4th Circ. Affirms $19M KBR Loss In Army Contract Row

Law360, New York (November 10, 2011, 5:14 PM EST) -- The Fourth Circuit on Thursday affirmed a $19 million award to subcontractor Paul Morrell Inc. in its suit accusing KBR Inc. of inducing it to accept reduced payments for military food services in Iraq.

In an unpublished opinion, a three-judge panel affirmed a Virginia federal court's determination that Paul Morrell was justified in relying on KBR's alleged misrepresentations in taking the reduced amount from the former Halliburton Co. unit. The panel also backed the decision to award compensatory and punitive damages.

“Particularly in light of the...
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