KBR: Feds Should Pay Lawsuit Damages

Associated Press at ABC News  November 28, 2012

An Iraq war contractor that lost an $85 million verdict to a group of sickened Oregon soldiers has filed a lawsuit seeking to force the federal government to pay the soldiers’ damages.

In early November, 12 Oregon National Guard soldiers won the verdict against Kellogg Brown and Root, an engineering and construction firm that helped lead the reconstruction work in post-war Iraq. The soldiers were exposed to a toxin while guarding an Iraqi water plant.

In the new lawsuit, KBR also demands that the government pay more than $15 million in its attorneys’ fees.

At the heart of the suit is a so-called indemnification clause that KBR alleges it agreed to with the U.S. Army Corps of Engineers in March 2003. The clause was designed to protect KBR against “unusually hazardous risks” in its work in Iraq.

In a Nov. 16 filing in the U.S. Court of Federal Claims, KBR argues the clause makes the government responsible for the results of its actions in Iraq, including the Oregon verdict.

“Based upon an erroneous legal and factual analysis of the terms of the indemnification agreement, (the Army Corps) has refused to indemnify (KBR) for the costs of defending against the various third-party lawsuits,” KBR attorneys wrote, “and has refused to participate or assume direct responsibility in defending (KBR) in the underlying tort litigations.”

KBR said in the suit that it had no insurance to cover its wartime work, and the government’s refusal to involve itself in lawsuits constitutes a breach of the indemnification agreement.

Please read the entire article here

US sues contractors over troop trailers in Iraq

Associated Press at The Blaze  November 20, 2012

The U.S. government has filed a civil lawsuit accusing a Houston-based global construction company and its Kuwaiti subcontractor of submitting nearly $50 million in inflated claims to install live-in trailers for troops during the Iraq War.

The lawsuit names KBR Inc. and First Kuwaiti Trading Co., alleging they overcharged for truck, driver and crane costs, and misrepresented delays in providing around 2,250 trailers meant to replace tents used by soldiers earlier in the invasion.

In one instance, the contractors allegedly claimed they paid $23,000 to lease one crane per month when the actual price was about $8,000, according to the lawsuit, which was filed this week in U.S. District Court in Rock Island, Ill., and first appeared in federal court records Tuesday.

KBR, once the engineering and construction arm of Halliburton, has faced lawsuits before related to its work in Iraq. One of the most prominent involved a soldier electrocuted in his barracks shower at an Army base. That case was eventually dismissed.

In the case involving the trailers, Jim Lewis, the U.S. Attorney for the Central District of Illinois, said “KBR and First Kuwaiti did not provide an honest accounting.”

Stuart Delery, a U.S. deputy assistant attorney general, said in a Department of Justice statement regarding the lawsuit that contractors “are not permitted to profit at the expense of the taxpayers at home who are supporting our men and women in uniform.”

$85 million awarded to 12 Oregon soldiers; KBR guilty of negligence, not fraud

Oregon Live  November 2, 1012

Oregon National Guard soldiers

A Portland jury found defense contractor KBR Inc. was negligent, but did not commit fraud against a dozen Oregon Army National Guard soldiers who sued the company for its conduct in Iraq nine years ago. Magistrate Judge Paul Papak announced the decision about 3:35 p.m. the U.S. Courthouse in Portland. Each soldier was awarded $850,000 in non-economic damages and $6.25 million in punitive damages.

“It’s a little bit of justice,” said Guard veteran Jason Arnold, moments after the verdict was announced Friday afternoon. Arnold was one of four of the soldier-plaintiffs in the courtroom was the verdict was read.

The verdict should send an important message to those who rely on military troops, he said.

“We’re not disposable,” said another soldier, Aaron St. Clair. “People are not going to make money from our blood.”

KBR’s lead attorney, Geoffrey Harrison, said the company will appeal.

“We will appeal the jury’s incorrect verdict,” he said. “We believe the trial court should have dismissed the case before the trial.”

