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In the course of reaching this holding, however, the Court contrasted the seal requirement with the first-to-file rule, which the Court described as one of a number of [FCA] provisions that do require, in express terms, the dismissal of a relator's action. Id. 5 (1953) ; the plaintiffs filed a claim under the Act against KBR, alleging that KBR is its employer, (Docket Entry Nos. The main See, e.g., Walburn v. Lockheed Martin Corp., 431 F.3d 966, 972 n.5 (6th Cir. 2d at 664. , 744 F.3d at 348 ; Aiello , 751 F. Supp. The plaintiffs do not describe the type of work they performed at the Al Asad base. Burn Pit Litig. 1-1 at 5.2). Se., Inc. , 913 F.2d 178 (5th Cir. 1813, 23 L.Ed.2d 396 (1969) ; Arizona v. Manypenny , 451 U.S. 232, 242, 101 S.Ct. WebOther than its ultimate parent (KBR, Inc.), Service Employees International, Inc. does not have any publicly traded affiliates. Carter v. Halliburton Co. (Carter V), 144 F. Supp. Placing profits over the safety of these individuals and contractors, KBR failed to evacuate them. The Court then remanded this case for further proceedings. Heath v. AT&T, Inc., 791 F.3d 112, 11921 (D.C. Cir. Beauchamp v. Academi Training Ctr., 816 F.3d 37, 39 (4th Cir. United States ex rel. Tex. (citing Twombly , 550 U.S. at 556, 127 S.Ct. Together, KBR employees are pushing industries and organizations forward, from our headquarters in Houston, Texas, to Earths orbit and beyond. Contact us. Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. A court's lack of discretion when it comes to sanctioning first-to-file violations was underscored in a recent Supreme Court decision. Finally, KBR meets the fourth prong, showing that the plaintiffs claims are "alternatively connected or associated" with "acts under color of federal office." Despite Carter's objections, the district court on remand invoked the first-to-file rule and dismissed the Carter Action without prejudice. KBR removed to federal court under the federal-officer removal statute, the plaintiffs moved to remand, and KBR moved to dismiss. An employer under the Defense Base Act is "someone whose employees are covered by the [Act]." 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. The False Claims Act's first-to-file bar provides that [w]hen a person brings an action under [the False Claims Act], no person other than the Government may intervene or bring a related action based on the facts underlying the pending action. 31 U.S.C. 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. Carter v. Halliburton Co. (Carter I), No. Because, on the current record, the court cannot reliably determine whether either defense is preemptive as KBR argues, the motion to dismiss is also denied. R. CIV. Claimant began working for employer in Iraq as a heavy truck driver in January 2005 and later became a convoy commander. They made an honest effort to make sure their employees Fisher , 703 F. Supp. 2017); United States ex rel. Defendant Kellogg Brown & Root Services, Inc. ("KB&RS"), is a corporation organized under the laws of the State of Delaware with its principal place of business in Houston, Texas. The plaintiffs allege that they were working for a military contractor at an overseas military base and were injured when a foreign country attacked the base with missiles. La. 2000) (en banc) ([B]rought and bring refer to the filing or commencement of a lawsuit, not to its continuation.); Chandler v. D.C. Dep't of Corr., 145 F.3d 1355, 1359 (D.C. Cir. The company's corporate offices are in the KBR Tower in Downtown Houston. The company also has large offices in Arlington, Virginia, Birmingham, Alabama, and Newark, Delaware, in the United States and Leatherhead in the UK. 3730(b)(1). Webhalliburton co.; kellogg brown & root services, inc.; service employees international inc.; kbr, inc., respondents. 2000) ("The purpose of the Defense Base Act is to provide uniformity and certainty in availability of compensation for injured employees on military bases outside the United States."). 2010), rev'd on other grounds , 667 F.3d 602 (5th Cir. Here, the court has few, if any, facts about the relationship between the plaintiffs and KBR. This arrangement, Carter contends, conflicts with the Supreme Court's apparent policy preference for interpretations of the FCA that facilitate government recoveries. 