A Price Tag For Mistakes

The State Department is still mulling how to rein in private security firms like Blackwater USA, whose employees dominated headlines in September when they shot dead 17 Iraqi civilians. But in 2008 a series of lawsuits currently working through the U.S. court system could have more impact. In all the cases, Iraqi victims represented by American lawyers are seeking restitution for abuses allegedly committed by contractors. While U.S. law shields military members from such suits, a judge in one case last month against CACI International Inc. left open the possibility that private contractors would not enjoy the same immunity. Peter Singer, an expert on private contractors at the Brookings Institution, says the possibility of a huge payout is already making companies review their practices. "Liability is the one thing they fear more than accountability," he says.

The suit against CACI, brought by 256 former inmates at Abu Ghraib, is a test case. Susan Burke, the lead attorney for the Iraqis, says CACI interrogators took part in torture at the prison in 2003 and 2004. She has argued that CACI employees were not just following military personnel's instructions but even directed some of the abuse. ("There's nothing in any of the Abu Ghraib investigations that accuses CACI personnel of having anything to do with rape or murder or torture," CACI attorney Bill Koegel said in response.)

Singer says Blackwater has already grasped the liability risk of its security unit and is quietly shifting its focus to safer ventures, such as private intelligence gathering. (The company did not respond to a request for comment.) If so, the Iraqi petitioners can claim one victory before their trial even begins.

© 2007