Harrison said the soldiers’ lawyers produced a medical expert, Dr. Arch Carson, who offered “unsupported, untested medical opinions” that each soldier had suffered invisible, cellular-level injuries as a result of their exposure to hexavalent chromium.

The verdict means the jury did not hear clear and convincing evidence that KBR intended to deceive the soldiers in the way it operated at the Qarmat Ali water treatment plant, near Basra, Iraq. But they did find that the company failed to meet its obligations in managing the work at the plant.

Friday’s verdict closes the first phase of a web of litigation between National Guard and British troops against KBR Inc., the defense contractor they accuse of knowingly exposing them in 2003 to a carcinogen at Qarmat Ali. KBR has denied the accusations.

In Oregon another set of Oregon soldiers are waiting in the wings for their day in court. Magistrate Judge Paul Papak and the attorneys agreed earlier to hold an initial trial with the first 12 soldiers, in order to keep the proceedings from becoming too unwieldy. A second trial, featuring all or some of the remaining 21 plaintiffs, could begin in federal court in Portland this winter.

Another lawsuit brought by Indiana soldiers against KBR is on hold in federal court in Texas, while an appeals court considers a jurisdictional issue.

The cases stem from the chaotic aftermath of the U.S.-led invasion of Iraq in March 2003. The Army Corps of Engineers hired KBR Inc. to run a massive program called Restore Iraqi Oil. The program involved dozens of sites throughout Iraq — sites that neither the Army nor KBR had visited before the invasion. The project was intended to quickly restore the flow of Iraq’s oil, partly to fund the war. The Pentagon remembered the way Saddam Hussein had lit the fields on fire during the first Gulf War, and feared a repeat in 2003.

Qarmat Ali was a compound where water was pumped underground to drive oil to the surface elsewhere. For decades, Iraqis had treated the water with sodium dichromate, an anticorrosion agent that contains hexavalent chromium, a known carcinogen. (Sodium dichromate is banned in the United States.)

Iraq’s Southern Oil Co. took delivery of sodium dichromate, an orange-yellow crystalline powder, in bags that were stored on site. Soldiers and others testified that the material was loose and drifting around the site, and had contaminated areas even outside the chemical injection building where it was added to the water.

How contaminated was it? Accounts differ. Even one of the plaintiffs in this case said he didn’t notice any soil discoloration. One of the British soldiers whose testimony was prerecorded said it was everywhere. Another Oregon soldier said it settled heavily on the clothing of the soldiers, who unwittingly carried it back to their camps over the border in Kuwait.

Much of KBR’s defense in the first Oregon trial focused on just how unlikely it was that any soldier — who visited the plant at durations from one day to 21 days — could have been exposed to dangerously high levels of sodium dichromate. But one of the most gripping portions of the testimony was when Oregon veteran Larry Roberta described eating a chicken patty that had been coated with the orange crystals, which he said immediately burned in his esophagus, causing him to vomit.

Roberta now is confined to a wheelchair and takes oxygen from a tank in his backpack. He had a history of gastrointestinal issues, but attributes much of his poor health to his time at Qarmat Ali.

Harrison, KBR’s lawyer, said the company “believes in the judicial process and respects the efforts and time of the jurors,” but believes the process that brought the case to conclusion Friday shouldn’t have been allowed to come so far.

“KBR did safe and exceptional work in Iraq under difficult circumstances,” he said in a brief, prepared statement. “We believe the facts and law ultimately will provide vindication.”

Soldier-plaintiff Arnold said the message of the verdict is unmistakable. He said service members are being exploited “to this day.”

Now, he said, “the voice will be out. There will be a lot more scrutiny.”

Iraq convoy was sent out despite threat

Unarmored trucks carrying needed supplies were ambushed, leaving six drivers dead. Records illuminate the fateful decision.

“Can anyone explain to me why we put civilians in the middle of known ambush sites?”

“Maybe we should put body bags on the packing list for our drivers.”

