Skip to main content

Prior Opinions Precluding Arbitration of Seaman's Suits Continue


In ESTIBEIRO v. CARNIVAL CORPORATION, 23 Fla. L. Weekly Fed. D375a (S.D. Fla. Oct. 2, 2012) (J.Seitz), the Southern District of Florida has again found that an arbitration clause in a seaman's employment contract, which required that the arbitration of claims must be held in Bermuda, unless the Bermuda venue provision is found legally unenforceable, was valid and enforceable. A seaman had brought his Jones Act claims and claims for maintenance and cure against his cruise ship employer, alleging he sustained damage to his heart muscle as result of an alleged failure to administer medication in a timely manner after he suffered a heart attack while working on cruise ship. The plaintiff brought the case in federal court, alleging that the amendment to the Jones Act which deleted the statute's venue provision rendered the Bermuda forum selection clause unlawful and contrary to public policy. The district court disagreed and found that the arbitration clause was neither substantively nor procedurally unconscionable.
 
Of course, this case follows on the Eleventh Circuit's opinion which reinforced its prior adherence to the enforceability of arbitration provisions in seamen's contracts, which significantly limited the effect of its prior decision invalidating such clauses where they precluded a seaman from seeking recovery under a statutorily defined remedy. In Lindo v. NCL (Bahamas) Ltd., 652 F.3d 1257 (11th Cir. 2011), a 2-to-1 panel decision held that arbitration provisions were enforceable even as to statutory claims, such as those arising under the Jones Act.
 
Previously, the Eleventh Circuit had followed the Fifth Circuit's earlier recognition of the validity of such provisions in Bautista v. Star Cruises, 396 F.3d 1289 (11th Cir. 2005). Subsequently, however, the court cast some doubt on the ultimate enforceability of such clauses in its later opinion in Thomas v. Carnival Corp., 573 F.3d 1113 (11th Cir. 2009), a case which I blogged on previously and received some rather interesting commentary. Thomas refused to give effect to an arbitration agreement which would have precluded the plaintiff's statutory Seaman's Wage Act claim by requiring the application of Panamianian law. In a lengthy opinion in Lindo, the majority sought to harmonize its prior decisions.
 
Estibero now gives some additional guidance. The Plaintiff in Estibero invited the district court to   follow Thomas and find that the arbitration clause is unenforceable as against public policy. The district court refused to do so for three reasons. First, the court found that Thomas is distinguishable from the instant case. Second, the court found that Thomas is of limited precedential value. Third, the court found that the plaintiff failed to make a showing that his remedies under Bermuda law are inadequate. The court gave a clear roadmap of what a plaintiff would have to show in meeting his burden that the remedies in the foreign forum are inadequate.
 
If you are interested in receiving a complete copy of this decision or wish to reach me, please feel free to contact me at mov@chaloslaw.com.

Comments

  1. AnonymousDecember 6, 2012 at 1:55 AM

    This comment has been removed by a blog administrator.

    ReplyDelete

Post a Comment

Popular posts from this blog

ReThink + ReUse Center "It's How We Roll" Fun Raiser -- Bowling Night -- October 16, 2014

As many of my readers may be aware, I am the Chair of the ReThink + ReUse Center, a non-for-profit educational and environmental Center in Miami educating children into rethinking reuseable materials for learning through play. The ReThink and ReUse Center’s Quality Play is Learning Program provides a series of educational and participatory workshops based on the philosophies of Reggio Emilia and Harvard's Project Zero Visible Thinking. The Children’s Trust is the major funder of this program, but the Center is required to continually fundraise for the balance its annual budget.   The Center is having a fun event you are invited to--the ReThink + Reuse Center’s “It’s How We Roll” bowling event on October 16, 2014 at Splitsville Luxury Lanes from 18:00 to 21:30 hours. My firm, Comcast and Waste Management are major sponsors for this event, but we could use a few more sponsors. If you are interested in sponsoring the event, please let me know by reaching me at mov@chalos...
6 comments
Read more

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...
4 comments
Read more

Maritime Law--Lozman Case Revisited in Miami?

In Hoefling v. City of Miami , Case no.: 14-12482 (11th Cir. Jan. 25, 2016), the U.S. Court of Appeals for the Eleventh Circuit revived almost all of Hoefling's claims. You ask, "Who is Hoefling?" Hoefling  lived on his sailboat Metis O moored off Dinner Key for nearly a decade—until the day he came home and it was gone. About three months earlier, an officer from the Miami Police Department's Marine Patrol Detail tagged Hoefling's vessel for lacking a sanitary device and a working anchor light. He had a deal to use the facilities at the nearby marina but quickly went out and reportedly bought what he needed to comply. Three months later while he was on a business trip, the City of Miami seized and destroyed his boat and all his belongings. As a result, he was homeless. He sued under § 1983, maritime law, and state law. He stated a claim under the Fourth Amendment for seizure and destruction without notice or cause and a “taking.”    At the ...
5 comments
Read more