FI L ED

U.S. COURT OF APPEAL S

EL EVENTH CI RCUI T

J UL Y 1, 2009

THOMAS K. KAH

N

CL ERK [ P U B L I S H ]

I N T H E U N I T E D S T A T E S C O U R T O F A P P E A L S

F O R T H E E L E V E N T H C I R C U I T

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N o

. 0 8

- 1 0 6 1 3

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D

. C

. D o c k e t N o

. 0 7

- 2 1 8 6 7

- C V

- J A L

P U L I Y U R U M P I L M A T H E W T H O M A S

,

P l a i n t i f f

- A p p e l l a n t

,

v e r s u s

C A R N I V A L C O R P O R A T I O N

, d

. b

. a

. C a r n i v a l C r u i s e L i n e s I n c

. ,

D e f e n d a n t

- A p p e l l e e

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A p p e a l f r o m t h e U n i t e d S t a t e s D i s t r i c t C o u r t

f o r t h e S o u t h e r n D i s t r i c t o f F l o r i d a

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

( J u l y 1

, 2 0 0 9 )

B e f o r e B A R K E T T a n d F A Y

, C i r c u i t J u d g e s

, a n d T R A G E R

, D i s t r i c t J u d g e

. *

P E R C U R I A M :

Honora ble David G. Trag er, United States District J udge for the Eastern District of New *

York, sitting by

desig nation.P u l i y u r u m p i l M a t h e w T h o m a s a p p e a l s t h e d i s t r i c t c o u r t ’ s O r d e r g r a n t i n g

C a r n i v a l C o r p o r a t i o n ’ s M o t i o n t o C o m p e l A r b i t r a t i o n a n d t h e O r d e r d e n y i n g h i s

M o t i o n t o R e m a n d t h i s c a s e t o s t a t e c o u r t

. T h o m a s o r i g i n a l l y b r o u g h t s u i t a g a i n s t

C a r n i v a l

, h i s f

o r m e r e m p l o y e r w h i c h o p e r a t e d c r u i s e l i n e s i n F l o r i d a w a t e r s

, i n

F l o r i d a s t a t e c o u r t f

o r d a m a g e s a r i s i n g f

r o m i n j u r i e s h e s u s t a i n e d i n a s l i p

- a n d

- f a l l

o n b o a r d a C a r n i v a l s h i p

. H e s u e d f o r n e g l i g e n c e u n d e r t h e J o n e s A c t ( C o u n t I )

, 1

u n s e a w o r t h i n e s s o f t h e s h i p a n d f a i l u r e t o p r o v i d e p r o m p t a n d a d e q u a t e

m a i n t e n a n c e a n d c u r e u n d e r g e n e r a l m a r i t i m e l a w o f t h e U n i t e d S t a t e s ( C o u n t s I I 2

a n d I I I )

, a n d f

a i l u r e t o p a y w a g e s u n d e r t h e S e a m a n ’ s W a g e A c t ( C o u n t I V )

. 3

R e l y i n g o n t h e a r b i t r a t i o n c l a u s e o f i t s m o s t r e c e n t S e a f a r e r ’ s A g r e e m e n t

w i t h T h o m a s i n c o n

j u n c t i o n w i t h t h e C o n v e n t i o n o n t h e R e c o g n i t i o n a n d

The J ones Act confe rs on seame n the statutory rig ht to sue their employ ers in an Americ an 1

court for the neg lige nce of

fellow c rewmembers. 46 U.S.C. § 30104.

“Maintena

nce and cure ” is a

n ancie nt c ommon-law maritime reme dy for seame n who are 2

injured while in the ser

vice of a vesse l. Our circ uit has descr ibed the ac tion as follows:

The seaman’s action for m aintenanc e and cure may be seen as one desig ned to put

the sailor in the same position he would have been had h e co n tinued to work: the

seama n rec eives a maintenanc e reme dy

, beca use working s eamen normally are

housed and fed aboar d ship; he rec overs pay ment for medical expenses in the amount

nece ssary to bring him to the maxi mum cure ; and he rec eives an amount repr esenting

his unearne d wag es for

the dura tion of his voy ag e or c ontrac t period.

Flore s v. Carnival Cruise L ines, 47 F.3d 1120, 1127 ( 11th Cir. 1995).

