STATE TRYING TO COLLECT COMPENSATION MONEY FROM COAL COMPANIES

(03/31/2004)

West Virginia's workers' compensation program will continue with lawsuits against seven coal companies that have failed to pay their premiums. The companies are expected to fight making their payments, mostly based on claims they contracted or outsourced the labor and were not responsible for making payments to the system. At the same time, their workers used the state system, which is now broke. Workers' Comp Executive Director Greg Burton says the Wise Administration settled similar lawsuits out-of-court with a number of companies three years ago, with the state collecting $50 million. Most of the claims, about $400 million, had been dismissed during Cecil Underwood's administration. Burton says the state was unable to settle with the remaining seven companies. The companies are now saying the debt is outdated. The coal companies will likely appeal to the state Supreme Court.

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