construction of any dam constructed over “fifteen feet in height across any stream or waterway without a prior determination by the State that it is safe” (15). The state's failure to adequately enforce this law gave Pittston the ability to claim that the disaster was an act of God; this was supported by President Nixon who called it a natural disaster (187). In his testimony Mr Spotte, head of the Pittston Coal Group, said the accident was a natural event outside the company's control. However, he admitted that this particular dam (3) was not built according to the company's custom, other dams without a spillway system. This failure to ensure a standard constituted a negligent breach of duty (134-137). Arnold & Porter chose to sue Pittston rather than the Buffalo Mining Company because the company's value afforded adequate compensation to the victims. The author and lead plaintiffs' attorney, Gerald M. Stern, writes that the original goal was to sue for $21 million for the disaster to have a material effect on the cooperation (51). To avoid liability Pittston attempted to prove that the Buffalo Mining Company was an independent corporation with its own board of directors. The plaintiffs' lawyers refuted this claim by arguing that the Buffalo Mining Company never held formal board meetings and was not independent of the parent company. During this case Pittston's Oil division had applied to build an oil refinery in Maine. On......middle paper...awarded by a jury, this motion was denied by the judge. Arnold & Porter ultimately lowered their desired deal from $21 million to $15 million, Pittston offered $13 million. The two parties reach a settlement for 13.5 million dollars, of which 8 million for mental disorders. In their defense Pittston attempted to distort the truth. They sought to separate from the Buffalo Coal Company, the subsidiary that operated the failed dam. Pittston had the capital needed to compensate the plaintiffs while the Buffalo Coal Company was not valued enough to give compensation to the victims. Arnold & Porter lawyers chose to sue the parent company because it was necessary to reach an adequate settlement. The plaintiffs used mental disability because it would give them maximum compensation and would offset the maximum amount allowed under state law..