OWEN, Circuit Judge:
This interlocutory appeal arises out of the deaths of Steven Fisher and Timothy Bell, who were civilian drivers in a United
In the district court, this case was considered with another case, Lane v. Halliburton, which arose out of injuries sustained by another KBR employee, Reginald Cecil Lane, who was attacked the same day in Iraq while driving a truck in a supply convoy. Lane was joined in his suit against KBR by his guardian and conservator and the representative of the estate of a family member. The district court's order ruling that the DBA did not apply was entered in both cases, and this interlocutory appeal originally included the Fisher as well as the Lane plaintiffs. The plaintiffs in Lane reached a settlement agreement with KBR while this appeal was pending, and the appeal has been dismissed as to all the Lane plaintiffs. The Fisher claims remain pending.
We have previously considered an appeal in this case, Lane v. Halliburton.
In December 2001, the United States Army awarded KBR a contract pursuant to its Logistics Civil Augmentation Program (LOGCAP). As we explained in the prior appeal before this court: "Under LOGCAP, the Army is authorized to employ `civilian contractors to perform selected services in wartime to augment Army forces.' U.S. Army Reg. 700-137, at 1-1 (Dec. 16, 1985)."
Pursuant to its responsibilities under the contract, KBR and its employees conducted supply convoy missions in Iraq under the supervision of the Army. Both the LOGCAP III contract and the task orders that defined KBR's responsibilities in Iraq provided that the Army would maintain responsibility for the safety of KBR convoys
The events giving rise to this litigation occurred primarily on April 9, 2004, in Iraq. The record includes evidence that KBR was on notice that April 9 was a day that would present an increased risk of insurgent violence and that KBR employees were concerned about the levels of violence that their convoys were facing. For example, KBR security calendars noted April 9, 2004, marked the first anniversary of the United States' presence in Baghdad, and the weekend of April 9 through April 11 coincided with a Shia commemorative event. On April 7, a KBR security manager e-mailed KBR's theater project manager and expressed his concern that convoys could face serious security risks on April 9 and 10. On April 8, several KBR convoys were attacked by insurgents, and internal KBR e-mails suggest KBR employees were aware the security situation with respect to their convoys had deteriorated. Some of the e-mails expressed doubt the military could adequately protect KBR convoys under current conditions, and KBR management, on the evening of April 8, debated the merits of sending out convoys on April 9. KBR ultimately resolved to continue convoy operations.
The suit below focused on the drivers of fuel tankers in two separate supply convoys on April 9—the Hamill convoy and the Longstreet convoy. Both convoys were traveling between Camp Anaconda and Baghdad International Airport (BIAP) when they were attacked by Iraqi insurgents. Plaintiffs' convoys were not the only KBR convoys to suffer insurgent attacks that day. There is evidence in the record, for example, that, before the Hamill convoy had even departed Camp Anaconda on its mission to supply BIAP, other KBR convoys in the vicinity of the intersection of two supply routes—MSR Sword and MSR Tampa—were receiving small arms fire from insurgents. Internal KBR e-mails suggest that KBR executives who had authority to halt convoy operations were aware of these attacks before the Hamill convoy left Camp Anaconda.
The Hamill convoy ultimately proceeded from Camp Anaconda toward BIAP via MSR Sword. As the Hamill convoy was traveling down MSR Sword toward its intersection with MSR Tampa, insurgents attacked the convoy with improvised-explosive devices, rocket-propelled grenades, and machine-gun fire. The Longstreet convoy was en route from BIAP to Camp Anaconda on MSR Tampa when it, too, fell under attack by insurgents wielding rocket-propelled grenades, small arms, and rocks. The attacks killed seven KBR drivers and injured at least ten others. As a result of the attacks, KBR suspended its convoy operations for April 10.
Plaintiffs subsequently filed suit against KBR raising a number of claims, including negligence and fraud. Plaintiffs based their negligence claims primarily on their allegations that KBR, in its zeal to fulfill its role providing logistical support services to the United States military in Iraq, allowed Plaintiffs' convoys to proceed on these missions despite knowing insurgent
The district court dismissed Plaintiffs' suit after determining it was nonjusticiable pursuant to the political question doctrine.
KBR subsequently moved to dismiss Plaintiffs' claims pursuant to FED.R. CIV. P. 12(b)(1), arguing that the district court lacked subject-matter jurisdiction over the claims because the DBA provided Plaintiffs' exclusive remedy for their injuries. The district court treated the motion as a motion for summary judgment and denied it after determining genuine issues of material fact existed as to whether the DBA covered Plaintiffs' injuries. The district court certified its order for immediate interlocutory appeal pursuant to 28 U.S.C. § 1292(b), and we granted KBR leave to appeal from the district court's order. The Plaintiffs filed a conditional cross-petition in this court, urging that we hold that the DBA does not preempt the fraud in the inducement claim.
