Justia Admiralty & Maritime Law Opinion Summaries

An arbitration provision in a maritime insurance policy is enforceable despite law in the forum state assertedly precluding its application. This case concerned the scope of insurance coverage Galilea bought for its yacht. The Ninth Circuit held that the Federal Arbitration Act (FAA), 9 U.S.C. 1-16, applied to the insurance policy but not the insurance application. In this case, the insurance application was not a contract, but the insurance policy was a contract subject to the FAA because the FAA constituted established federal maritime law for maritime transactions; federal maritime law was not precluded by Montana law under the McCarran-Ferguson Act, 15 U.S.C. 1012; and federal maritime law was not precluded by Montana law under M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (1972). The panel also held that the parties have delegated arbitrability issues to an arbitrator. Therefore, the panel affirmed the district court's order finding the policy's arbitration clause enforceable and affirmed the district court's order granting the Underwriters' motion to compel arbitration as to certain causes of action. The panel affirmed in part, reversed in part, and remanded. View "Galilea, LLC v. AGCS Marine Insurance Co." on Justia Law

The Convention on the Recognition and Enforcement of Foreign Arbitral Awards does not allow nonsignatories or non-parties to compel arbitration. The Federal Arbitration Act (FAA) expressly exempted from its scope any contracts of employment of seamen. In this maritime action, the Ninth Circuit affirmed the denial of a motion to compel arbitration arising from the death of a seaman in the sinking of a fishing vessel. Dongwon moved to compel arbitration based on an employment agreement between the seaman and the vessel's owner, Majestic. The panel held that Dongwon was neither a signatory nor a party to the employment agreement. The panel also held that Dongwan could not compel arbitration on grounds other than the Convention Treaty, such as the FAA. View "Yang v. Dongwon Industries, Ltd." on Justia Law

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 presents an issue of first impression: whether a seaman’s work in international waters on a cruise ship that calls on foreign ports constitutes “performance . . . abroad” under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 9 U.S.C. 202. The Convention makes enforceable an arbitration agreement between United States citizens if their contractual relationship “envisages performance . . . abroad.” The court affirmed the order compelling arbitration of the dispute because a seaman works abroad when traveling in international waters to or from a foreign state. View "Alberts v. Royal Caribbean Cruises, Ltd." on Justia Law

Plaintiff, a Honduran citizen who suffered a back injury while employed as a mason aboard one of Carnival's ships, filed suit against Carnival in state court asserting claims of Jones Act, 46 U.S.C. 30104, negligence, unseaworthiness, and failure to provide adequate maintenance and cure. Plaintiff alleged that the physician chosen and paid by Carnival negligently performed his back surgery. Carnival removed to federal court. On appeal, plaintiff appealed the district court's order compelling arbitration of his claims under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (CREFAA), 9 U.S.C. 201-208. Plaintiff argued that his Jones Act claim did not fall within his employment contract ("Seafarer's Agreement") with Carnival and, therefore, was not within the scope of the contract's arbitration clause. The court concluded that the order compelling plaintiff to arbitrate his claims was "a final decision with respect to arbitration," and the court had appellate jurisdiction. The court also concluded that plaintiff's dispute with Carnival clearly arose out of or in connection with the Seafarer's Agreement and was subject to arbitration. Accordingly, the court affirmed the district court's order. View "Martinez v. Carnival Corp." on Justia Law

This case stemmed from a maritime contract entered into by Blue Whale and Development. Blue Whale filed a complaint in district seeking to attach property belonging to Development's alleged alter ego, HNA, in anticipation of a future arbitration award against Development pursuant to Rule B of the Supplemental Rules for Certain Admiralty and Maritime Claims. The court concluded that the district court properly applied federal maritime law to the procedural question of whether Blue Whale's claim sounded in admiralty, and the claim did sound in admiralty because it arose out of a maritime contract; the issue of the claim's prima facie validity was a substantive inquiry; however, the district court's application of English law to this question was improper because the charter's party's choice-of-law provision did not govern Blue Whale's collateral alter-ego claim against HNA; and drawing on maritime choice-of-law principles, the court held that although federal common law did not govern every claim of this nature, federal common law did apply here, primarily because of the collateral claim's close ties to the United States. Accordingly, the court remanded for reconsideration of the prima facie validity of Blue Whale's alter-ego claim under federal common law. View "Blue Whale Corp. v. Grand China Shipping Dev. Co., Ltd., et al." on Justia Law