T Christian Miller The LA Times  September 3, 2007

Senior managers for defense contractor KBR overruled calls to halt supply operations in Iraq in the spring of 2004, ordering unarmored trucks into an active combat zone where six civilian drivers died in an ambush, according to newly available documents.

Company e-mails and other internal communications reveal that before KBR dispatched the convoy, a chorus of security advisors predicted an increase in roadside bombings and attacks on Iraq’s highways. They recommended suspension of convoys.

“[I] think we will get people injured or killed tomorrow,” warned KBR regional security chief George Seagle, citing “tons of intel.” But in an e-mail sent a day before the convoy was dispatched, he also acknowledged: “Big politics and contract issues involved.”

KBR was under intense pressure from the military to deliver on its multibillion-dollar contract to transport food, fuel and other vital supplies to U.S. soldiers. At Baghdad’s airport, a shortage of jet fuel threatened to ground some units.

After consulting with military commanders, KBR’s top managers decided to keep the convoys rolling. “If the [Army] pushes, then we push, too,” wrote an aide to Craig Peterson, KBR’s top official in Iraq.

The decision prompted a raging internal debate that is detailed in private KBR documents, some under court seal, that were reviewed by The Times.

One KBR management official threatened to resign when superiors ordered truckers to continue driving. “I cannot consciously sit back and allow unarmed civilians to get picked apart,” wrote Keith Richard, chief of the trucking operation.

Six American truck drivers and two U.S. soldiers were killed when the convoy rumbled into a five-mile gauntlet of weapons fire on April 9, 2004, making an emergency delivery of jet fuel to the airport. One soldier and a seventh trucker remain missing.

Recriminations began the same day.

“Can anyone explain to me why we put civilians in the middle of known ambush sites?” demanded one security advisor in an e-mail. “Maybe we should put body bags on the packing list for our drivers.”

Please read the entire story here

The DBA’s Exclusive Remedy- A License to Kill

Halliburton and its former KBR Inc. subsidiary knowingly sent military supply convoys into danger on roads in the Baghdad area.

High court won’t hear case against Halliburton

SF Gate

WASHINGTON (AP) — The Supreme Court has ruled out reviving lawsuits against Halliburton Corp. over insurgent ambushes that killed civilian truck drivers in Iraq.

In its order Tuesday, the court said it will not review a federal appeals court ruling that threw out suits filed by truckers and their families claiming that Halliburton and its former KBR Inc. subsidiary knowingly sent military supply convoys into danger on roads in the Baghdad area.

The attacks killed seven KBR drivers and injured at least 10 others in April 2004.

The appeals court said a federal law prohibits the lawsuits because it provides workers’ compensation to civilian employees injured while under contract with defense agencies.

Limited Discovery in USA v. KBR Case

Courthouse News  September 6, 2012

WASHINGTON (CN) – Kellogg Brown & Root can force Uncle Sam to produce records on the Army’s alleged failure to provide force protection for KBR logistical services workers in Iraq, a federal judge ruled.
KBR could face civil penalties of more than $300 million, on the United States’ claims that it billed the federal government more than $100 million for private security contractors it hired.
The government says its LOGCAP III contracts with KBR prohibited the use of such contractors.
U.S. Chief Judge Royce Lamberth ruled on Aug. 31 that he would allow discovery, after dismissing, in April, the contractor’s argument that the federal government failed to provide adequate security.
KBR also asked the government to identify which KBR claims it believes are false, by releasing the invoices, and it sought documents relating to government contracts with other contractors in Iraq, and their relations with private security firms.
Lamberth ruled that the government already has released information relating to the specific claims in question, and that the government’s relationship with other contractors is not KBR’s business.

Please read the entire story here

Burn, Baby! Burn

Remember when rioters in Watts, Calif., began shouting “Burn, Baby! BURN!” in the turmoil of 1965? I’m sure they didn’t have the following future in mind.

