Richard Forlani Neely

The case concerned claims by the State of West Virginia against Morgan Stanley & Co. arising from the state's active trading of government securities through its Consolidated Fund investment pool in the mid-1980s, which resulted in substantial losses during a 1987 market downturn; the state had obtained a $52 million summary judgment and a $4.9 million jury verdict for constructive fraud. The court held that neither the summary judgment nor the fraud verdict was proper and reversed both. The opinion reviewed the history of the fund's management, changes in investment guidelines, the state's direct dealings with securities dealers including Morgan Stanley, and principles governing damages in tort actions involving alleged fraud or trespass, concluding that the legal standards for liability and damages had not been met.

business & regulatorytorts & liability

The case involved the City of Morgantown seeking to impose its Business and Occupation tax on the West Virginia University Medical Corporation, arguing that the corporation's primary purpose was billing and collecting fees rather than charitable activities. The Supreme Court of Appeals of West Virginia affirmed the lower court's decision that WVUMC is exempt from the tax as a charitable organization. The court reasoned that WVUMC is a non-profit entity organized exclusively for charitable, scientific, and educational purposes, supports the university's medical school mission, provides substantial uncompensated care without regard to patients' ability to pay, and does not distribute earnings to private individuals, consistent with exemptions under state tax statutes.

taxesbusiness & regulatoryhealthcare

The case involved Eleanor Chambers' conviction for first-degree arson after her home burned, with the prosecution presenting evidence that she was offered but declined a polygraph test. The West Virginia Supreme Court reversed the conviction, holding that references to a defendant's offer or refusal to take a polygraph are inadmissible in criminal trials. The court reasoned that such evidence creates the same unreliable and prejudicial inferences about guilt or innocence as actual polygraph results, which are already barred under state precedent like State v. Frazier. It found the admission to be plain error, even without objection, and remanded the case.

criminal lawprocedure

Samuel Martin Moore was convicted in Wood County Circuit Court of first-degree sexual abuse and burglary after breaking into a home at night, attempting sexual contact with a child, and stealing money and other items. He appealed on multiple grounds, including that his competency evaluation was improperly conducted by only one psychologist rather than the required professionals, that his confession was inadmissible due to his mild mental retardation and possible intoxication, and that the evidence was insufficient without the confession to prove intent. The Supreme Court of Appeals of West Virginia affirmed the convictions, ruling that the trial court committed no reversible error because the competency statute was satisfied or the issue was not properly preserved, Moore knowingly waived his Miranda rights without coercion, and the confession plus other evidence supported the jury's findings.

criminal lawprocedure

This case involved a mandamus action by West Virginia state troopers challenging 1994 amendments to the public safety pension system that raised employee contribution rates from 6% to 9%, eliminated credit for unused sick and annual leave toward retirement eligibility, and lowered the annual cost-of-living annuity adjustment from 3.75% to 2%. The Supreme Court of Appeals of West Virginia held that these changes unconstitutionally impaired the troopers' contract rights under Article III, Section 4 of the state constitution once employees had relied on the prior plan terms through years of service. The court reasoned that public employees' pension expectations become protected after detrimental reliance and partial performance of their employment obligations, preventing unilateral reductions by the legislature without employee consent or actuarial buyouts in early career stages. Accordingly, the court granted the writ to the extent the amendments violated these principles.

labor & employment

This case involved recreational users of Kumbrabow State Forest challenging a proposed timber sale by the West Virginia Division of Forestry to Coastal Lumber, Inc., on 162 acres. The plaintiffs argued that the Division needed approval from the Public Lands Corporation under W.Va. Code 20-1A-3(4) before selling timber and that the sale violated the Division's statutory mandate to manage forests for multiple uses. The circuit court dismissed the petition for injunctive and declaratory relief and dissolved a temporary injunction, and the Supreme Court of Appeals affirmed. The court held that W.Va. Code 20-1-7(13) and 19-1A-1 et seq. unambiguously authorize the Division to sell timber with the Governor's written approval, without requiring Public Lands Corporation approval, as the transaction was forest management rather than a land consolidation or transfer. The court further found that the selective-cut plan, which targeted diseased trees and preserved most of the forest, complied with the multiple-use mandate, supported by evidence from forestry experts and other agencies.

environmentpropertybusiness & regulatory