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Gibson Dunn Wins for Military Subcontractor in Rare Trial Over Iraq Reconstruction Costs
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Among critics of America’s reliance on military subcontractors in Iraq, Parsons Corp. became particularly notorious in 2006, when its $75 million Baghdad police academy building was found to be leaking human waste–literally. The giant construction firm, which has been fighting a negative image ever since, finally got some good news Tuesday, when a California state court jury found that it was not liable for damages in a rare breach of contract case tied to Iraq’s reconstruction.
Fiber Technologies Corporation sued Nevada-based Parsons in state court in Los Angeles in 2006, claiming that the company breached a contract to purchase $11.4 million worth of water tanks, and seeking damages up to the full contract amount. On Tuesday, a jury found that Parsons had breached its agreement, but agreed with the military contractor’s defense that it had negotiated in good faith and should not be held liable for damages or any other recovery.
Parsons was represented by David Battaglia of Gibson, Dunn & Crutcher. Barry West of L.A.’s Gaims, Weil, West & Epstein represented Fiber Technologies.