3:2009cv00632 - Document 44 (D. Or. "The plausibility standard is not akin to a probability requirement, but it asks for more than a sheer possibility that a defendant has acted unlawfully." & Cas. Adjusted free cash flows1. 2012). (Docket Entry Nos. Mesa v. California , 489 U.S. 121, 136, 109 S.Ct. The only court to apply this test in a Defense Base Act case did so on a summary judgment motion. To that end, the FCA contains strict limits on its qui tam provisions, including a statutory first-to-file rule. The majority opinion further concludes that the district court did not abuse its discretion in denying Relator leave to amend. The district court, however, dismissed Carter's 2013 complaint on first-to-file grounds, because it was brought while the Carter Action was still pending before the Supreme Court. 10-CV-5645, 2017 WL 1233991, at *10 (S.D.N.Y. Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. We acknowledged, however, that the district court's judgment was not entirely error-free, because dismissal with prejudice of the one claim Carter brought within the limitations period was not called for under the first-to-file rule. 2020). The term "suggests that [the combatant-activities] immunity is quite broad." This Court reviews a dismissal for lack of subject matter jurisdiction and questions of statutory interpretation de novo. Carson, 851 F.3d at 302. Tex. Courts have held that contractors were engaging in combatant activities when they managed latrines "for active military combatants on a forward operating base," Aiello , 751 F. Supp. (Id. A federal defense is colorable "unless it is immaterial and made solely for the purpose of obtaining jurisdiction or wholly insubstantial and frivolous. " Latiolais , 951 F.3d at 296 (quoting Zeringue v. Crane Co. , 846 F.3d 785, 79394 (5th Cir. 3-1 at 1 n.1). The Ninth Circuit suggests that state tort law conflicts with the military regulation of wartime only when claims are brought by "those against whom force is directed as a result of authorized military action." 2d at 709 (citing O'Leary v. Brown-Pacific-Maxon, Inc. , 340 U.S. 504, 507, 71 S.Ct. Courts have disagreed, however, about when state tort law has the potential to conflict with military decisions during wartime. Id. The Fifth Circuit has held that, under the Longshore and Harbor Workers Compensation Act, an employee can have multiple "employers," each of which is entitled to immunity. 1-5 at 4). Carter then petitioned for certiorari, and the Supreme Court granted that petition. To that end, the majority opinion does not address, much less adopt, the district court's reasoning that an amendment or supplement to a complaint cannot, as a matter of law, cure a first-to-file defect, id. Appellees Halliburton Company; Kellogg Brown & Root Services, Inc.; KBR, Inc.; and Service Employees International, Inc. (collectively, KBR), are a group of defense Discovery on these defenses will close on August 27, 2021. Appellees Halliburton Company; Kellogg Brown & Root Services, Inc.; KBR, Inc.; and Service Employees International, Inc. (collectively, KBR), are a group of defense contractors and related entities that provided logistical services to the United States military during the armed conflict in Iraq. Working at KBR A Zoom link will be sent to the parties. A court reviewing a motion to dismiss under Rule 12(b)(6) may consider "(1) the facts set forth in the complaint, (2) documents attached to the complaint, and (3) matters of which judicial notice may be taken under Federal Rule of Evidence 201." 1-1 at 5.39). TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select, Stay up-to-date with FindLaw's newsletter for legal professionals. In adopting the FCA, the objective of Congress was broadly to protect the funds and property of the government. United States ex rel. This test states that "[d]uring wartime, where a private service contractor is integrated into combatant activities over which the military retains command authority, a tort claim arising out of the contractor's engagement in such activities shall be preempted." Create an account and take our This policy argument offers no basis for disregarding the first-to-file rule's unambiguous statutory text. at 21 n.8a question that has divided district courts in this circuit and around the country, see United States ex rel. Under the Act, "[e]mployers relinquish[ ] their defenses to tort actions in exchange for limited and predictable liability," and "[e]mployees accept the limited recovery because they receive prompt relief without the expense, uncertainty, and delay that tort actions entail." Other courts have rejected this test as excessively narrow because it limits the combatant-activities exception to "claims stemming directly from the use of force," excluding indirect wartime harms. We conclude that it does. Without more, the court cannot conclude, as a matter of law, that KBR does, or does not, qualify as the plaintiffs employer under the Defense Base Act. See Carter III, 135 S. Ct. 1970. 