In the proceedings below, KBR invoked the DBA's exclusivity provision in a Rule 12(b)(1) motion, claiming the provision deprived the district court of subject-matter jurisdiction over Plaintiffs' state-law causes of action. The district court treated KBR's motion as a motion for summary judgment and denied the motion after determining genuine issues of material fact exist as to whether the DBA covers Plaintiffs' injuries. On appeal, KBR asserts the district court erred when it treated KBR's motion as a motion for summary judgment. KBR stresses the importance of distinguishing between these two types of motions in this case because the district court premised its denial of KBR's motion on the existence of fact questions with respect to whether Plaintiffs' injuries fall within the coverage of the DBA. Had the district court properly treated its motion as a Rule 12(b)(1) motion, KBR argues, the court would have resolved those fact issues and could not have denied the motion simply because fact questions exist.
We disagree with KBR's assertion that the district court erred by treating
We ordinarily review a district court's grant of summary judgment de novo, applying the same standards as the district court.
The DBA is a general reference statute that extends workers' compensation coverage under the Longshore and Harbor Workers' Compensation Act (LHWCA) 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
We have explained that the DBA "was adopted at the request of the Secretary of War in order to save the previous heavy expense of providing its contractors with insurance of such employees on the basis of tort liability and full accident insurance."
Here, KBR argues Plaintiffs' injuries are compensable under the DBA and Plaintiffs thus cannot proceed with their tort claims against KBR. As the district court properly recognized, whether Plaintiffs' claims come within the DBA is resolved by determining whether Plaintiffs suffered an "injury" as that term is defined by the DBA through reference to the LHWCA. The LHWCA provides:
After reviewing the briefs and arguments of the parties and amici, and the district court's order, we believe that the question of whether the DBA bars Plaintiffs from proceeding with their state tort claims against KBR turns on three issues. First, we will consider whether Plaintiffs' injuries were injuries "caused by the willful act of a third person directed against [Plaintiffs] because of [their] employment." Second, we will address whether, if Plaintiffs' injuries do fall within the scope of the DBA's coverage as the result of willful acts of third parties directed against them because of their employment, Plaintiffs can nevertheless proceed with their intentional tort claims against KBR under the theory that KBR knew the insurgent attacks were substantially certain to occur and failed to protect Plaintiffs from the attacks. Third, we will consider whether coverage of Plaintiffs' injuries under the DBA precludes Plaintiffs from pursuing their fraud claims against KBR.
We begin with the definition of "injury . . . arising out of and in the course of employment" as "an injury caused by the willful act of a third person directed against an employee because of his employment."
We first address the scope of the requirement that a third party act against an employee "because of his employment." As an initial matter, we note that in the typical case the question of whether a third party acts against an employee "because of his employment" will present a question of fact
As in any case involving the interpretation of a statute, we begin with the statute's language.
On this point we note that Congress patterned the LHWCA on the New York Workers' Compensation Law of 1922.
The "because of" requirement in § 902(2) is simply a codification of this principle: an employee is not entitled to compensation when a third party acts for purely personal reasons only coincidentally related to the employee's work.
Decisions by the few courts that have had the opportunity to interpret and apply § 902(2)'s "because of" requirement reinforce this conclusion. In Maryland Casualty Co. v. Cardillo,
Similarly, in Penker Construction Co. v. Cardillo,
On the other hand, in Kirkland v. Director, Office of Worker's Compensation Programs,
Turning to the instant case, the facts relevant to the issue of whether the Iraqi insurgents attacked Plaintiffs "because of" Plaintiffs' employment are undisputed. There is no dispute, for example, that insurgents attacked Plaintiffs while Plaintiffs were on the job fulfilling a primary job responsibility: providing logistical support services to the United States Army by driving fuel trucks between United States' military installations in Iraq. There is also no dispute that, in addition to attacking Plaintiffs, insurgents attacked a number of other targets, including coalition forces, Iraqi police stations, Iraqi citizens applying for positions with the Iraqi police, and other targets related to the government and infrastructure of Iraq. April 9, 2004, marked the first anniversary of the United States' presence in Baghdad, and the parties do not dispute that insurgent attacks on that day were wide-ranging.
In considering this evidence, the district court concluded that "ample evidence" existed from which one could infer that Plaintiffs "were assaulted not because they drove fuel trucks for [KBR], but because they were American on the first day of Arabeen, the one year anniversary of the United States' presence in Baghdad." In addition to pointing to the evidence that insurgents conducted attacks on people and facilities unaffiliated with KBR, Plaintiffs also note that, although they ordinarily drove white trucks with red markings in order to advertise their civilian status, they were driving green camouflaged vehicles at the time they were attacked. Plaintiffs appear to argue that insurgents could have mistaken them for members of coalition forces in Iraq, rather than KBR truck drivers, and that they therefore were not attacked because of their employment as truck drivers.
