Bixby v. KBR, INC.

748 F. Supp. 2d 1224, 2010 WL 4296637
CourtDistrict Court, D. Oregon
DecidedOctober 22, 2010
DocketCV 09-632-PK
StatusPublished
Cited by28 cases

This text of 748 F. Supp. 2d 1224 (Bixby v. KBR, INC.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bixby v. KBR, INC., 748 F. Supp. 2d 1224, 2010 WL 4296637 (D. Or. 2010).

Opinion

AMENDED OPINION AND ORDER

PAPAK, United States Magistrate Judge:

Plaintiffs Rocky Bixby, Lawrence Roberta, Scott Ashby, Charles Ellis, and Matthew Hadley filed this action against defendants KBR, Inc., Kellogg, Brown & Root Service, Inc., KBR Technical Services, Inc., Overseas Administration Services, Ltd., and Service Employees International, Inc., on June 8, 2009. On September 8, 2009, plaintiffs amended their complaint, adding Carlos Avalos, Jesus Bruno, Colt Campredon, Stephen Foster, Byron Greer, Kelly Hafer, Dennis Jewell, Stephen Mueller, Vito Pacheco, John Rydquist, and Kevin Stanger as additional plaintiffs. Plaintiffs amended their pleading a second time on February 2, 2010, adding Ronald Bjerklund, Adanrolando Garcia, Brian Hedin, Lewis Martin, and Charles Seamon as additional plaintiffs. In their second amended complaint, plaintiffs allege defendants’ liability for negligence and for fraud arising out of plaintiffs’ exposure to sodium dichromate and resultant hexavalent chromium poisoning while stationed as Oregon National Guardsmen in Iraq and assigned to duty at the Qarmat Ali water plant in 2003.

Now before the court is defendants’ motion (# 45) to dismiss for lack of subject-matter jurisdiction. I have considered the motion, oral argument on behalf of the parties, and all of the pleadings on file. For the reasons set forth below, the motion is denied.

LEGAL STANDARDS

The federal courts are courts of limited jurisdiction. See, e.g., Exxon Mobil Corp. v. Allapattah Servs., 545 U.S. 546, 552, 125 S.Ct. 2611, 162 L.Ed.2d 502 (2005), citing Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). As such, the courts presume that causes of action “lie[ ] outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction.” Kokkonen, 511 U.S. at 377, 114 S.Ct. 1673; see also, e.g., Vacek v. United States Postal Serv., 447 F.3d 1248, 1250 (9th Cir.2006).

A motion under Federal Civil Procedure Rule 12(b)(1) to dismiss for lack of subject-matter jurisdiction may be either “facial” or “factual.” See Safe Air v. Meyer, 373 F.3d 1035, 1039 (9th Cir.2004), citing White v. Lee, 227 F.3d 1214, 1242 (9th Cir.2000). In a facial attack on subject-matter jurisdiction, the moving party asserts that a plaintiffs allegations are insufficient on their face to invoke federal jurisdiction, whereas in a factual attack, the moving party disputes the factual allegations that, if true, would give rise to subject-matter jurisdiction. Where a defendant raises a facial challenge to subject-matter jurisdiction, the factual allegations of the complaint are presumed to be true, and the motion may be granted only if the plaintiff fails to allege an element necessary for subject matter jurisdiction. See Savage v. Glendale Union High Sch., 343 F.3d 1036, 1039 n. 1 (9th Cir.2003). By contrast, where a defendant raises a factual challenge to federal jurisdiction, “the *1230 district court may review evidence beyond the complaint without converting the motion to dismiss into a motion for summary judgment,” Safe Air v. Meyer, 373 F.3d at 1039, citing Savage, 343 F.3d at 1039 n. 2, and “need not presume the truthfulness of the plaintiffs allegations,” id., citing White, 227 F.3d at 1242.

“Defective allegations of jurisdiction may be amended, upon terms, in trial or appellate courts.” 28 U.S.C. § 1653. It is improper to dismiss an action based on a defective allegation of jurisdiction without leave to amend “unless it is clear, upon de novo review, that the complaint could not be saved by amendment.” Snell v. Cleveland, Inc., 316 F.3d 822, 828 n. 6 (9th Cir.2002), citing Lee v. City of Los Angeles, 250 F.3d 668, 692 (9th Cir.2001).

FACTUAL BACKGROUND

I. The Parties

The plaintiffs are current or former members of the Oregon National Guard who were allegedly injured by exposure to sodium dichromate while deployed in Kuwait and Iraq in 2003.

Defendant KBR is a corporation organized under the laws of the State of Delaware with its principal place of business in Houston, Texas. KBR is the corporate parent of defendants Kellogg Brown & Root Services, Inc., KBR Technical Services, Inc., Overseas Administration Services, Ltd., and Service Employees International, Inc.

Defendant Kellogg Brown & Root Services, Inc. (“KB & RS”), is a corporation organized under the laws of the State of Delaware with its principal place of business in Houston, Texas. KB & RS is the operating company and contracting entity for KBR’s Government and Infrastructure (“G & I”) business unit, which is an engineering, construction, and services contractor for public sector and private clients. This is the entity that directly contracted with the United States Government to provide logistical support to the military in the Middle East.

Defendant KBR Technical Services, Inc. (“KBRTS”), is a corporation organized under the laws of the State of Delaware with its principal place of business in Houston, Texas. KBRTS is an employment company that hires individuals who perform work domestically and abroad for KBR-related companies.

Defendant Overseas Administration Services, Ltd. (“OAS”), is a corporation organized under the laws of the Cayman Islands with its principal place of business in Dubai, United Arab Emirates. OAS is an employment company that hires employees who perform work abroad under contracts awarded by various clients to KBR-related companies.

Defendant Service Employees International, Inc. (“SEI”), is a corporation organized under the laws of the Cayman Islands with its principal place of business in Dubai, United Arab Emirates. SEI is an employment company that hires employees who perform work abroad under contracts awarded by various clients to KBR-related companies.

II. Underlying Facts

On March 3, 2003 — before combat operations began in Iraq — the U.S. Army Corps of Engineers entered into Contract No. DACA63-03-D-0005 (also known as the “Restore Iraqi Oil” or “RIO” contract) with KBR. Under the RIO contract, KBR and/or its subsidiaries agreed to provide *1231 services to the U.S. military in connection with efforts to restore the infrastructure underlying the Iraqi oil industry. Also under the RIO contract, the U.S. Army Corps of Engineers issued various “task orders” for KBR to perform.

Combat operations in Iraq began on March 19, 2003. On March 20, 2003, the Corps of Engineers issued “Task Order 3,” which governed the services to be provided by KBR and its subsidiaries at Qarmat Ali and other facilities. Under Task Order 3, the U.S, military would declare a given worksite to be “benign” before KBR would begin operations there. 1

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Cite This Page — Counsel Stack

Bluebook (online)
748 F. Supp. 2d 1224, 2010 WL 4296637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bixby-v-kbr-inc-ord-2010.