2019) (quoting Twombly , 550 U.S. at 555, 127 S.Ct. The plaintiffs motion to remand, (Docket Entry No. The Simply put, Carter was ineligible for relief on a motion for reconsideration, and thus the district court did not err in denying him such relief. We disagree for two reasons. 2012). The Supreme Court concluded, [w]e therefore agree with the Fourth Circuit that the dismissal with prejudice of [Carter's] one live claim was error. Id. 3729(a)(1). The court added that, in any event, it found Gadbois unpersuasive. Research & Policy Director Service Employees International Union Local (Former Employee) - San Jose, CA - March 12, 2020. $ 83. Because the record supports federal jurisdiction, remand is denied. 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. The Federal Tort Claims Act waives sovereign immunity for certain tort claims against the federal government, but it contains several exceptions to that waiver. KBR owns Service Employees International. My name is [indiscernible], I will be your moderator for today's call. The plaintiffs allege that they were employed by Service Employees International and worked at the Al Asad base, but without further information. 15), is denied. Adjusted free cash flows1. Fisher , 667 F.3d at 610. In contrast, we cannot presume that the Supreme Court intended, with one ambiguous statement, to overrule this Court's conclusion as to the proper temporal reference point for a first-to-file inquiry.5 This conclusion was never contested in the parties' briefing, and the Supreme Court did not present it as an issue before it in its opinion. See United States ex rel. Co., 853 F.3d 80, 8586 (2d Cir. , 744 F.3d at 349. Carter timely noticed an appeal of the district court's rulings dismissing the Carter Action, denying Carter's motion for amendment, and denying Carter's motion for reconsideration. Accordingly, the Supreme Court's decision in Carter III does not disturb our initial holding that the reference point for a first-to-file analysis is the set of facts in existence at the time that the action under review is commenced. Rigsby, 137 S. Ct. 436, 440 (2016); 31 U.S.C. Hayes v. Allstate Ins. On remand, Carter objected to the applicability of the first-to-file rule. Click here to learn how to enable. Financial Highlights for the Quarter Ended March 31, 2023. 1651(a)(4). no. See Gadbois, 809 F.3d at 46. R. CIV. Carter also filed a motion to amend the Carter Action complaint under Federal Rule of Civil Procedure 15(a), and argued that an amendment would confirm the inapplicability of the first-to-file rule to the Carter Action. See Burn Pit Litig. 3. The court has jurisdiction under 28 U.S.C. The first-to-file rule provides that [w]hen a person brings an action under [the FCA], no person other than the Government may intervene or bring a related action based on the facts underlying the pending action. 31 U.S.C. 11-00685 ack-bmk order denying defendants motion to dismiss and transferring the case to the united states district court for the southern district of texas, houston division for the following reasons, the court: (1) denies 3730(b)(5). Carter appealed the dismissal of the Carter Action to this Court. See id. The allegations are that there was missile attack that was willful, carried out by third parties, the direct cause of the plaintiffs injuries, and related to the U.S. military's operations in Iraq. The FCA imposes liability for knowingly presenting false or fraudulent claims to the government of the United States for payment or approval. See Carter III, 135 S. Ct. 1970. , 744 F.3d at 351 ("We agree with the Johnson court's reasoning and adopt its test here."). , 744 F.3d at 348. Id. I work in Iraq for KBR and am paid by Service Employees Int"l in Dubai, UAE. Applying this logic, and finding no statute of limitations issue, we ruled that the district court's dismissal of the Carter Action should have been without prejudice instead of with prejudice. & Cas. 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. 2002) (citing 28 U.S.C. The D.C. , 744 F.3d at 347 (applying the Saleh test); Harris , 724 F.3d at 479 (same). The defendant may file a motion for summary judgment no later than September 17, 2021. Ass'n Cas. Carter, in effect, reads the Court's statement to mean that an earlier suit bars the continuation of a later suit while the earlier suit remains undecided but ceases to bar the continuation of that suit once it is dismissed. This reading would empower courts conducting a first-to-file analysis to take into account the dismissals of an action giving rise to a relator's first-to-file problems. 