That would be the various lawsuits against KBR for operating burn pits in Iraq and Afghanistan. But we should all be paying attention to this and not just for the human toll it has taken on soldiers and contractors. It also says something disturbing about the ability of the federal government to exercise proper control over its private contractors.

by David Isenberg at Huffington Post  September 4, 2012

An article, “Military Burn Pits in Iraq and Afghanistan: Considerations and Obstacles for Emerging Litigation” by Kate Donovan Kurera, in the Fall 2010 issue of the Pace Environmental Law Review provides the necessary insight.

For those who haven’t been paying attention the last four years the background goes thusly:

Burn pits have been relied on heavily as a waste disposal method at military installations in Iraq and Afghanistan since the beginning of United States military presence in these countries in 2001 and 2003, respectively. Little attention was paid to the pits in Iraq and Afghanistan until Joshua Eller, a computer technician deployed in Iraq, filed suit in 2008 against KBR for negligently exposing thousands of soldiers, former KBR employees, and civilians to unsafe conditions due to “faulty waste disposal systems.” Eller and a group of more than two hundred plaintiffs returning from their tours of duty, attribute chronic illnesses, disease, and even death to exposure to thick black and green toxic burn pit smoke that descended into their living quarters and interfered with military operations.

The plaintiffs assert that they witnessed batteries, plastics, biohazard materials, solvents, asbestos, chemical and medical wastes, items doused with diesel fuel, and even human remains being dumped into open burn pits. Defense Department officials say this waste stream contained items now prohibited pursuant to revised guidelines. Plaintiffs contend that KBR breached these contracts by negligently operating burn pits.

As of August 2010 there were an estimated two hundred and fifty one burns pits operating in Afghanistan and twenty two in Iraq. The most attention has focused on the burn pit operating at Joint Base Balad in Iraq, which was suspected of burning two hundred and forty tons of waste a day at peak operation

While the health impact of the pits is what the media focuses on, Kurera sees even more important legal issues: She writes:  Please read the entire article here

Judge declines to dismiss Oregon soldiers’ case against KBR

The Oregonian  August 30, 2012

Magistrate Judge Paul Papak this week denied KBR’s request to throw out the lawsuit by 12 Oregon soldiers. The 12 in the lawsuit are part of a group who accuse the company of knowingly exposing them to a carcinogen, hexavalent chromium, that was present at a water treatment plant in southern Iraq where the soldiers were assigned to provide security for KBR engineers.

The company denies the charge.

Papak also denied requests by both sides to exclude the others’ expert witnesses, except to limit the extent of the medical opinions offered by Dr. Arch Carson, who said the soldiers’ suffered “genetic transformation injury” as a result of their exposure to the carcinogen. Carson’s testimony will be allowed, but he will not be allowed to argue that the injury persists to the present day. Papak noted that Carson conceded “that he lacks a good scientific basis” for that portion of his opinion.

Please see the original here

Marine Veteran KBR PTSD Casualty Wade Dill July 16, 2006

After many years of surviving an extremely abusive Overly Zealous Defense

Wade Dill’s  family was finally provided death benefits under the Defense Base Act

These benefits were recently taken away by the Benefits Review Board when Attorney Bruce Nicholson, who was actively pursuing a settlement with KBR/AIG’s Attorney Michael Thomas, had a contract with the widow, was the attorney of record with the BRB, did not as much as respond to the Appeal.

While Bruce Nicholson is the one who apparently purposely abandoned the claim, Michael Thomas and the BRB were more than happy to carry on without notifying the widow that AIG’s appeal of her claim was unopposed.

Our thoughts are with you today Barb

Civilian Contractors Death Sentence by Cancer due to KBR/AIG denial of medical

Injured War Zone Contractor Dan Hoagland shares his story of medical treatment denied by KBR/AIG, resulting in a death sentence by Cancer, with Sean Calleb.

Scott Bloch, Defense Base Act Attorney tells the truth about the Defense Base Act Insurance Scandal and our Defense Base Act Class Action Lawsuit.

Join our Defense Base Act Class Action Lawsuit here

Taxpayers may not be on the hook for KBR’s legal costs in sodium dichromate suits

Oregon Live  June 26, 2012

It’s not clear who’s going to pay legal costs for defense contractor KBR Inc., which is being sued by National Guard soldiers who accuse the company of knowingly exposing them to a carcinogen.

