The Virginian-Pilot newspaper is reporting the private security company Blackwater USA has succeeded in partially derailing a landmark lawsuit brought by the families of four Blackwater employees killed in Fallujah, Iraq, three years ago. A federal judge has ordered the lawsuit be decided behind closed doors in arbitration. This will allow Blackwater to avoid public examination of its practices in Iraq. The outcome of the arbitration will be confidential. One of the three arbitrators is William Webster. He served as head of the FBI and CIA under President Reagan and has personal and business ties to several Blackwater lawyers.