2019). Courts have had little trouble concluding that the federal government has a unique federal interest in "the management of wars." Because we need not do so, we decline to comment on the other reasons the district court identified as justifying its rejection of Carter's effort to circumvent dismissal through amendment. Gadbois v. PharMerica Corp., 809 F.3d 1 (1st Cir. 1657, 68 L.Ed.2d 58 (1981) ; Jefferson County v. Acker , 527 U.S. 423, 431, 119 S.Ct. The purpose behind the combatant-activities exceptionpreventing courts from second-guessing military decisionsdoes not require preempting torts that stem from purely private actions. In this case, the plaintiffs are suing the parent company of their employer; in Fisher , the plaintiffs sued their employer and other affiliated entities. at 481 ("After all, if the contractors conduct did follow from the military's decisions or orders, then the conduct would presumably not be in violation of the contract."). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." We held that Carter did not properly preserve the issue of equitable tolling, and so we summarily affirmed the district court's refusal to equitably toll the statute of limitations. Fisher , 667 F.3d at 610 (quoting Morrison-Knudsen Constr. The Supreme Court in Carter III did not reject, or even comment on, this Court's holding that a court must look at the facts as they existed when the claim was brought to determine whether an action is barred by the first-to-file bar. Carter II, 710 F.3d at 183. The Federal Officer Removal Statute states: "Federal officers may remove cases to federal court that ordinary federal question removal would not reach." The Defense Base Act is "liberally construed," Voris v. Eikel , 346 U.S. 328, 333, 74 S.Ct. BENJAMIN CARTER, Plaintiff - Appellant, v. HALLIBURTON CO.; KELLOGG BROWN & ROOT SERVICES, INC.; SERVICE EMPLOYEES INTERNATIONAL INC.; KBR, INC., Defendants - Appellees. $ 16. 15), is denied. Carter urges that the Supreme Court's decision to describe one of Carter's claims as live was a manner of signaling that that claim is unaffected by the first-to-file rule. 1651(c) ); see also Flying Tiger Lines, Inc. v. Landy , 370 F.2d 46, 52 (9th Cir. 2671, several courts have applied the combatant-activities exception to government contractors. (Id. 2d 698, 709 (S.D.N.Y. FindLaw's United States Fourth Circuit case and opinions. On this record, the court cannot conclude as a matter of law that KBR and Service Employees International were, or were not, under military command authority. Unfortunately, KBR decided to ignore the unambiguous threats of retaliation levied by Iran following the death of General Qassem Soleimani. application of plaintiff for an extension of time to file a petition for a 2010) ("Because the basis for many of these defenses is a respect for the interests of the Government in military matters, district courts should take care to develop and resolve such defenses at an early stage while avoiding, to the extent possible, any interference with military prerogatives. Contact us. Servs., Inc. , No. Jan. 5, 2017) (arguing that Gadbois failed to give sufficient weight to the plain language of the first-to-file bar) (quoting Carter VI, 315 F.R.D. 2015) ("We observe that sufficient federal direction has also been found under 1442(a) when a private contractor performed maintenance on generators at an Army encampment, based on the fact that this work was done under Army supervision and that the contractor could not expand the scope of its work without authorization.") Carter argues that even if the dismissals of the Maryland and Texas Actions did not automatically cure the Carter Action's first-to-file defect, his subsequent, Rule 15(a)-based proposed amendment to his Carter Action complaint would have done so. 2010), rev'd on other grounds , 667 F.3d 602 (5th Cir. Service Employees International Union Employee Reviews - Indeed 31 U.S.C. See Heavin v. Mobil Oil Expl. For 100 years, KBR has been part of some of the worlds most influential achievements. The answer to this question turned on how a court should read the first-to-file rule's prohibition on the bringing of an FCA action while a related action is pending. 