Supreme Court Sides With KBR, Halliburton on Lawsuit Time Limits

WASHINGTON—The Supreme Court ruled on Tuesday that whistleblowers don't get extra time to file civil false-claims lawsuits when the U.S. is at war, a win for military contractors Halliburton Co. and KBR Inc.

The court's ruling could knock out most legal claims by plaintiff Benjamin Carter, who did contracting work in Iraq in early 2005 and alleged the companies fraudulently billed the government for water purification work that wasn't actually performed.

The contractors denied the allegations.

Under the False Claims Act, private litigants can bring civil lawsuits alleging fraud against the government and share in any legal winnings.

A key issue in the case was the meaning of the Wartime Suspension of Limitations Act, which extends the time for bringing cases of fraud against the government while the U.S. is engaged in military operations.

The Supreme Court, in a ruling by Justice Samuel Alito, said the law only suspends time limits during wartime for the prosecution of criminal cases alleging fraud against the U.S.

Civil lawsuits like Mr. Carter's don't get the extra time, the court said in a unanimous decision.

The relevant version of Mr. Carter's lawsuit wasn't filed until mid-2011, which would make most of his claims untimely under the normal statute of limitations in the False Claims Act.

Other false-claims cases working their way through the courts have raised similar issues, including one currently pending at the Supreme Court involving Purdue Pharma L.P. and its marketing of the painkiller OxyContin. That case has been on hold while the justices considered the KBR case.

Write to Brent Kendall at [e-mail]

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