State ex rel. Bluestone Coal Corp. v. Mazzone

697 S.E.2d 740, 226 W. Va. 148, 2010 W. Va. LEXIS 85
CourtWest Virginia Supreme Court
DecidedJune 23, 2010
DocketNo. 35516
StatusPublished
Cited by35 cases

This text of 697 S.E.2d 740 (State ex rel. Bluestone Coal Corp. v. Mazzone) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Bluestone Coal Corp. v. Mazzone, 697 S.E.2d 740, 226 W. Va. 148, 2010 W. Va. LEXIS 85 (W. Va. 2010).

Opinion

DAVIS, Chief Justice:

The petitioners herein, Bluestone Coal Corporation (hereinafter “Bluestone Coal”) and Bluestone Coal Sales Corporation (hereinafter “Bluestone Coal Sales”),1 request this Court to issue a writ of prohibition to prevent the Circuit Court of Ohio County from enforcing its November 20, 2009, order. By that order, the circuit court denied the Blue-stone companies’ motion to disqualify Buchanan Ingersoll & Rooney LLP (hereinafter “Buchanan Ingersoll”) as counsel for Mountain State Carbon, LLC (hereinafter “Mountain State”), which company is the opposing party in the underlying litigation and a respondent to the instant original jurisdiction proceeding. Before this Court, the Blue-stone companies contend that Mountain State’s counsel should be disqualified from representing Mountain State in the underlying proceedings because such continued representation violates Rules 1.7(a), 1.7(b), 1.9, and 1.10 of the West Virginia Rules of Professional Conduct. Upon the record before us, the parties’ arguments, and the pertinent authorities, we grant the requested writ of prohibition. Accordingly, we conclude that the law firm of Buchanan Ingersoll & Rooney LLP is disqualified and barred from representing Mountain State Carbon, LLC, adverse to the interests of Bluestone Coal Corporation or Bluestone Coal Sales Corporation in the underlying litigation in Civil Action No. 08-C-360 (AR) in the Circuit Court of Ohio County, West Virginia.

I.

FACTUAL AND PROCEDURAL HISTORY

A brief review of the nature of the parties and their relationship to one another is instructive to appreciate the context of the instant proceeding. Bluestone Coal and Bluestone Coal Sales, the petitioners herein, are companies engaged in the production and sale of coal. Both Bluestone companies are part of a conglomerate of twenty-nine affiliated closely-held companies owned and operated by James C. Justice, II (hereinafter “Mr. Justice”).2 These affiliated companies share one common General Counsel, Mr. Stephen W. Ball (hereinafter “Mr. Ball”), and the majority of these companies, including the two Bluestone companies involved in this case, are headquartered in the same office building in Beckley, West Virginia.

Mountain State, one of the respondents herein, owns and operates a coke plant in Follansbee, West Virginia, and purchases coal to convert into coke; Mountain State’s [153]*153principal place of business is in Wheeling, West Virginia. On October 5, 2007, Mountain State and Bluestone Coal Sales entered into a coal supply agreement whereby Blue-stone Coal Sales agreed to supply all of the coal required by Mountain State’s Follansbee coke operations. Bluestone Coal served as the guarantor for Bluestone Coal Sales’ obligations under this agreement. When Blue-stone Coal Sales failed to deliver the requisite amount of coal in accordance with the agreement’s terms, Mountain State filed suit against both Bluestone Coal Sales and Blue-stone Coal in the Circuit Court of Ohio County on September 9, 2008.

The law firm representing Mountain State in the underlying litigation, whose disqualification the Bluestone companies seek, is Buchanan Ingersoll. Buchanan Ingersoll is a large, nationwide, law firm, whose principal place of business is in Pittsburgh, Pennsylvania. At various times, Buchanan Ingersoll has been retained as counsel for certain of Mr. Justice’s companies, including Dynamic Energy, Inc.; Harlan Development Corporation; James C. Justice Companies LLC; and Sequoia Energy, LLC, for which representations engagement letters were signed. Buchanan Ingersoll also has either directly represented or provided legal counsel to both Bluestone Coal and Bluestone Coal Sales; however, the exact nature of the relationship between Buchanan Ingersoll and the Blue-stone companies, as well as whether there currently exists an attorney-client relationship between these entities, is disputed by the parties and will be discussed in further detail in Section III.B. of this opinion. See Section III.B., infra. It appears that Buchanan Ingersoll began providing legal services for both Mountain State and Mr. Justice’s companies in approximately 2005.

Following Buchanan Ingersoll’s institution of Mountain State’s Ohio County lawsuit, the Bluestone companies moved the circuit court to disqualify Buchanan Ingersoll from continuing its representation of Mountain State. In support of their motion, the Bluestone companies variously contended that they were current clients of Buchanan Ingersoll such that continued representation of Mountain State in an adverse capacity would violate Rule 1.7 of the West Virginia Rules of Professional Conduct; that they were former clients of the law firm such that continued representation would violate Rule 1.9; and that, because certain, individual attorneys had formerly represented the Bluestone companies, their disqualification should be imputed to the entire law firm in accordance with Rule 1.10. By order entered November 20, 2009, the circuit court denied the Bluestone companies’ motion to disqualify Buchanan Ingersoll, ruling that “no disqualifying conflict exists with respect to Buchanan Ingersoll & Rooney, LLP’s representation of Mountain State Carbon, LLC, Plaintiff, in this action.”

From this adverse ruling, the Bluestone companies now seek relief in prohibition from this Court.

II.

STANDARD FOR ISSUANCE OF WRIT

The Bluestone companies invoke this Court’s original jurisdiction and request this Court to issue a writ of prohibition to prevent the circuit court from enforcing its order denying their motion to disqualify Mountain State’s counsel in the underlying proceedings. First, we will consider the propriety of utilizing a writ of prohibition to challenge a lower court’s ruling on a motion to disqualify. We then will consider the standard by which this Court determines whether a writ of prohibition should issue.

A. Propriety of Writ of Prohibition for Disqualification Motion

This Court frequently has observed that “a party aggrieved by a trial court’s decision on a motion to disqualify may properly challenge the trial court’s decision by way of a petition for a writ of prohibition.” State ex rel. Ogden Newspapers, Inc. v. Wilkes, 198 W.Va. 587, 589, 482 S.E.2d 204, 206 (1996) (per curiam) (citations omitted) (hereinafter referred to as “Ogden I ”). See also State ex rel. Jefferson County Bd. of Zoning Appeals v. Wilkes, 221 W.Va. 432, 655 S.E.2d 178 (2007) (granting writ of prohibition in relation to order denying disqualification motion); State ex rel. Blackhawk Enters., Inc. v. Bloom, 219 W.Va. 333, 337, 633 S.E.2d 278, 282 (2006) (per curiam) (“When considering [154]*154the issuance of a writ of prohibition arising from a circuit court’s ruling on a motion for disqualification, this Court has consistently found the same to be an appropriate method of challenge.” (citations omitted)); State ex rel. Blake v. Hatcher, 218 W.Va. 407, 412, 624 S.E.2d 844, 849 (2005) (same); State ex rel. Youngblood v. Sanders, 212 W.Va. 885, 889, 575 S.E.2d 864, 868 (2002) (“With regard to the specific use of writs of prohibition in connection with disqualification motions, we [have] recognized ...

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Bluebook (online)
697 S.E.2d 740, 226 W. Va. 148, 2010 W. Va. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-bluestone-coal-corp-v-mazzone-wva-2010.