First Kuwaiti General Trading & Contracting W.L.L. v. Kellogg Brown & Root International, Incorporated
141 F.4th 522
4th Cir.2025Background
- Dispute stems from a subcontract between KBR (U.S. company) and First Kuwaiti (Kuwait/Lebanon company) to provide trailers for U.S. troops in Iraq, with First Kuwaiti incurring unexpected costs.
- First Kuwaiti sought additional compensation; KBR partly reimbursed and sought repayment from the U.S. Government but was denied after a kickback scheme involving First Kuwaiti was uncovered.
- Parties agreed to resolve all disputes via arbitration with the ICDR, which ultimately ruled for KBR regarding excess costs and did not award First Kuwaiti prejudgment interest.
- First Kuwaiti sought corrections under ICDR rules, which were denied as impermissible motions for reconsideration; KBR's clarifications were partially granted.
- First Kuwaiti filed a motion to vacate the award in federal court more than three months after the arbitration decision; KBR moved to confirm the award.
- District court denied First Kuwaiti’s motions as untimely and without legal basis, granted KBR's motion to confirm, and denied requests for prejudgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Motion to Vacate | Filed within 3 months of Article 30 decision, so timely | Motion was untimely based on original award date | Motion untimely; 3 months ran from final award |
| Authority to Confirm Arbitration Award | District court lacked authority; no consent to confirm | Confirmation proper under FAA, given foreign party | Authority proper under FAA Chapter Two |
| Prejudgment Interest | Arbitration didn’t address it; court could grant | Issue already decided/adjudicated in arbitration | District court did not abuse discretion denying |
Key Cases Cited
- Kellogg Brown & Root Servs., Inc. v. Sec’y of the Army, 973 F.3d 1366 (Fed. Cir. 2020) (affirming denial of KBR’s reimbursement for First Kuwaiti claims)
- Norfolk S. Ry. Co. v. Sprint Commc’ns Co. L.P., 883 F.3d 417 (4th Cir. 2018) (defining finality for arbitration awards under FAA)
- Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008) (district court must confirm arbitral award if statutory requirements met)
- Mary Helen Coal Corp. v. Hudson, 235 F.3d 207 (4th Cir. 2000) (standard for reviewing district court’s damages and interest determination)