We cannot agree with the district court's assessment of the inferences that can be drawn from these facts, however, or with Plaintiffs' attempt to manufacture a fact question on this issue by pointing to insurgent attacks on other targets. The only plausible inference to be drawn from the
The United States argues in its amicus brief, and we agree, that:
This construction of the Act is buttressed by well-understood principles regarding workers' compensation schemes. As a leading workers' compensation treatise recognizes: "the clearest ground of compensability in the assault category is a showing that the probability of assault was augmented either because of the particular character of claimant's job or because of the special liability to assault associated with the environment in which he or she must work."
We think it self-evident that driving trucks in Iraq in support of United States military operations augmented the probability that Plaintiffs would fall victim to an attack by insurgent forces, and that the character of Plaintiffs' employment—providing support services to an occupying military force—increased the likelihood that Plaintiffs would be targeted by forces opposed to the United States' presence in Iraq in 2004. Similarly, the environment
Plaintiffs' failure to acknowledge the connection between their employment and the attacks of April 9 stems from their overly narrow conception of the nature of their employment. Plaintiffs were not simply employed as truck drivers; rather, Plaintiffs were driving trucks in support of the American coalition's rebuilding and security efforts in Iraq. All of the evidence pointed to by Plaintiffs and the district court establishes that insurgents were attacking targets related to those efforts. Under these circumstances, there can be no reasonable dispute that a clear connection exists between Plaintiffs' employment and the insurgents' attacks on Plaintiffs' convoys. Accordingly, the attacks occurred "because of" Plaintiffs' employment.
We next consider the requirement of the DBA that an employee's injuries be "caused by" the third party's acts. Plaintiffs appear to argue that their injuries were not caused by the insurgent attacks but by KBR's failure to halt convoy operations once it was aware that attacks on other convoys were occurring. Plaintiffs invoke the "familiar theory of tort law that permits recovery even though another actor or cause intervenes to be the direct cause of injury."
The obvious infirmity in Plaintiffs' argument is that the question of whether insurgents "caused" their injuries concerns the scope and effect of a congressionally enacted workers' compensation scheme. Even if KBR's actions or inactions were a cause of the death of, or injuries to, its employees, the insurgents' actions constituted a cause as well. The attacks by insurgents and resulting injuries fall squarely within the statutory language "injury caused by the willful act of a third person directed against an employee because of his employment."
Finally, in the interest of completeness, we will comment on an argument Plaintiffs' counsel raised at oral argument. Counsel suggested that the definition of injury as "an injury caused by the willful act of a third person directed against an employee because of his employment" is not applicable in a case in which the third party's acts have resulted in the death of the employee. The LHWCA clearly addresses and rejects this argument, however, when it provides that "[d]eath as a basis for a right to compensation means only death resulting from an injury."
In sum, Plaintiffs here suffered injuries due to intentional torts committed by third parties because of Plaintiffs' employment. It is a matter of common sense that when insurgent forces in Iraq attack an Armyled fuel-supply convoy, the insurgents are attacking the convoy because of its role in supporting the Army's operations in that country. Plaintiffs, as drivers of trucks in such convoys, suffered injuries because of their role in those operations. The injuries qualify for coverage under the DBA.
Were we to construe the DBA as the Plaintiffs urge us to do, many of those injured by insurgent attacks in Iraq or other battle zones would be without a remedy. If the DBA did not apply because the worker was killed or injured by intentional acts of third parties because he was an American, and there was no negligence or other fault on the part of the employer, there would be no meaningful remedy. This, patently, is not what Congress intended.
We next consider whether Plaintiffs can proceed with their intentional-tort claims against KBR. We conclude the DBA bars Plaintiffs from pursuing such claims in this case.
It is a recurring theme in workers' compensation law that injuries arising from an employer's intentional tort do not fall within the scope of coverage for compensation purposes. A number of courts have held in the LHWCA context, for example, that an employee can sue his employer if the employer committed an intentional tort.
The facts of this case do not fit the mold of the type of intentional tort that some courts heretofore have recognized as an exception to coverage under the LHWCA. Plaintiffs have not challenged the district court's determination below that there is no evidence in the record "support[ing] the proposition that [KBR] desired that any of the drivers be injured or killed in an attack by Iraqi insurgents." Accordingly, this case does not require us to determine whether the DBA includes within its scope injuries caused by an employer's intentional assault of an employee with the specific desire to injure the employee.
