December 17 2010 Copyright 2010 Business Research Services Inc. 301-229-5561 All rights reserved.

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Court: Employment Agreement Protects Contractors

The Delaware Supreme Court has upheld a commonly used employment agreement that insulates contractors from employees’ claims of wrongful death or negligence.

Two DynCorp employees, working as civilian policemen for the State Department in Afghanistan, were killed in a 2004 car-bomb attack on their headquarters. A third employee was seriously wounded. Survivors of the dead men sued DynCorp for wrongful death and the wounded employee sought damages for negligence.

The court found that the men had signed an employment agreement stating that “the employee understands and accepts the fact that he or she may be exposed to dangers due to the nature of the mission. The employee agrees that neither the Employer nor its affiliates will be liable in the event of death, injury, or disability, to Employee, except as stated.”

As part of the agreement, DynCorp provided the employees with life, health and disability insurance.

The court’s opinion, written by Chief Justice Myron Steele, said the employees “waived all of their claims against DynCorp in a pre-injury limitation on liability agreement in return for insurance.”

According to the court, families of the dead men have each received $160,000 from life insurance. The wounded man receives more than $1,000 per week while he is disabled.

Although the decision is only binding in Delaware, where DynCorp is incorporated, an attorney for DynCorp told the newspaper Federal Times that it is the first such ruling of its kind and should serve as a precedent in other states.


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