Lawsuit in outsourced U.S. war is moved out of court (Blackwater)

By Bernd Debusmann, Special Correspondent
WASHINGTON (Reuters) - After years of high-stakes legal wrangling, a lawsuit stemming from the gruesome deaths of four U.S. contractors in Iraq is moving behind closed doors in an action seen as an important precedent for the booming private security industry.
The suit, for wrongful death and fraud, was filed in January 2005 against Blackwater Security Consulting, one of scores of companies now fielding close to 130,000 civilians who work alongside the U.S. military in Iraq. Generally their contracts stipulate the contractors assume all risks -- injury, death, disability -- and waive their right to sue.
"This is a very important decision," said Jeffrey Addicott, a retired Special Forces lawyer and director of the Center for Terrorism Law at St. Mary's University in San Antonio. "It is a recognition that the contract is iron-clad and that its terms absolve the company of liability. In future cases, this will be cited as a precedent."
But some legal experts see the removal of the Fallujah case from the judicial process as an ominous development.
"This may be a victory for the Blackwater legal team but it is a defeat for the principle of transparency," said Eugene Fidell, an expert on military law and president of the non-profit National Institute of Military Justice. "This means that the shadow army (of contractors) will slip even further into the shadows."
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