Federal Appellate Court Issues Significant Ruling in Contractor on the Battlefield Case

The Eleventh Circuit Court of Appeals affirmed in its ruling on Tuesday, June 30, 2009 in Carmichael vs. KBR (NYSE:KBR) that the Political Question Doctrine bars the plaintiff�s suit alleging KBR is responsible for civil liability related to its activities as a contractor to the U.S. military under the Logistics Civil Augmentation Program (�LOGCAP�) contract. The court affirmed in this case that the military, not civilian contractors, decides and directs the activities of contractors in battlefield situations and the Political Question Doctrine �excludes from judicial review those controversies which revolve around policy choices and value determinations constitutionally committed for resolution to the halls of Congress or the confines of the Executive Branch.� In this case, the Eleventh Circuit held that adjudicating the plaintiff�s claims would require re-examination and second-guessing surrounding the conduct of a military operation during a wartime environment.

�This ruling confirms that contractors conducting wartime operations under the direction of the U.S. military can enjoy significant protections from tort lawsuits arising out of activities directed by the military,� said Andrew D. Farley, KBR Senior Vice President and General Counsel. �Contractors facing these types of suits now have a useful appellate court precedent which affirms that significant tort protections exist where the contractors are executing military directed missions.�

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services and civil infrastructure sectors. The company offers a wide range of services through its Downstream, Government and Infrastructure, Services, Technology, Upstream and Ventures business segments. For more information, visit www.kbr.com.

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