While the company persuaded the Army Corps of Engineers to write an indemnification clause into its 2003 contract to restore the flow of Iraq’s oil, the Corps has twice refused KBR’s request to cover its costs in the two lawsuits proceeding against it in Oregon and Texas.

Lawyers for KBR say they believe the company is entitled to have its expenses covered by taxpayers but is proceeding through the litigation in the meantime at its own risk and expense, said Geoffrey Harrison of the Houston firm of Susman, Godfrey. The company expects to challenge the Corps’ denial “maybe at the end of the case,” he said.

John Kirkland, Civilian Contractor, Fluor, Killed in Afghanistan

Florida Today  June 8, 2012

American Contractor Killed at Forward Operation Base Salerno

John Kirkland, 55, of Houston, TX, passed away on June 1, 2012, during an attack by the Taliban in Afghanistan. Son of Jeannine and Gordon, John was born in Atlanta, Georgia on June 16, 1956. He would have been 56 years old on June 16th.

John grew up in Florida, where he lived in Melbourne and Palm Bay. He owned and operated a local stucco business until he moved to Houston in 1998. He lived there before becoming employed in 2006 as a Maintenance Mechanic for KBR, a civilian military contractor.

John’s first job assignment was at a military base located in Iraq in 2006. In May, 2010 he was transferred to a Forward Operating Base in Afghanistan named Salerno, where he worked for the civilian military contractor Fluor. He was killed on June 1, 2012 during an attack by the Taliban. His remains will be cremated at Dover Air Force Base.

John is survived by his son, Christopher Ashley Kirkland; and his two brothers, Virgil Eugene Kirkland of Ocala, FL and Douglas Paul Kirkland of Palm Bay, FL; as well as an Aunt and Uncle, Glenda and Eddie McCoy of Mooresville, NC, along with numerous cousins.

The Defense of Freedom Medal Held Hostage by the Defense Base Act

Crossposted from the Defense Base Act Compensation Blog  May 31, 2012

WHY HAVE I NOT RECEIVED THE DEFENSE OF FREEDOM MEDAL?

The Defense of Freedom Medal is an award held to be the equivalent of the Purple Heart and is awarded to Civilian Contractors injured in the war zones. 

One question we get here repeatedly is why have I not received the Defense of Freedom Medal?   The question comes from severely disabled Civilian Contractors wounded in horrific explosions and insurgent attacks.

WHO IS HOLDING YOUR MEDAL HOSTAGE?

The company you work for is responsible for requesting  that you receive the medal and providing the documentation that you have indeed suffered a qualifying injury.

As all Injured War Zone Contractors know the minute you must file a Defense Base Act Claim you are automatically placed in an adversarial relationship with your employer.   Your Employer and the Defense Base Act Insurance Company are considered equal entities in the battle you have entered for your medical care and indemnity.

Your Employer is required to assist the insurance company in denying your claim.  Under the War Hazards Act the Employer/Carrier must prove to the WHA Tribunal that they have diligently tried to deny your claim.

It appears that your Defense of Freedom Medals could be held hostage by your Employers due to the adversarial relationship the Defense Base Act has created.

When KBR, DynCorp, Blackwater, Xe, et al, provide documentation of your injuries to the DoD they have just admitted that you are indeed injured and to what extent.

Specific information regarding injury/death: Description of the situation causing the injury/death in detail to include the date, time, place, and scene of the incident, and official medical documentation of the employee’s injuries and treatment. The description must be well documented, including the names of witnesses and point of contact (POC) for additional medical information, if needed.

These admissions sure would make it hard for Administrative Law Judges like Paul C Johnson to name them as alleged.   ALJ Paul C Johnson has yet to award benefits to a DBA Claimant in a decision based on a hearing.

KBR who can never seem to find their injured employees medical records holds the key to the Defense of Freedom Medal.

Certainly there are other lawsuits outside of the DBA that the withholding of this information is vital too.

