Bayer in "Jaw Dropping" Fight Over Its Coal Bill

(MoneyWatch)  Bayer (BAY.DE)'s Virginia unit -- which mostly makes pesticides -- is at the center of multimillion dollar battle over coal. Massey Energy (MEE), the coal giant that treats Appalachia like a used napkin, claims Bayer owes it $39 million for shipments of coal it hasn't paid for; Bayer claims that Massey owes it $10 million.

• Download Massey v. Bayer here.

Massey sued Bayer in 2008 claiming it was $1.48 million in arrears on its coal bill. Bayer claimed it had two email agreements with Massey setting the price of coal at $54 a ton. But Massey said those emails were not in standard contract form and therefore should be ignored. By then the price of Massey's coal had risen to $160 per ton.

Since then, the dispute has become emotional. AmLaw Litigation Daily:

Robert Luskin, a partner at Patton Boggs who represents the West Virginia coal company told the NLJ ... that the dispute was "jaw-dropping" in its ugliness.

The fight has left court following a consent ruling that neither of Bayer's email contracts is valid. The companies are now in arbitration.

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