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Huffington Post Acquires KBR’s Indemnity Clause, Authorization Came from Former Enron Exec

Through the Freedom of Information Act, The Huffington Post reported today that it has acquired the signed indemnity agreement between the United States Army and KBR (at the time known as Kellogg, Brown, and Root).

The Army official that signed the agreement at the insistence of the Houston-based private contractor was a former Enron executive. Thomas E. White was named secretary of the Army in 2001. He signed the agreement on March 19, 2003 after considering “the availability, costs and terms of private insurance to cover these risks, as well as the viability of self-insurance, and have concluded that adequate insurance to cover the unusually hazardous risks is not reasonably available.” His memo concluded that the use of the “indemnification clause in this contract will facilitate the national defense.”  There is no indication that KBR disclosed at the time of the contract-add any information or knowledge KBR had about the longstanding, widespread use of hexavalent chromium at Qarmat Ali, or any other specific hazard to the troops and other men on the ground at KBR’s work sites.

White resigned his position as secretary on April 23, 2003 amid questions about his ties to Enron Corp. He sold millions of dollars in stock in 2001 and claimed it was a requirement under government ethics rules. White and his wife were also investigated by the Pentagon’s inspector general for using a military jet for personal travel.

The language of the no-bid, cost-plus with award fee contract relates to the bellwether trial against KBR in Oregon where 12 veterans were awarded more than $85 million in damages stemming from KBR’s knowing exposure of the men to hexavalent chromium at Qarmat Ali. The additional “bailout” agreement, which was demanded by KBR after initially grabbing the multi-billion dollar no-bid, cost-plus award fee contract for Iraqi oilfield reconstruction, purports to shield the company from various liabilities, including financial costs associated with unusually hazardous risks including “sudden or non-sudden release of hydrocarbons or other toxic or hazardous substances or contaminants into the environment.”

KBR is now pursuing the government to pay the $85 million verdict and more than $15 million in legal fees, as well as the damages that may be owed to the more than 150 veterans whose cases are still awaiting trial. These lawsuits involve soldiers from Indiana, West Virginia and the UK.

Doyle stands behind these veterans and their fight for justice. Clearly this is simply another effort by KBR to shirk their responsibility for their misconduct.

Former VA Researcher Testifies Before House Committee about Burn Pit Research Cover-up

A former Veterans Affairs researcher testified before the House Committee on Veterans Affairs this week about the organization’s efforts to minimize research that supports claims of Gulf War Illness and illness from burn pit exposure.

Steven Coughlin was an epidemiologist in the VA’s public health department until he resigned over a request to retract his claims concerning the concealed information and admit he had made a mistake. Coughlin also said “if the studies produce results that do not support the office of public health’s unwritten policy, they do not release them. “ He also testified about a panel of outside experts hired to study neurological connections to Gulf War illness for the Institute of Medicine. Coughlin maintains the panel was stacked in favor of those who believe Gulf War illness is psychological rather than neurological. Coughlin added “anything that supports the position that Gulf War illness is a neurological condition is unlikely to ever be published.”

Coughlin’s allegations were countered by Victoria Davey, chief officer of VA’s office of public health and environmental hazards. Davey never directly addressed the accusations levied against the VA but talked about the “cutting-edge” research the VA has conducted.

Coughlin was backed by Lea Steele, a researcher at the Veterans Health Research Program at Baylor University who said the VA has not managed an effective program. Steele echoed Coughlin when she said “studies consistently show Gulf War illness is not due to war trauma.”

Steele referenced the panel Coughlin viewed as stacked in favor of Gulf War illness as a psychological illness. The panel studied veterans from the past 20 years rather than a segment of Gulf War veterans. The symptoms of this broad group were lumped together so that neither cause nor treatment for “chronic multisymptom illness” could be found. Steele likened this to “medical malpractice”.

A Gulf War veteran and appointed member of the Congressionally Directed Gulf War Illness Research Medical Program, Anthony Hardie, stated the testimony confirms what veterans have said for years and “there are staff within VA who are working against Gulf War veterans”.

Coughlin touched on a study of more than 2,000 Iraq and Afghanistan veterans who admitted they had considered suicide during the previous two weeks. Nobody from the VA reached out to them.

Coughlin’s complaints were met with no action leading him to tenure his resignation saying continuing to work for the VA was “against my conscience.”

Another KBR Ploy Rejected: KBR’s Motion for Contempt Denied by Oregon Judge

One of several motions heard by Judge Papak last month in Oregon Federal Court involved yet another attempt to lash out at the attorneys who proudly represent the veterans of Qarmat Ali. A jury awarded a bellwether group of twelve of the 162 veterans a total $85.2 million in November for KBR’s misconduct in exposing the veterans to sodium dichromate. With an award of nearly $7.1 million for each veteran, KBR’s own potential financial exposure to the remaining Veterans exceeds $1 billion if the remaining verdicts remain consistent with the bellwether trial verdict. Click here to read a synopsis of that trial and verdict.

