THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, November 12, 1994            TAG: 9411120149
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   47 lines

FEDERAL JUDGE DISMISSES TWO LAWSUITS IN UTILITY FEUD

A federal judge has thrown out two class-action lawsuits filed against Dominion Resources Inc. by shareholders in reaction to the company's feud with its Virginia Power subsidiary.

U.S. District Judge James R. Spencer on Thursday dismissed both suits and refused to allow the shareholders to amend their allegations that Dominion Resources' officials violated federal securities laws and harmed investors.

Spencer's ruling took a swing at the shareholders and their lawyers.

``As a reminder to any would-be hawks who make their livelihood by circling high over the corporate plains waiting for signs of trouble, this court notes that it will not tolerate being used as a forum for the feeding frenzy of opportunistic shareholders and their lawyers,'' he wrote at the end of his 19-page opinion.

Jay Levit, a Richmond lawyer who represented three of the shareholders, called Spencer's concluding remarks unfortunate. ``I find it a disappointing statement because it doesn't really go to the merits of the case,'' he said.

Levit's law firm was one of four representing Isobel Weill, Bruce I. Longman Profit Sharing & Retirement Trust and Frank J. Balint Sr.

The shareholders sued Dominion Resources and its chairman, Thomas E. Capps, on Aug. 1, about six weeks after state regulators began investigating the power struggle between Capps and Virginia Power officials. The feud was settled Aug. 12 with an agreement to restructure the companies' boards of directors and leadership, but the State Corporation Commission is continuing its investigation.

Before the settlement, another shareholder suit was filed by Frank Gregory, a Florida investor.

Spencer consolidated the two class-action suits and ruled that the four shareholders had failed to prove Dominion Resources deliberately misled investors by withholding information.

The judge also said the shareholders had not proven any violation of federal securities law.

KEYWORDS: DOMINION RESOURCES INC. VIRGINIA POWER

by CNB