The Seaman’ s Wage Act, inter alia, focuse s on ensuring prompt wag e pay ment to seama

n 3

via a treble- damag es wage-p enalty provision assessed on employ ers for late wag es. 46 U.S.C. §

10313.

2E n f

o r c e m e n t o f F o r e i g n A r b i t r a l A w a r d s ( t h e “ C o n v e n t i o n ” )

, C a r n i v a l f i l e d t o

r e m o v e t h e s u i t t o f

e d e r a l c o u r t a n d h a v e t h e d i s t r i c t c o u r t c o m p e l t h e p a r t i e s t o

a r b i t r a t e

. T h e d i s t r i c t c o u r t g r a n t e d t h e s e m o t i o n s

, f i n d i n g t h a t t h e C o n v e n t i o n

a p p l i e d a n d t h a t t h e a r b i t r a t i o n p r o v i s i o n o f t h e S e a f a r e r ' s A g r e e m e n t w a s

e n f o r c e a b l e

.

T h o m a s a p p e a l s t h i s d e c i s i o n a n d a r g u e s t h a t i t s h o u l d b e r e v e r s e d o n

s e v e r a l g r o u n d s

. F i r s t

, T h o m a s a r g u e s t h a t t h e C o n v e n t i o n d o e s n o t a p p l y i n t h i s

c a s e b e c a u s e t w o o f i t s f o u r j u r i s d i c t i o n a l p r e r e q u i s i t e s h a v e n o t b e e n m e t

.

S p e c i f i c a l l y

, h e a r g u e s t h a t t h e r e q u i r e m e n t t h a t a n y a g r e e m e n t t o a r b i t r a t e m u s t b e

i n w r i t i n g w a s n o t m e t b e c a u s e t h e g o v e r n i n g S e a f a r e r ’ s A g r e e m e n t a t t h e t i m e o f

h i s i n j u r i e s d i d n o t c o n t a i n a n a r b i t r a t i o n c l a u s e

. A s t o t h e C o n v e n t i o n ’ s p r o v i s i o n

t h a t i t o n l y a p p l i e s t o c o m m e r c i a l c o n t r a c t s

, h e a r g u e s t h a t s e a m e n e m p l o y m e n t

c o n t r a c t s a r e n o t c o n s i d e r e d c o m m e r c i a l c o n t r a c t s

.

A l t e r n a t i v e l y

, T h o m a s n o t e s t h a t e v e n i f a l l o f t h e j u r i s d i c t i o n a l

r e q u i r e m e n t s a r e m e t

, t h e C o n v e n t i o n p r o v i d e s t h a t c o u r t s n e e d n o t e n f o r c e a n

a r b i t r a t i o n c l a u s e w h e n t o d o s o “ w o u l d b e c o n t r a r y t o t h e p u b l i c p o l i c y o f t h a t

c o u n t r y

. ” T h o m a s i n v o k e s t h i s a f f i r m a t i v e d e f

e n s e

, a r g u i n g t h a t f

o r c i n g h i m t o

a r b i t r a t e i n a f

o r u m t h a t w o u l d a p p l y n o n

- U

. S

. l a w c o n s t i t u t e s a p r o s p e c t i v e w a i v e r

o f h i s U

. S

. s t a t u t o r y r i g h t s a n d

, t h u s

, t h e A r b i t r a t i o n C l a u s e v i o l a t e s U

. S

. p u b l i c

3p o l i c y

.

F i n a l l y

, T h o m a s a r g u e s t h a t h i s s t a t u t o r y c l a i m s ( b a s e d o n t h e S e a m a n ’ s

W a g e A c t a n d J o n e s A c t ) a r e o u t s i d e t h e s c o p e o f t h e C o n v e n t i o n

. H e a s s e r t s t h a t

b o t h s t a t u t e s a r e a t o d d s w i t h t h e C o n v e n t i o n a n d

, a s m o r e r e c e n t l y p a s s e d a n d

a m e n d e d s t a t u t e s

, t h e y s u p e r s e d e a l l p r i o r i n c o n s i s t e n t t r e a t i e s i n c l u d i n g t h e

C o n v e n t i o n

.

