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Military contractor case back to state court

Chief Justice John G. Roberts, Jr., late on Tuesday refused to delay a Fourth Circuit Court ruling that will require a military contractor in Iraq to defend in state court its actions in an incident that left four American workers dead after they were ambushed in the city of Fallujah. Roberts gave no explanation in denying the stay application in Blackwater Security et al v.Nordan et al.(06A396).. The Circuit Court decision can be found here.

In one of the most gruesome atrocities in the Iraq conflict, the four workers’ bodies were burned and dismembered, and two of the mutilated bodies were hung from a bridge. The four were working as security escorts for trucks carrying food supplies to a U.S. Army base. They got lost in Fallujah, and were attacked by armed insurgents on March 30, 2004.

A representative of the estates of the four men filed a lawsuit in state court in North Carolina, claiming wrongful death and fraud. They sued Blackwater, which had contracts to provide security and logistical support for private contractors in Iraq. The lawsuit also targeted Justin McQuown, their supervisor on the operation. The complaint asserted that the company did not live up to its promises to provide adequate security equipment and personnel support.

Blackwater had the case shifted to U.S. District Court, contending that the federal Defense Base Act preempted the state law claims. Blackwater then moved to dismiss the case, contending that the District Court had no jurisdiction because the claims could be pursued only before the Labor Department under the Defense Base Act. The District Court ruled that the case should not have been removed to federal court, and returned it to North Carolina courts. It did not rule on the motion to dismiss. Blackwater took the case on to the Fourth Circuit, arguing that the case should not be returned to state court. The Fourth Circuit disagreed, finding that it, too, lacked jurisdiction.

In asking the Chief Justice to stay the appeals court’s ruling, Blackwater said the outcome of the case could be affected directly by the coming Supreme Court decision in Osborn v. Haley (05-593), which is set for argument next Monday. The Osborn case involves the same jurisdictional issue, Blackwater argued. This is the question in Osborn that Blackwater cited: “Whether the court of appeals had jurisdiction to review the district court’s remand order, notwithstanding 28 USC 1447(d)?”.