31 U.S.C. See Carter II, 710 F.3d at 183. He, too, did not question this Court's decision to conduct its first-to-file analysis based on the facts in existence at the time that the Carter Action was brought.4. But see United States v. Medco Health Solutions, Inc., No. & Prod. no. See Carter III, 135 S. Ct. at 1979 (The False Claims Act's qui tam provisions present many interpretive challenges, and it is beyond our ability in this case to make them operate together smoothly like a finely tuned machine.). The fact that the Maryland Action had been dismissed prior to the district court's ruling on the Carter Action gave the court no pause, because it believed that whether a qui tam action is barred by [the first-to-file rule] is determined by looking at the facts as they existed when the action was brought. United States ex rel. The plaintiffs were working under a predecessor to the LOGCAP IV contract at issue here. Id. WebHighly supportive work environment. Our Company | KBR at 4). "To determine whether jurisdiction is present for removal," the court considers "the claims in the state court petition as they existed at the time of removal." , 744 F.3d at 351 ("We agree with the Johnson court's reasoning and adopt its test here."). , 744 F.3d at 351 ("[T]he extent to which [the defendant] was integrated into the military chain of command is unclear."). 28 U.S.C. Id. 1813, 23 L.Ed.2d 396 (1969) ; Arizona v. Manypenny , 451 U.S. 232, 242, 101 S.Ct. 2010); see also Goldenberg v. Murphy, 108 U.S. 162, 163 (1883) (A suit is brought when in law it is commenced.); Harris v. Garner, 216 F.3d 970, 974 (11th Cir. We clarified, however, that once a case is no longer pending the first-to-file bar does not stop a relator from filing a related case. Id. The plaintiffs allege that KBR was not a party to the LOGCAP IV contract. Paul Papak OPINION AND 2d at 577 ("[T]he actions at issue were taken under the direct and detailed control of federal officers because [the contractor's] maintenance and power generation services at [a military base] were performed [under a contract] with the U.S. The court has jurisdiction under 28 U.S.C. If a court finds that the particular action before it is barred by the first-to-file rule, the court lacks subject matter jurisdiction over the later-filed matter, and dismissal is therefore required. 88, 98 L.Ed. 4. 2. Transcript : KBR, Inc., Q1 2023 Earnings Call, May 01, 2023. Id. 2019) (quoting Twombly , 550 U.S. at 555, 127 S.Ct. I agree with the majority opinion's conclusion that the dismissal of all earlier-filed, related actions does not, by operation of law, lift the first-to-file bar on a later-filed action. In June 2011, Carter filed a qui tam complaint against KBR in the Eastern District of Virginia. Another plaintiff, Andrade, submitted a Claim stating that she was a "Food Service Worker." We review a denial of leave to amend a complaint for abuse of discretion. If the contractor has significant discretion in the way it performs its duties, the military does not retain command authority. Watson v. Philip Morris Cos., Inc. , 551 U.S. 142, 154, 127 S.Ct. O'Keeffe v. Pan Am. The plaintiffs do not allege that Iran attacked them out of "personal animosity" or for "purely personal reasons." Navy. 3730(b)(5). Saleh , 580 F.3d at 7. Inclusive Cmtys. See. 1955 ). 2012). 902(2). The plaintiffs position is that the Defense Base Act does not apply because they did not have a direct employment relationship with KBR. at 1978 (explaining that because at least one claim [may be] timely on remand, the Court must consider whether [Carter's] claims must be dismissed with prejudice under the first-to-file rule). Because the record supports federal jurisdiction, remand is denied. See id. In ordinary parlance, one bring[s] an action by institut[ing] legal proceedings. Bring an Action, Black's Law Dictionary 231 (10th ed. Following dismissal of all earlier-filed, related actions, Relator sought leave to amend his complaint to avoid preclusion under the first-to-file bar. at 50712, 108 S.Ct. Schmit v. ITT F. Elec. See Gabelli v. SEC, 133 S. Ct. 1216, 1221 (2013) (describing the interests of defendants that are advanced by statutes of limitations). 