For those of you who still give a damn after being abused by so badly simply because you were injured-

The Defense of Freedom Medal may find you many years down the road once an Administrative Law Judge says you were injured.

We recommend that you contact your Congressional Representative or Senator and have them request this Medal if you qualify for it and would like to have it.

If you are still litigating your claim it SHOULD serve to legitimize your alleged injuries.

Wyden calls for investigation into ‘excessive’ expenses by legal team for KBR

The Oregonian May 22, 2012

U.S. Sen. Ron Wyden is calling for the Department of Defense to investigate “excessive” expenses of the legal team of defense contractor Kellogg, Brown and Root, granted special indemnity for its contract in Iraq.

Wyden’s sharply worded letter sent Wednesday to Defense Secretary Leon Panetta comes after recent investigations into KBR’s legal team uncovered costs that included attorneys bills of $750 per hour, numerous first-class flights and paying one expert more than $500,000 for testimony and consultation who admitted billing for time spent sleeping.

A lawsuit against KBR was brought by a group of Oregon Army National Guard assigned to provide security in 2003 for KBR personnel claims KBR management knew that the soldiers were being exposed to carcinogenic chemicals while working at a water treatment plant in Qarmat Ali.

The Pentagon legally covers dozens of military contractors doing dangerous jobs at home, such as making anthrax vaccine or disposing of mustard gas. The details of the immunity emerged in 2010 in a court case in Portland. It releases KBR from all financial liability for misconduct and allows KBR to pass all legal costs to the U.S. government.

“Essentially, KBR was handed a blank check with the Pentagon’s signature, and it seems clear to me that they intend to run up the bill as much as possible before cashing that check,” Wyden wrote in the letter.

Under KBR’s contract, the government has the ability to direct KBR’s legal defense and require it to settle with Oregon Guard, according to Wyden

Please see the original and read more here

America’s Shame: The U.S. Government’s Human Trafficking Dilemma

Project on Government Oversight  May 7, 2012

For Vinnie Tuivaga, the offer was the answer to a prayer: A job in a luxury hotel in Dubai–the so-called Las Vegas of the Persian Gulf–making five times what she was earning as a hair stylist in her native Fiji.

She jumped at the chance, even if it meant paying an upfront commission to the recruiter.

You probably know how this story is going to end. There was no high-paying job, luxury location or easy work.

Tuivaga and other Fijians ended up in Iraq where they lived in shipping containers and existed in what amounted to indentured servitude.

Journalist Sarah Stillman told Tuivaga’s story and that of tens of thousands of other foreign workers in acute detail almost a year ago in her New Yorker piece, “The Invisible Army.”

In some cases, Stillman found more severe abuses and more squalid living conditions than what Tuivaga and her fellow Fijians experienced.

But like Tuivaga, thousands of foreign nationals in the U.S. government’s invisible army ended up in Iraq and Afghanistan war zones because they fell victim to human traffickers.

Let that sink in.

This human trafficking pipeline wasn’t benefitting some shadowy war lord or oppressive regime. No, these are workers who were feeding, cleaning up after, and providing logistical support for U.S. troops—the standard-bearers of the free and democratic world.

In its final report to Congress last year, the Commission on Wartime Contracting said it had uncovered evidence of human trafficking in Iraq and Afghanistan by labor brokers and subcontractors. Commissioner Dov Zakheim later told a Senate panel that the Commission had only scratched the surface of the problem. He called it the “tip of the iceberg.”

In essence, despite a 2002 presidential directive that set a “zero tolerance” on human trafficking, modern-day slavers have been operating with impunity under the aegis of the U.S. government.

Nick Schwellenbach, who until last month was the director of investigations at the Project On Government Oversight (POGO), and author David Isenberg also wrote about the conditions some of these foreign workers endured in Iraq.

Nick and David uncovered documents that showed how one U.S. contractor—in this case KBR—was well aware that one of its subcontractors, Najlaa International Catering Services, was involved in trafficking abuses.

Please see the original and read more here