11-684-RGA, 2017 WL 63006, at *12 (D. Del. As explained above, in our original decision in this case, we reversed the district court's dismissal of the Carter Action with prejudice, and remanded with instructions to have the Carter Action dismissed without prejudice. Our first decision in this case held that courts 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. Under that rule, [w]hen a person brings an action under [the FCA], no person other than the Government may intervene or bring a related action based on the facts underlying the pending action. 31 U.S.C. 1955 ). 1998) ("We have previously held that corporate entities qualify as persons under 1442(a)(1)."). Change the World! KBR submitted a declaration by Michael Flanagan, the Vice President of Government Solutions at KBR, stating that the U.S. Army had "awarded" the LOGCAP IV contract to KBR. The Supreme Court granted certiorari, and then affirmed in part and reversed in part this Court's decision. (Docket Entry No. The D.C. 2007) (internal quotation marks omitted). As the Supreme Court has explained, "the raising of a federal question in the officer's removal petition constitutes the federal law under which the action against the federal officer arises for Art. United Bus. For these reasons, we do not agree with Carter that the above-described statement in any way undermined this Court's initial first-to-file analysis. 3:2009cv00632 - Document 44 (D. Or. Va. 2016). 2002). The plaintiffs claims are associated with acts taken under color of federal office. Schmit v. ITT F. Elec. Co. v. Dir. With this understanding in mind, we reiterate the conclusion of our initial decision in this case. Carter did not, however, contest the district court's decision to assess the first-to-file rule based on the facts as they existed at the time that the Carter Action was brought. We conclude that it does. All rights reserved. Id. We likewise review a denial of a motion for reconsideration under the deferential abuse of discretion standard. 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. , 744 F.3d at 351. The declaration, however, does not make clear whether the plaintiffs and Service Employees International performed the same functions as KBR. 1. If an employee's injury is covered by the Act, the employee generally cannot pursue a tort claim against his employer for the same injury. KBR argues that either the Defense Base Act or the combatant-activities exception to the Federal Tort Claims Act preempt the plaintiffs claims. Tex. Johnson v. United States , 170 F.2d 767, 770 (9th Cir. Presumably, the Supreme Court was aware of this textual detail in making the pronouncements that it did in Carter III. See United States ex rel. The email address cannot be subscribed. Carter then petitioned for certiorari, and the Supreme Court granted that petition. 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." FED. case opinion for us 5th circuit galen barker v. halliburton company kbr kbr technical services inc service employees international inc kellogg brown root services inc kellogg brown root international inc kellogg brown root kellogg brown root inc kellogg brown root de kellogg brown root kbr inc kbr inc. read the court's full decision on findlaw. Finally, the court explained that neither the Wartime Suspension and Limitations Act (WSLA) nor the principle of equitable tolling could toll the statute of limitations on the Carter Action's claims. Circuit recognized this by limiting preemption to contractor actions over which "the military retains command authority." WebService Employees International performed services for the U.S. Army under the Logistics Civil Augmentation Program (LOGCAP) IV contract. Another plaintiff, Andrade, submitted a Claim stating that she was a "Food Service Worker." 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 district court rejected this argument, and consequently denied Carter's proposed amendment. Courts have offered three main views. The result of this welcoming mindset informs everything we do and accomplish, and has earned the respect of the worlds most renowned institutions. We disagree. at 50712, 108 S.Ct. Carter resists this conclusion, based on unreasonable readings of certain statements from Carter III. WebKBR Technical Services, Inc., Overseas Administration Services, Ltd., and Service Employees International, Inc. (collectively, the "KBR defendants"), on June 8, 2009. 