Ramaco Resources has won a $30 million federal jury verdict in its long-running insurance coverage dispute with subsidiaries of Chubb, resolving damages arising from a 2018 coal silo collapse at the company’s Elk Creek preparation plant in West Virginia.
The jury awarded Ramaco Resources LLC $2.5 million for aggravation and inconvenience and $27.5 million for net economic loss, according to a Sept. 28 filing with the U.S. Securities and Exchange Commission. The U.S. District Court for the Southern District of West Virginia entered judgment in Ramaco’s favor on Sept. 25, while attorney fees remain to be determined by the court.
The dispute stems from the partial structural failure of a raw coal storage silo at Elk Creek in November 2018. Ramaco filed an insurance claim after the incident, but Federal Insurance Company and ACE American Insurance Company denied coverage. Ramaco subsequently sued the insurers, seeking coverage for losses associated with the disruption.
The litigation has been active for several years and has already produced multiple court rulings. In the original 2021 trial, a jury found in Ramaco’s favor on coverage and awarded approximately $7.6 million in contract damages and prejudgment interest, along with $25 million in damages under West Virginia’s Hayseeds doctrine. The district court later reduced the contract award and rejected the Hayseeds damages.
The U.S. Court of Appeals for the Fourth Circuit reversed part of that decision in 2023, reinstating the jury’s $7.6 million contract damages and prejudgment interest award while holding that Ramaco was entitled to Hayseeds damages but that a new trial was required to determine the appropriate amount. The appellate court said the original $25 million Hayseeds award could not stand because it was punitive in nature.
The September 2026 verdict represents the result of that subsequent damages proceeding. The $27.5 million net economic loss award and $2.5 million aggravation and inconvenience award together account for the $30 million judgment announced by Ramaco. Attorney fees are a separate component under the applicable West Virginia law and will be calculated by the court rather than the jury.
The judgment does not necessarily end the litigation. Ramaco said the defendants may file post-trial motions within 28 days of the judgment’s entry and have 30 days from the entry of the final judgment to file a notice of appeal. The company also cautioned that the verdict could be reduced or set aside through post-trial proceedings or an appeal.
The potential financial benefit to Ramaco therefore remains subject to further legal proceedings and collection. The company specifically identified the outcome of any appeals, the defendants’ ability to satisfy the judgment and the court’s determination of attorney fees as factors affecting the eventual recovery.
The case involves a significant operational disruption in Ramaco’s history. The silo failure damaged infrastructure at the Elk Creek preparation plant and temporarily reduced processing capacity, while the company worked to restore operations. Ramaco ultimately completed a permanent bypass system that allowed the preparation plant to return to full processing capacity.
The latest judgment is separate from Ramaco’s ongoing coal mining operations and does not represent revenue from the sale of coal. Instead, any eventual recovery would arise from the insurance litigation and would relate to losses and damages associated with the 2018 incident.
Ramaco operates metallurgical coal mining complexes in Central Appalachia and is also developing its Brook Mine project in Wyoming, where it is exploring coal, rare earth elements and other critical minerals. The company said the insurance case remains subject to the remaining judicial process despite the $30 million judgment entered in its favor.
