Halliburton, KBR win appeal of Fisher vs Halliburton on Exclusive Remedy Clause of Defense Base Act

The Defense Base Act’s Exclusive Remedy “A License to Kill”

The Exclusive Remedy was intended to be trade off to keep injured contractors from having litigate with their employers when they are injured.  As it turns out the employers are off the hook and the injured contractors fight for years for medical care and lost wages from private insurance companies, AIG, CNA, ACE

AIG has fought the survivors and families of those killed like they were common criminals for the death, medical, and lost wages that were to be provided “forthwith”.

And don’t think something like couldn’t happen to you, your only one bomb or one sniper away.

Bloomberg  January 12, 2012

KBR Inc. (KBR) and its former corporate parent, Halliburton Co. (HAL), won’t face a jury on claims they sent unarmed civilian convoy drivers into an Iraqi battle zone in 2004, knowing the workers would be injured or killed, an appeals court ruled.

The U.S. Court of Appeals in New Orleans today ruled the drivers’ claims were blocked by the Defense Base Act, a U.S. law that shields military contractors from lawsuits. The drivers were attacked and injured because of their role in support operations for the U.S. Army, which is covered under that statute, the judges said.

“Coverage of an injury under the DBA precludes an employee from recovering from his employer,” even if the worker claims the company was “substantially certain” the injuries would occur, U.S. Circuit Judge Priscilla R. Owen said in a 30-page ruling by the panel.

KBR, a Houston-based government contractor, was sued in 2005 by the families of seven drivers killed while working inIraq for the largest U.S. military contractor. The company appealed a 2010 lower-court ruling that jurors could weigh the companies’ actions without second-guessing the actions of the Army.

Unarmed Civilians

U.S. District Judge Gray Miller, who presided over the case in Houston federal court, refused to dismiss Halliburton, which spun off KBR as a separate company in 2007. Miller had also ruled that the companies couldn’t name the military as a co-defendant in the lawsuits, so the Army wasn’t required to defend its actions.

The drivers and their families claimed KBR officials fraudulently recruited workers for safe jobs in Iraq and intentionally sent unarmed civilians into a recognized combat zone in April 2004. KBR’s military-supply contract gave company officials the right to refuse assignments deemed too dangerous for civilians, according to the complaints.

KBR and Halliburton argued that they weren’t liable because they couldn’t refuse Army orders to dispatch the fuel convoys under terms of their multibillion-dollar supply contract with the U.S. military. The convoys were attacked at a time when Iraqi insurgents were escalating the fight against U.S. troops that had taken over the country to oust dictator Saddam Hussein.

The case is Fisher v. Halliburton, 10-20202, U.S. Court of Appeals, Fifth Circuit (New Orleans).