2d at 663. Do not close your browser or leave the NLRB BENJAMIN CARTER, Plaintiff - Appellant, v. HALLIBURTON CO.; KELLOGG BROWN & ROOT SERVICES, INC.; SERVICE EMPLOYEES INTERNATIONAL INC.; KBR, INC., Defendants - Appellees. An FCA violator may be held responsible for treble damages in addition to civil penalties. (Id. The Defense Base Act extends workers compensation coverage under the Longshore and Harbor Workers Compensation Act to "employees of American contractors engaged in construction related to military bases in foreign countries, and to foreign projects related to the national defense whether or not the project is located on a military base." {Kbr In Iraq} Work Values Interested in finding out if you are the type of person this company is looking for? Carter's proposed amendments, however, did not address the dismissals of the Maryland and Texas Actions, but instead centered on elucidating his damages theories with information that was available prior to the filing of the Carter Action. Fisher , 667 F.3d at 610. 2009) ). Third, courts determine whether the "private service contractor [was] integrated into combatant activities over which the military retains command authority." The record is similarly lacking in information needed for the court to examine and determine what KBR did to manage the work Service Employees International's employees, including the plaintiffs, did at the base. The plaintiffs allege that KBR negligently failed to "evacuate contractors" or "provide security measures," such as "communication of safety information and status updates, a means of evacuating Iraq when conditions became unreasonably dangerous, and protection from violent attacks." As such, the district court dismissed the Carter Action with prejudice. 1-5 at 49). 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. Id. 1948) ; Burn Pit Litig. 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. This policy argument offers no basis for disregarding the first-to-file rule's unambiguous statutory text. 12). 3729(a)(1). 1442(a)(1), to remove an action, even if the plaintiff's complaint raises no federal question, so long as the officer asserts a "colorable federal defense," Latiolais , 951 F.3d at 291. Service Employees International performed services for the U.S. Army under the Logistics Civil Augmentation Program (LOGCAP) IV contract. 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. I write separately to emphasize the narrow scope of that conclusion. Welcome to KBR.com. Aiello , 751 F. Supp. 4. (citation omitted). KBR subsequently petitioned the Supreme Court for certiorari. 3), is denied. In Rigsby, the Supreme Court considered whether a violation of the FCA provision mandating that relators file their complaints under seal could only be sanctioned with dismissal. Id. 2d 669, 683 (D. Md. 2d 639, 663 (S.D. at 4). Harris , 724 F.3d at 481. Welcome to the KBR First Quarter 2023 Earnings Conference Call. 33 U.S.C. KBR US48242W1062 KBR, INC. (KBR) Add to my list Report Summary Quotes Charts Ratings Company Financials Consensus Revisions Funds Transcript : KBR, Inc., Q1 2023 Earnings Call, May 01, 2023 05/01/2023 | 08:30am EDT Good morning, ladies and gentlemen. The plaintiffs claims arise from the work they performed under their employer's contract with the military and involve actions that took place on a military base. This procedure enables the government to investigate the matter, so that it may decide whether to take over the relator's action or to instead allow the relator to litigate the action in the government's place. 3730(b)(2). 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." 3. 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. at *812 & n.11. Facts that may arise after the commencement of a relator's action, such as the dismissals of earlier-filed, related actions pending at the time the relator brought his or her action, do not factor into this analysis. 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."). $ 16. Kevin CLOYD, et al., Plaintiffs, v. KBR, INC., Defendant. Discovery on these defenses will end August 27, 2021. WebWebsite: www.kbr.com Headquarters: Houston, TX Size: 10000+ Employees Founded: 1901 Type: Company - Public (KBR) Industry: Aerospace & Defense Revenue: $5 to $10 billion (USD) We deliver science, technology and engineering solutions to governments and companies around the world.
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