2014), which held that even when [a] District Court lacks jurisdiction over a claim at the time of its original filing, a supplemental complaint may cure the defect by alleging the subsequent fact which eliminates the jurisdictional bar. Rather than resolving those questions, the majority opinion simply holds that a proposed amendment or supplement to a complaint cannot cure a first-to-file defect when the amendment or supplement does not reference the dismissal of publicly disclosed, earlier-filed related actions. The threshold issues are whether the claims belong in federal court and whether there are viable claims at all. Co., 560 F.3d 371, 378 (5th Cir 2009))). To determine whether the combatant-activities exception preempts a state tort claim, courts apply the "command-authority" test. The Act "establishes a uniform, federal compensation scheme for civilian contractors and their employees for injuries sustained" while working abroad under a contract with the United States. WebDaily Duties at Service Employee International,Inc. Circuit approaches and instead following, as the more persuasive, the Third and Fourth Circuit reasoning. KBR may file a motion for summary judgment on the Defense Base Act and combatant-activities exceptions no later than September 17, 2021. Aiello , 751 F. Supp. 25-1). You will be notified when it is ready. Kellogg has no direct employees. at 1979 (quoting Pending, Black's Law Dictionary 1314 (10th ed. WebService Employees International Union (SEIU) is a 501(c)(5) labor union representing over 2 million workers in about 100 occupations in the United States and Canada. Id. Aiello , 751 F. Supp. Defendant Service Employees International, Inc. ("SEI"), is a corporation organized under the laws of the Cayman Islands with its principal place of business in Dubai, United Arab Emirates. Co. , 276 F.3d 720, 723 (5th Cir. Rule 8 "does not require detailed factual allegations, but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Finally, Carter contests the district court's denial of his Rule 59(e)-based motion for reconsideration. Satellite, Ground Systems & Space Communications, Scientific Research & Laboratory Services, Earth, Environment & Space Science Monitoring, Noise, Vibration & Fluid Dynamics Engineering, Floating Production, Storage & Offloading (FPSO) Facilities, Commercial Cloud & Mission Service Platform, Artificial Intelligence & Machine Learning. Circuit suggested that the combatant-activities exception eliminates "tort from the battlefield." The record reveals little other information about the work the plaintiffs performed at the Al Asad base, or about what level of discretion Service Employees International had over that work. "); Ruppel , 701 F.3d at 1181 (" Acting under covers situations, like this one, where the federal government uses a private corporation to achieve an end it would have otherwise used its own agents to complete."). We then addressed the first-to-file rule. Med. For a discussion of unsuccessful, pre-Carter Action suits brought by Carter against KBR, see United States ex rel. Daniel L. Russell, Jr., Pro Hac Vice, Raymond B. Biagini, Pro Hac Vice, Covington & Burling LLP, Washington, DC, Susan D. Noe Wilson, Schouest, Bamdas, Soshea & BenMaier, PLLC, Houston, TX, for Defendant. WebBrown & Root provides engineering consulting services, including project management, operations and maintenance including: Industrial Small-Cap Construction; Installation; Maintenance; Repair; Turnaround services. Congress could certainly have enacted a revival mechanism in the first-to-file rule statute notwithstanding repose and staleness concerns, but it has not done so, and we are not at liberty to create one. Accordingly, the appropriate reference point for a first-to-file analysis is the set of facts in existence at the time that the FCA action under review is commenced. UNITED STATES BENJAMIN CARTER v. HALLIBURTON CO KELLOGG BROWN ROOT SERVICES INC SERVICE EMPLOYEES INTERNATIONAL INC KBR INC. WebWe are the Service Employees International Union (SEIU), a union of about 2 million diverse members in healthcare, the public sector and property services who believe in and fight for Although the present record is insufficient for the court to determine whether either or both defenses apply, KBR has asserted a colorable basis to infer that one or both may preempt the plaintiffs claims. UNITED STATES OF AMERICA v. HALLIBURTON CO.; This contention does not withstand scrutiny. 2d at 714, and "the extent to which [the contractor] was integrated into the military chain of command," Burn Pit Litig. Around here, we define the future. We are a company of innovators, thinkers, creators, explorers, volunteers and dreamers. But we all share one goal: to improve the world responsibly and safely. Together, KBR employees are pushing industries and organizations forward, from our headquarters in Houston, Texas, to Earths orbit and beyond. Click here to learn how to enable. Johnson v. United States , 170 F.2d 767, 770 (9th Cir. 2015) (per curiam).

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