Plaintiffs did argue to the district court below, however, that KBR committed an intentional tort by failing to act to protect Plaintiffs from "substantially certain" injury. Plaintiffs observed in their briefing to the district court, for example, that the RESTATEMENT (SECOND) OF TORTS defines "intent" to mean "that the actor desires to cause consequences of his act, or that he believes that the consequences are substantially certain to result from it."
Moreover, we agree with the reasoning of the United States' amicus brief that allowing an injured employee to recover from his employer under this theory of intentional-tort liability would inject into the DBA's workers' compensation scheme an element of uncertainty at odds with the statute's basic purpose: providing prompt relief for employees, and limited and predictable liability for employers. Unlike a standard that focuses on an employer's specific desire and intent to harm an employee, the substantially certain standard is an objective standard belonging to a group of tort concepts that focuses on the probability that a certain result will occur. As the Restatement observes, negligence, recklessness, and intent premised on substantial certainty are all points on a continuum of probability:
Whether an employee's injury is "substantially certain" to occur thus depends on the probability that the injury will follow from the employer's acts.
The difficulties in using such a probabilistic standard to determine the scope of the DBA's exclusivity provision should be obvious. An employer, immune from tort liability for negligent or reckless conduct leading to an injury covered by the DBA, would have to conduct its business with an eye toward the possibility that it could face tort liability for actions that nevertheless cross the line from reckless conduct to conduct undertaken with the knowledge that harm to an employee is substantially certain to result. Consider this case as an example. At what point could we say that KBR had knowledge it was "substantially certain" that insurgents would attack Plaintiffs' convoys? Was it when KBR convoys were attacked in the days leading up to April 9? When KBR's security team alerted executives to the possibility of widespread violence on that day? When the first convoys to deploy on April 9 fell under attack? Is it even possible for an employer to be substantially certain that a third party will attack an employee? We think these questions illustrate the lack of predictability that would arise under the DBA's workers' compensation scheme if we allowed employees to proceed with tort claims under the "substantially certain" theory of liability even though their injuries qualify for coverage under the DBA as injuries resulting from the willful acts of third parties.
In sum, we hold that coverage of an injury under the DBA precludes an injured employee from recovering from his employer under a "substantially certain" theory of intentional-tort liability. On this point we believe it important to again clarify what is not at issue in this case. We are not confronting a situation in which the employer personally assaulted an employee. Nor are we confronting a situation in which an employer has conspired with a third party to inflict an assault on the employee. Nor does this case present a situation in which an employer has subjected his employee to the acts of a third party with the specific desire that the third party harm the employee. We see no reason to determine whether injuries arising in such scenarios would be covered by the DBA. Under the circumstances of this case, however, the DBA's remedy is exclusive.
Finally, Plaintiffs argue that, even if the DBA covers their injuries and thus provides their exclusive remedy for those injuries, they should be allowed to proceed with their fraud claims against KBR. The Plaintiffs base their fraud claims on allegations that KBR, during its recruitment efforts, misled them to believe that they were noncombatants who would never be sent into combat. The district court, in its resolution of a separate case that was decided with Plaintiffs' cases, concluded that the DBA does prevent an employee from pursuing a fraud claim to recover damages for an injury covered by the DBA.
We agree with the district court. Although Plaintiffs argue that their fraud claims accrued as soon as they entered into an employment relationship with KBR, this argument misses the point. The Plaintiffs do not seek rescission of their employment agreements. Rather, they seek damages for injuries that are compensable under the DBA. It is a generally accepted proposition of workers' compensation law that an employer's deceit that precedes and helps produce an otherwise compensable injury merges into that injury for purposes of compensation coverage.
Because we conclude that all of the Plaintiffs' state-law claims are barred by the DBA, we do not consider whether we have jurisdiction in this interlocutory appeal to consider KBR's challenges to other orders of the district court, which include rulings regarding the political-question issue and other defenses. Whether this case presents a nonjusticiable political question is a significant issue, particularly since KBR sought to have the role of the United States considered under section 33.004(I) of Texas Civil Practice and Remedies Code not as a party to the litigation, but as a responsible third party. Chapter 33 of that Code allows a defendant to designate a responsible third party and, once the party is so designated and there is evidence sufficient to submit a question to the jury regarding the conduct of the party, requires the trier of fact to determine the percentage of responsibility for a plaintiff's harm attributable to the plaintiff, the defendant, any settling persons, and the responsible third party.
For the above reasons, we VACATE the district court order on the issue certified for appeal in No. 10-20371 and REMAND the case with instructions to dismiss Plaintiffs' state tort claims. We DISMISS KBR's appeal in No. 10-20202 as MOOT.
Grillo, 540 A.2d at 754.