Skip to main content

Eleventh Circuit Speaks on Arbitration Provisions in Crew Contracts


Jane Doe v. Princess Cruse Lines, Ltd., Jane Doe v. Princess Cruse Lines, Ltd., No. 10-10809 (11th Cir. 2011), addresses the important necessity of careful corporate drafting of international arbitration provisions, a topic I have blogged about in the past.

Plaintiff Doe alleged a harrowing story of a woman working for Princess Cruise Lines on one of its ships, who alleged she was drugged by other employees, raped, and physically injured while she was unconscious, and, as the Court of Appeals summarized, “when she reported to officials of the cruise line what had happened to her they treated her with indifference and even hostility, failed to provide her with proper medical treatment on board, and interfered with her attempts to obtain medical treatment and counseling ashore”.  The issue before the Eleventh Circuit was whether and to what extent her claims were arbitrable under a broad arbitration provision.  In addition to making specific reference to the required arbitrability of claims for personal injury, the arbitration provision specified:

"[T]he Company and crew member agree that any and all disputes, claims, or controversies whatsoever (whether in contract, regulatory, tort or otherwise and whether pre-existing, present or future and including constitutional, statutory, common law, admiralty, intentional tort and equitable claims) relating to or in any way arising out of or connected with the Crew Agreement, these terms, or services performed for the Company."

Despite its breadth, the Court of Appeals determined that many of the plaintiff’s claims did not have to be arbitrated.  The Court held that the “relating to”, “arising out of”, and “connected to” language “marks a boundary by indicating some direct relationship” or “direct connection”; hence, claims that were not even indirectly tethered to the work environment or relationship fell outside the arbitration provision.  The Court of Appeals so held notwithstanding the following holding of the Supreme Court in Aguilar v. Standard Oil Co. of N.J., 318 U.S. 724 (1943):

"Unlike men employed in service on land, the seaman, when he finishes his day’s work, is neither relieved of obligations to his employer nor wholly free to dispose of his leisure as he sees fit. Of necessity, during the voyage he must eat, drink, lodge and divert himself within the confines of the ship. In short, during the period of his tenure the vessel is not merely his place of employment; it is the frame-work of his existence. For that reason among others his employer’s responsibility for maintenance and cure extends beyond injuries sustained because of, or while engaged in, activities required by his employment. In this respect it is a broader liability than that imposed by modern workmen’s compensation statutes."

The Eleventh Circuit also held that Princess had waived its right to claim on appeal that the arbitrator, not the Court, should have decided the issue of arbitrability in the first instance. The Court found that Princess waived any right to appeal since it was Princess that went to the District Court in the first place.

If you are interested in receiving a copy of this important decision, please feel free to contact me at miamipandi@comcast.net.

Comments

Popular posts from this blog

Maritime Law--Florida's Arbitration Code Is Now Revised

Those of us that practice maritime law regularly must always be on the lookout for the contract that may contain an arbitration clause. Thus, any laws related to arbitration are important to those of us practicing in this sector.       The Florida legislature has revised the Florida Arbitration Code ("FAC") and named it the Revised Florida Arbitration Code (the " Revised Act"). Since 1967, the FAC had gone mostly unchanged. The Revised Act addresses concepts that were not addressed in the old law, such as the ability of arbitrators to issue provision remedies, challenges based on notice, consolidation of separate arbitration proceedings, required conflict disclosures by arbitrators, among other major changes. The Revised Act lays out a detailed framework for international arbitration conducted under Florida law and repeals sections of the FAC. The Revised Act spells out what experienced arbitrators knew the case law to be, but codifies it all in one pl

Maritime Law--U.S. Crewmember Required to Arbitrate Claims Applying Norwegian Law

In Alberts v. Royal Caribbean Cruises, Ltd ., No. 15-14775 (11th Cir. Aug. 23, 2016), the U.S. Court of Appeals for the Eleventh Circuit held that a U.S. citizen, working aboard a Royal Caribbean cruise ship is required to arbitrate his claims against Royal Caribbean. Plaintiff, a United States citizen, worked as the lead trumpeter on a passenger Royal Caribbean cruise ship. The ship is a Bahamian flagged vessel with a home port in Fort Lauderdale, Florida. Royal Caribbean, the operator of the vessel, is a Liberian corporation with its principal place of business in Florida. After plaintiff became ill while working for Royal Caribbean, he filed suit alleging unseaworthiness, negligence, negligence under the Jones Act, maintenance and cure, and seaman’s wages and penalties. Royal Caribbean moved to compel arbitration, and the district court granted the motion. This appeal presented an issue of first impression: Whether a seaman’s work in international waters on a cruise ship

Maritime Law--Jury Hits Royal Caribbean Cruises With $20.3M Verdict for Officer's Hand Injury

In Spearman v. Royal Caribbean Cruises , Case No. 2011-023730-CA-01, a Miami-Dade County, Florida jury has awarded $20.3 million to a former crewmember of Royal Caribbean Cruises, whose hand was crushed while coming to the aid of a fellow worker during an emergency test in 2008. After a three-week trial, the jury found the Miami-based cruise company negligent in operating an unseaworthy ship and 100 percent liable for the injuries suffered by Lisa Spearman, who was working an officer on Royal Caribbean’s Voyager of the Seas . Spearman sued the company in 2011, three years after her right hand was caught in a watertight power door during a fire-safety drill. According to her lawyers, Spearman was trying to prevent the door from closing on the ship’s nurse when her hand was pulled into a recess pocket of the sliding door and crushed.  The nurse allegedly breached the company’s safety protocol when she stumbled through the door, prompting the response from Spearman. Accordin