First Kuwaiti Trading & Contracting successfully challenges personal jurisdiction and obtains dismissal of False Claims Act suit brought by U.S. government

Client(s) First Kuwaiti Trading and Contracting W.L.L.

Jones Day represented First Kuwaiti Trading & Contracting W.L.L., an overseas government subcontractor, in a False Claims Act suit brought by the U.S. government. The government made allegations related to certain payments made to First Kuwaiti by KBR, the government's prime contractor, who was also a named in the action.

First Kuwaiti moved to dismiss the complaint, arguing that the district court lacked personal jurisdiction because First Kuwaiti had no direct contacts with the territory of the United States and had performed all of its work on the government subcontract at issue overseas. First Kuwaiti also contended that the fact that the U.S. government alleged that it was harmed by its overseas conduct was insufficient to confer jurisdiction.

The district court agreed and dismissed all claims brought against First Kuwaiti. It held that the government had not shown that First Kuwaiti had a meaningful connection with the United States based on its submission of claims for payment to KBR. It further concluded that the fact that the U.S. government alleged it was harmed by these claims was irrelevant to the personal jurisdiction analysis. The government did not appeal the dismissal.

U.S. v. Kellogg Brown & Root Services, et al., No. 12-cv-4110 (C.D. Ill.)