Plaintiff, a former seaman employee of defendant, was injured on the job and sued defendant in Florida state court claiming that defendant was negligent under the Jones Act, 46 U.S.C. 30104, and failed to provide maintenance and care as required by U.S. maritime law. Defendant, noting that plaintiff's employment contract required the parties to submit disputes to arbitration, removed the case to federal district court under 9 U.S.C. 205. After the removal, the district court in a single order denied defendant's motion to enforce the arbitration clause on the basis that the arbitration clause was void under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Convention) for violating public policy and remanded the matter back to state court. Defendant appealed this order. Plaintiff moved to dismiss the appeal and argued that by concluding that the arbitration clause was null and void, there was no longer a basis for jurisdiction. The district court dismissed the case for lack of subject-matter jurisdiction and the court subsequently granted plaintiff's motion to dismiss defendant's appeal for lack of jurisdiction. View "Harrisson v. NCL (Bahamas) Ltd." on Justia Law

Plaintiff, a citizen of the Philippines, brought suit against defendants for damages arising from severe injuries he sustained aboard the M/V Asian Spirit in the Chesapeake Bay near Baltimore. Plaintiff's complaint alleged multiple clams against defendants, including unseaworthiness, maintenance and cure, breach of contract, violation of the Seaman's Wage Act, 46 U.S.C. 10313(i), and negligence under general maritime law and the Jones Act, 46 U.S.C. 30104. The court affirmed the district court's judgment that the Arbitration Clause at issue was enforceable and that plaintiff must arbitrate his claims against defendants in the Philippines. Nevertheless, the court vacated the dismissal of the case and remanded for reinstatement thereof, for assessment of the injunction request, for entry of a stay pending arbitration to ensure that plaintiff would have an opportunity at the award-enforcement stage for judicial review of his public policy defense based on the prospective waiver doctrine, and for such other and further proceedings. View "Aggarao, Jr. v. Mol Ship Mgmt. Co." on Justia Law

Plaintiff appealed the district court's enforcement of the arbitration agreement in his employment contract with defendant. Plaintiff sued defendant on a single count of Jones Act negligence, pursuant to 46 U.S.C. 30104, claiming that defendant breached its duty to supply him with a safe place to work. The court held that, given the United Nations Convention on Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and governing Supreme Court and Circuit Court precedent, the court must enforce the arbitration clause in plaintiff's employment contract, at least at this initial arbitration-enforcement stage. Therefore, after review and oral argument, the court affirmed the district court's order compelling arbitration of plaintiff's Jones Act negligence claim.View "Lindo v. NCL (Bahamas), LTD" on Justia Law

Plaintiff filed a complaint against defendant, seeking indemnity and/or contribution based on the damage defendant allegedly caused through gross negligence in removing plaintiff's vessel from a coral reef. At issue was whether the district court properly denied defendant's motion to compel arbitration of the dispute under the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., where defendant alleged that the district court erred in refusing to apply English arbitrability law. The court held that based on the Supreme Court's reasoning in First Options of Chicago, Inc. v. Kaplan, courts should apply non-federal arbitrability law only if there was clear and unmistakable evidence that the parties intended to apply such non-federal law. Because there was no clear and unmistakable evidence in this case, federal arbitrability law applied. Under federal arbitrability law, the court's decisions in Mediterranean Enterprises, Inc. v. Ssangyong Construction Co. and Tracer Research Corp. v. National Environmental Services, Co., mandated a narrow interpretation of a clause providing for arbitration of all disputes "arising under" an agreement. Under this narrow interpretation, the present dispute was not arbitrable. Therefore, the court affirmed the district court's judgment.View "Cape Flattery Ltd. v. Titan Maritime, LLC" on Justia Law

Plaintiff appealed from an order of the district court vacating the attachment, pursuant to Rule B of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions of the Federal Rules of Civil Procedure, of a check issued by the district court clerk made payable to defendant. At issue was whether the validity of a Rule B attachment of a treasury check issued from the Southern District's Court Registry Investment System (CRIS), representing the proceeds of electronic funds transfers whose attachment was vacated under Shipping Corp. of India Ltd. v. Jaldhi Overseas Pte Ltd. The court held that the jurisdictional defect that led to the vacatur under Jaldhi likewise precluded the attachment of the same funds in the CRIS. Accordingly, the judgment was affirmed. View "India Steamship Co. Ltd. v. Kobil Petroleum Ltd." on Justia Law