A West Virginia federal jury has ordered two Chubb insurers to pay $30 million to a coal mining company after finding that the insurers mishandled its claim following the collapse of a silo hopper.

The verdict awards Ramaco Resources LLC $2.5 million for corporate aggravation and inconvenience and another $27.5 million for net economic losses that the jury attributed to delays in resolving the insurance claim.

The case, which has stretched across years of litigation, centers on a 2018 coal silo collapse and a coverage dispute that moved from state court to federal court before reaching multiple rounds of trial and appeals.

Jury Awards $30 Million Over Delayed Insurance Claim

The jury found that Ramaco was entitled to $2.5 million for the disruption and inconvenience caused by the insurers' handling of its claim. It awarded an additional $27.5 million for economic losses linked to the delay.

U.S. District Judge Joseph R. Goodwin subsequently entered judgment confirming the damages award under West Virginia's Hayseeds doctrine.

The doctrine allows policyholders who substantially prevail against their insurers to recover consequential damages stemming from the dispute.

The latest verdict represents another major turn in a legal battle that began after a coal silo collapsed at Ramaco's mining complex in Logan County, West Virginia, in November 2018.

Insurers Initially Rejected Coverage

Federal Insurance Co., which insured Ramaco under an all-risks policy, denied coverage after determining that corrosion had caused the silo collapse. Corrosion was excluded under the policy, according to court filings.

Ramaco challenged that position in August 2019, filing suit against Federal in West Virginia state court.

The company sought reimbursement for costs associated with demolishing the damaged silo as well as losses stemming from the collapse. Its lawsuit also alleged breach of contract, bad faith and violations of West Virginia's Unfair Trade Practices Act.

The case was later moved to federal court. Ramaco subsequently amended its complaint to add Ace American Insurance Co., which had participated in adjusting the company's claim.

First Trial Produced a $7.6 Million Award

The dispute reached a two-week trial, where a jury in July 2021 determined that corrosion or deterioration had not caused the silo collapse.

The jury concluded that the insurers owed Ramaco $7.6 million in contract damages and prejudgment interest. It also awarded the company $25 million in Hayseeds damages.

But the victory did not remain intact.

Following the trial, the district court reduced the contract damages and interest award to $1.8 million. It also eliminated the Hayseeds damages entirely and ordered a new trial on that portion of the case.

The litigation then moved to the Fourth Circuit, setting up another pivotal chapter.

Appeals Court Sends Damages Dispute Back

In July 2023, the Fourth Circuit ruled that the district court had improperly reduced Ramaco's contract damages.

The appeals panel determined that the insurance policy language and evidence presented at trial supported the jury's original award.

The Fourth Circuit also rejected the lower court's complete dismissal of the Hayseeds damages claim. However, it concluded that a new trial was necessary because the original amount awarded by the jury was punitive in nature.

The case returned to the district court, where the scope of the retrial was narrowed.

New Trial Focused on Insurer's Delay

Court filings show that the retrial focused on the economic losses Ramaco allegedly suffered because of Federal's delay between the original July 15, 2021, jury verdict and the date the insurer finally paid the contract damages on Oct. 2, 2023.

The time period for aggravation and inconvenience damages was broader. Those damages covered the period beginning Nov. 12, 2018, when the claims process started, through Federal's Oct. 2, 2023, payment.

That distinction ultimately became central to the jury's latest $30 million award.

Ramaco Calls Verdict a Recognition of Harm

Ramaco Chair and CEO Randall Atkins said Monday that the company was grateful for the jury's consideration of the evidence.

"Ramaco is grateful to the jury for its careful consideration of the facts and for delivering a just verdict," Atkins said in a company statement, adding that the award recognized the harm caused by what Ramaco characterized as the insurers' wrongful delay in paying a legitimate claim filed in 2019.

The statement also said the court will determine the amount of attorney fees owed.

Representatives for the parties did not immediately respond Monday to requests for comment.

Ramaco is represented by Philip J. Combs, Daniel R. Higginbotham, Sherrie Armstrong Davis and Emily L. Ford of Thomas Combs & Spann PLLC.

The latest verdict closes another chapter in a case that began with a collapsed coal silo but grew into a much larger fight over insurance coverage, delayed payments and the financial consequences of a prolonged claims dispute.