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KBR sues US Army after losing case to Oregon National Guardsmen

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Even after the US Army told KBR in November 2011 their litigation costs for Qarmat Ali were not covered under the classified indemnification agreement, KBR told it’s shareholders in it’s Annual 10-K Report filed with the SEC on February 22, 2012 that:

During the period of time since the first litigation was filed against us, we have incurred legal defense costs that we believe are reimbursable under the related customer contract. We intend to bill for these costs…..

KBR’s suit against the US Army (KBRSI v. USA  case number 1:12-cv-00780 pdf) claims:

Based upon erroneous legal and factual analysis of the terms of the indemnification agreement, USACE has refused to indemnify KBRSI for the costs of defending against the various third-party lawsuits and has refused to participate or assume direct responsibility in defending KBRSI in the underlying tort litigations.

The government’s denial of indemnity constitutes a direct breach of indemnification agreement.

KBR also claims that:

The Government Caused or Contributed to the Alleged Exposure to Sodium Dichromate at Qarmat Ali.

At last count there were approximately 170 British and American plaintiffs involved in suits against KBR for exposure to sodium dichromate at Qarmat Ali. If each of these plaintiffs are awarded at least the $7.1 million amount the first 12 Oregon National Guardsmen were awarded, KBR is looking at a potential payout of $1.2 BILLION. I wonder how their shareholders feel about that!

I totally understand the need for indemnification is some Government contracts. But, indemnification doesn’t give you free reign to disregard standard pre-job safety assessments, safety programs and hazardous material handling requirements. The bottom line is, the US Army doesn’t feel obligated to indemnify KBR for a court verdict that stated KBR “acted with reckless and outrageous indifference to a highly unreasonable risk of harm and conscious indifference to the health, safety and welfare of others”.

Hopefully these defense contractors will get the message you can’t just do whatever the Hell you want and then charge the tax payer for it!

Ms Sparky




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  1. Comment by KBR Watch:

    KBR should know, that the indemnity was as illegal as if they were paying a bribe to DCMA contracting officers. Once again, this shows the U.S. Army is operating far outside the law and making their own rules. Bottom line, just because a contracting officers put it in the contract – doesn’t mean it is legal. KBR is just finding that out that some of their ” arrangments ” and behind the scenes schemes just are not legal. This is as irresponsible of KBR as not having fully armored cabs on their tractor trailer rigs and expecting that the Defense Base Act Insurance IS their management planning. Killem’ Baggem and Replacem’

    • Comment by KBR WATCH:

      How many other KBR Qui Tams are hidden under seal you have to wonder.

      DOJ ( Erik Holder ) – why are you holding up trials that will recoup taxpayer money for overcharging ? Where is the First Kuwaiti money that should have been recovered. Do you really only depend on the Agency coming to you. The report clearly states that to repair the shoddy workmanship where the Army Corp of Engineers and the State Department colluded to have First Kuwaiti build this unnecessary embassy, the United States taxpayer is owed $ 120+ Mil and yet Holder sits on his hands once again – why Holder. Time to go Holder.

  2. Comment by leo:

    Let’s me get this right kbr was giving a contact that there where the subject expects. There a contacter it was there call not to do the right thing working for Kbr not hard just do the right thing and stand by it. You will not make friends but are you there to make friends.

  3. Comment by ssg (ret/u.s. army)jericho n beauchamp:

    Ok,what about the rest of us.I got a stage 4 cancer to my throat that wasn’t suppose to be in me for another 30 years.guess I won’t be seeing that much cash.how do we start our litigation case?I was active duty for 14 years army and this ruined my career and changed me drastically.for 4 years I have been in a state of shock over this,40lbs less still.when the hell am I and the rest of us going to get our piece.I have to live with more than a quarter of my neck gone because of the shortcuts others take burning debri.that’s bs!they took me from what I loved,working with soldiers and took a damn good leader from them.I lost my juggler vein,95 lymph nodes,longmuscle along neck,all on right side.wth am I gonna get,prob less than others on emot5ional stress.yep I’m pissed.I have suffered long enough.I have nuerological damage in my neck called radiation damage which will last for several years.I have a statement from my oncologist stating I’m not suppose to have this cancer.I nearly dies from chemo and radiation to survive and get screwed by our govt and getting cut on my % for disability,not combat related,but “service connected from iraq”u don’t get crap for service connected.that’s crazy service connected and iraq r in the same sentence!I have been patient for too long.19136025218 is my cell.I need what they have taken from me back.I have lost a crapload of money because I don’t make as much as I did and the govt deducted(va) 10% off of my disability already.how is that when the ppl doing this are 100% wrong?how?bs!like I wrote I could really use this towards my kids future,the debt of making less and cutting me 6 years short of my pay and retirement while serving my country in iraq.I got the irs on my butt and never had issue like that until I retired.this cancer crap has caused a chain reaction of events that has bee a emotional,mental,physical and financial hell for me.when I call congressmen,they never calll back.that’s total crap how we r treated and america needs to know.so where do I start,so I can get some doggone justice??-ssg(ret)jericho n beauchamp/u.s. army retired.

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