B A C K G R O U N D

T h o m a s w a s e m p l o y e d b y C a r n i v a l a s a h e a d w a i t e r o n o n e o f i t s c r u i s e

s h i p s

, t h e I m a g i n a t i o n

, w h i c h f l e w a P a n a m a n i a n f

l a g o f c o n v e n i e n c e

. O n 4

N o v e m b e r 8

, 2 0 0 4

, T h o m a s s l i p p e d a n d f e l l o n a w e t s u b s t a n c e i n t h e d i n i n g r o o m

,

d r o p p i n g a c o f

f e e p o t

. H e i n

j u r e d h i s s p i n e a n d r i g h t s h o u l d e r a n d b u r n e d h i s l e g

.

T h e S e a f a r e r ’ s A g r e e m e n t i n e f

f e c t a t t h a t t i m e d i d n o t c o n t a i n a n y a r b i t r a t i o n

p r o v i s i o n ( t h e “ O l d A g r e e m e n t ” )

. T h o m a s r e c e i v e d w h a t h e a l l e g e d w a s

s u b s t a n d a r d m e d i c a l c a r e f r o m t h e o n b o a r d p h y s i c i a n

, w h o o n l y a d d r e s s e d t h e l e g

b u r n

. D u e t o t h e i n

j u r i e s

, h e w a s s i g n e d o f f t h e v e s s e l s o o n a f

t e r

, b u t o n r e g u l a r

v a c a t i o n t i m e r a t h e r t h a n m e d i c a l l e a v e

. D u r i n g t h i s p e r i o d

, h e w a s n o t g i v e n a n y

A ship uses a flag of convenie nce when the nationality of the ship’s owner is differ ent from 4

the country

of re g istration of the ship. The ship flies a f lag of convenie nce to show the country of

reg istration, which deter

mines the laws under which the ship is require d to opera te and to be applied

in releva nt admiralty

case s.

4m a i n t e n a n c e o r c u r e p a y m e n t s

, n o r w a s h e t r e a t e d f o r h i s n e c k a n d s h o u l d e r

i n j u r i e s

. I n J a n u a r y o f 2 0 0 5

, T h o m a s a g a i n s i g n e d o n t o t h e I m a g i n a t i o n

. O v e r t h e

c o u r s e o f t h e n e x t s e v e r a l m o n t h s

, T h o m a s r e p e a t e d l y v i s i t e d t h e s h i p b o a r d

p h y s i c i a n w h e r e h e c l a i m s t h a t h e ( 1 ) i n i t i a l l y w a s t o l d t h a t h e d i d n o t h a v e

i n j u r i e s ; ( 2 ) l a t e r w a s t r e a t e d o n l y w i t h a n a l g e s i c b a l m a n d p a i n k i l l e r s ; a n d ( 3 )

e v e n t u a l l y w a s s i g n e d o f f t h e v e s s e l

, a g a i n d u e t o i n j u r i e s a n d a g a i n o n r e g u l a r

v a c a t i o n l e a v e

. B e f

o r e b e i n g s i g n e d o f

f f r o m t h e s h i p

, t h e r e w e r e m a n y d a y s

T h o m a s c o u l d n o t p r o p e r l y e x e c u t e h i s d u t i e s b e c a u s e o f h i s s h o u l d e r a n d n e c k

p a i n

, a n d h e c o n s e q u e n t l y l o s t p a y

.

O n O c t o b e r 1 0

, 2 0 0 5

, T h o m a s a g a i n r e t u r n e d t o t h e I m a g i n a t i o n a n d

e x e c u t e d a n e w S e a f

a r e r ’ s A g r e e m e n t w i t h C a r n i v a l t h a t d i d c o n t a i n a n a r b i t r a t i o n

c l a u s e ( t h e “ N e w A g r e e m e n t ” )

, w h i c h s p e c i f i e d t h a t a n y d i s p u t e s w o u l d b e

a r b i t r a t e d i n t h e P h i l i p p i n e s a n d r e s o l v e d u n d e r P a n a m a n i a n l a w

. J u s t o v e r t w o

m o n t h s l a t e r

, i n D e c e m b e r o f 2 0 0 5

, t h e s h i p b o a r d p h y s i c i a n d e t e r m i n e d t h a t

T h o m a s ’ s p r e v i o u s i n

j u r i e s f r o m 2 0 0 4 r e n d e r e d h i m u n f i t f o r c o n t i n u i n g w i t h h i s

d u t i e s

, a n d h e w a s o f

f i c i a l l y d i s c h a r g e d f

o r g o o d

. T h o m a s w a s g i v e n a m e d i c a l

s i g n

- o f f w i t h a $ 7 0 0 p a y m e n t a n d c o m m e n c e d r e c e i v i n g m e d i c a l t r e a t m e n t

. A f t e r

h i s m e d i c a l s i g n

- o f

f

, h e r e c e i v e d m a i n t e n a n c e a n d c u r e p a y m e n t s f o r

a p p r o x i m a t e l y t h r e e m o n t h s

, b u t t h o s e c e a s e d i n A p r i l o f 2 0 0 6

.

