KBR sues US Army after losing case to Oregon National Guardsmen
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!
Pages: 1 2