US Supreme Court favors Halliburton & KBR Inc. in lawsuit; whistle-blower to pursue case

The US Supreme Court has ruled in favor of Halliburton and KBR (Kellog Brown & Root Services) Inc. in a fraud lawsuit filed against them by a whistleblower. The whistleblower, who was a former employee of the company, has a chance to continue the case.

LATE FILING

Based on a report, the Supreme Court in its decision cited that whistleblower Benjamin Carter had been late in filing the fraud lawsuit against its former employer Halliburton and KBR Inc, which led to dismissal of the case. In a unanimous decision, all nine judges on Tuesday said that civil cases such as fraud allegations perpetrated against the United States during war time should be filed within six years. This is shortened to three years only if the government knew about the violation which only applies to criminal cases.

Either way, Carter, who worked for KBR, a contractor in Iraq in the early part of 2005, two years after the US-Iraq war started, filed a fraud case in 2011 yet under the False Claims Act, which is way too late. He cited that the companies had billed the US government for water purification services that were not carried out well or were not completed at all. Under the said Act, whistleblowers are allowed to sue on behalf of the federal state and receive a fraction of any proceeds in case the suit becomes successful.

HALLIBURTON & KBR

Halliburton, an American company which disconnected its relationship with KBR in 2007 was still implicated in the case. KBR billed the government for the said services at two sites but did not start providing water purification until May 2005, a source says.

Despite the court ruling, the case will still be continued as judges have sent it to lower courts. Carter's lawyer says they are decided on winning the lawsuit. KBR's lawyer meanwhile believes there is nothing to be discussed and they will ask the case to be dismissed.

In 2013, the Supreme court ruled in favor of Carter but KBR appealed in the fraudulent billing case.