...[F]ederal appeals court in Virginia is grappling with whether former Iraqi prisoners can bring a civil suit against U.S.-based contractors. The case, which hasn't drawn much public attention, is notable for an unexpected position taken by the U.S. government. Although the government is not a party to the suit, when the court asked for its opinion, it argued the former prisoners' case should be allowed to go forward...It marks the first time the government has said that former Abu Ghraib prisoners, who allege they were tortured while in U.S. custody, should have the opportunity to make their case and sue contractors for damages. But the government says that similar claims in the future would be pre-empted by a federal law passed after the Abu Ghraib scandal that provides separate ways of holding contractors accountable..."...Lawyers for the Iraqis say that the contractors participated directly and through a "conspiracy in torture."...Lawyers for CACI say...their clients were performing military interrogations in a theater of war under contract with the U.S. government. [also refers to L-3 Services]