Having lost the trial in front of an Oregon jury, KBR and its counsel have continued to try and shift blame for misconduct everywhere but towards their own actions. The topic at the center of the latest legal wrangling brought on by KBR’s attorneys concerns the limited ‘gag order’, generally restricting the parties’ rights to comment to the verdict. The order was effective throughout the trial, partially lifted after the verdict, and then fully lifted on December 19, 2012.

KBR complained about a post-trial email communication featuring plaintiffs’ attorney Mike Doyle. The email contained an embedded video narrated by Doyle and referenced the jury verdict. KBR argued the video violated the limited ‘gag order’.

Judge Papak rejected KBR’s latest attacks, confirming that the “statements were clearly not in violation of the previously imposed restrictive order”, and the communication “disclosed no information material to the parties’ dispute not already in the public record.”

We are pleased with the decision regarding yet another side-show motion by a company unwilling to take responsibility for their misconduct and the life changing impacts to the Qarmat Ali Veterans.

West Explosion Offers Look into American Workers’ Dangerous Work Conditions

Salon.com published a story addressing the dangerous work conditions millions of Americans endure every day. The article states the government documents 4,500 workplace deaths every year at a cost of $250 billion. Texas hosts “the nation’s highest number of workplace fatalities”.

West, Texas being the location of a catastrophic explosion is not happenstance. Texas promotes “antipathy toward regulations” and does not require workers compensation insurance be carried by businesses operating within the state. According to the New York Times, Texas has “more than three times the number of accidents, four times the number of injuries and deaths, and 300 times the property damage costs” as Illinois. The fertilizer plant where the blast originated had not been inspected by OSHA since 1985.

The author of the article, David Sirota, attributes this lack of concern at the number of workers who die every year and the lack of reaction to “a deregulated economy whose laws are written by corporate interests”. He cites those corporate interests as the roadblock for safety regulation and enforcement who uses politicians and their campaigns to ensure they don’t spend additional dollars on making workplaces safer.

NPR released an article recently addressing the large number of worker accidents in Texas and the demographics of the employees. Many are undocumented immigrants and exploited by companies seeking cheap, tax-free labor. This contributes to a corporate environment expecting optimized profits while maintaining low labor costs and the bare minimum safety regulations.

Doyle has represented clients and their families over the years that have been paralyzed, maimed, and killed as a result of poor workplace conditions. We stand behind them in their fight against corporate entities whose greed converts a workplace death to a cost of doing business.

Doyle Introduces New Burn Pit Resources

Doyle Dennis Avery LLP is pleased to announce new resources for military members and their families to provide information about burn pit exposure. From 2003 to 2013, thousands of military members were exposed to toxic materials burned on military bases with serious health consequences.

What’s the Background on Burn Pit Litigation?

Government contractors including Halliburton and KBR were given government contracts to dispose of waste on military bases in both Iraq and Afghanistan. The contractors improperly burned material in large open-air burn pits operated close to living and working areas. The result: Soldiers and deployed military members were exposed to harmful fumes and carcinogenic particles.

Doyle Dennis Avery LLP is a leading burn pit law firm, representing military personnel who were negligently exposed to toxic substances. More than 100 cases have been filed throughout the United States against military contractors. In one case, a jury ruled in favor of 12 soldiers (represented by Doyle) against military contractor KBR in an $81 million judgment.

Every case is different and those who may have been exposed need to understand the risks; the signs and symptoms of illnesses; and their options if they fall ill. Doyle Dennis Avery LLP has prepared interactive resources for military members and their families. The interactive information at Burn Pit Facts explains:

  • Where burn pits were located: There were 251 burn pits in Iraq and 22 in Afghanistan as of 2010. The largest was at Joint Base Balad.
  • Who was exposed: There were 25,000 personnel on some of the bases where burn pits were located.
  • What was burned: More than 100 tons of potentially hazardous materials were burned daily at some of the bases in Iraq and Afghanistan. The materials being burned included heavy metals, medical waste, biohazard materials, banned chemicals, plastic water bottles, asbestos, tires, PVC pipes, pesticides and batteries.
  • The health consequences of burn pits: Health effects include respiratory disorders, neurological disorders, cardiopulmonary disorders, skin problems, autoimmune conditions, and cancers. The fallout has been compared with Agent Orange.
  • What your options are: Burn pit lawsuits were first filed in 2007. Today, there are a number of cases on file and a multi-district litigation established to manage the litigation.

Doyle is here to help victims who may have been exposed and family members of those affected. In addition to the facts page, you can also find more information, resources, and assistance by visiting our pages on:

  • Burn Pit FAQ
  • Burn Pit Resources
  • Legal Help for Burn Pit Victims

Our attorneys offer free consultations on burn pit claims. Call today to schedule a consultation.

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