Federal Court Hears Arguments in Workers’ Compensation Claim

A federal appeals court in Portland, Oregon, heard arguments on May 4, 2015, in a dispute involving 12 national guardsmen who were injured while serving in Iraq. The guardsmen, all from Oregon, were providing security at a water treatment plant in Iraq in 2003 when they were exposed to dangerous levels of the carcinogen hexavalent chromium, a substance found in the anti-corrosive sodium dichromate. In testimony at trial, the injured guardsmen told the court that they became aware of the so-called “chrome nose,” bleeding known to be caused by exposure to the toxic substance, and reported it to KBR, the contractor on the job. KBR, a former subsidiary of Halliburton, apparently dismissed their ailments as sand allergy and ordered them back to work.

A federal jury returned a verdict against KBR, finding them responsible for both economic and punitive damages. The lawsuit was filed in Oregon, and KBR subsequently asked the court to dismiss the claim for lack of jurisdiction, arguing that KBR is located in Texas, the injuries occurred in Iraq, and there is no other connection to Oregon other than it being the residence of the injured parties.

The trial court rejected KBR’s motion to dismiss, granting final judgment to the guardsmen. KBR then appealed to the 9th Circuit Court of Appeals.

Attorneys for KBR cited a U.S. Supreme Court case that based jurisdiction on “contacts created by the defendant.” They argued to the court that, because the injuries did not occur in Oregon, the only thing tying KBR to Oregon is the fact that the plaintiffs resided there before and after their injuries. They contended that simply feeling the effects of injuries admittedly caused by KBR in the state of Oregon was not enough to trigger jurisdiction, that KBR would have to create its own contacts for that to happen.

Appeals Court Judge William Fletcher challenged that assertion, saying that “clearly there is a connection with the state of Oregon.” He noted that people from Oregon had been hurt, so there was clearly a connection.

A decision is expected later this year.

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