5D I S C U S S I O N

I

. C o n v e n t i o n o n t h e R e c o g n i t i o n a n d E n f o r c e m e n t o f F o r e i g n A r b i t r a l

A w a r d s

T h e C o n v e n t i o n o n t h e R e c o g n i t i o n a n d E n f o r c e m e n t o f F o r e i g n A r b i t r a l

A w a r d s

, a l s o k n o w n a s t h e N e w Y o r k C o n v e n t i o n

, i s a m u l t i

- l a t e r a l t r e a t y t h a t

r e q u i r e s c o u r t s o f a n a t i o n s t a t e t o g i v e e f f e c t t o p r i v a t e a g r e e m e n t s t o a r b i t r a t e a n d

t o e n f o r c e a r b i t r a t i o n a w a r d s m a d e i n o t h e r c o n t r a c t i n g s t a t e s

. T h e U n i t e d S t a t e s

, 5

a s a s i g n a t o r y t o t h e C o n v e n t i o n

, e n f o r c e s t h i s t r e a t y t h r o u g h C h a p t e r 2 o f t h e U

. S

.

F e d e r a l A r b i t r a t i o n A c t ( F A A )

, w h i c h i n c o r p o r a t e s t h e t e r m s o f t h e C o n v e n t i o n

( t h e “ C o n v e n t i o n A c t ” )

. 6

W e r e v i e w d e n o v o a d i s t r i c t c o u r t ’ s o r d e r t o c o m p e l a r b i t r a t i o n p u r s u a n t t o

t h e C o n v e n t i o n A c t

. B a u t i s t a v

. S t a r C r u i s e s

, 3 9 6 F

. 3 d 1 2 8 9

, 1 2 9 4 ( 1 1 t h C i r

.

2 0 0 5 )

. U n l e s s t h e r e i s a n a f f i r m a t i v e d e f

e n s e t h a t p r e v e n t s t h e a p p l i c a t i o n o f t h e

C o n v e n t i o n A c t

, t h e C o u r t s h o u l d c o m p e l t h e p a r t i e s t o a r b i t r a t e

, p r o v i d i n g t h e

The Convention was adopted by a United Nations diplomatic confe renc e on J une 10, 1958 5

and enter ed into forc e on J u n e 7, 1959. I t was signe d by the President of the United States and

ratified by Congr ess in 1970. As of January 2009, there wer e 144 parties to the Convention—142

of t h e 192 United Nations Member States, the Holy See and the Cook I slands (a New Z eala nd

Depe ndent Ter

ritory ).

See 9 U.S.C. § 205 (“Where the subject matter of an action or proce eding pending in a State 6

court rela tes to an arbitra tion ag ree ment or awa rd falling under the Convention [on the Recog nition

and Enforc ement of For eig n Arbitral Awar ds], the defe ndant or defe ndants may

, at any time befor e

the trial there of, remove such action or proce eding to the district court

. . . wh er e t h e ac t ion or

proce eding is pending .”); 9 U.S.C. § 206 (“A court having jurisdiction under this chapte r [9 USCS

§§ 201 et seq.] may direc t that arbitra ti o n be held in acc ordanc e with the ag ree ment at any place

there in provided for , whether that place is within or without t he United States.” )

6f

o l l o w i n g j u r i s d i c t i o n a l p r e r e q u i s i t e s a r e m e t :

( 1 ) t h e r e i s a n a g r e e m e n t i n w r i t i n g t o a r b i t r a t e t h e d i s p u t e ;

( 2 ) t h e a g r e e m e n t p r o v i d e s f o r a r b i t r a t i o n i n t h e t e r r i t o r y o f a s i g n a t o r y o f

t h e C o n v e n t i o n ;

( 3 ) t h e a g r e e m e n t a r i s e s o u t o f a l e g a l r e l a t i o n s h i p

, w h e t h e r c o n t r a c t u a l o r

n o t

, t h a t i s c o n s i d e r e d c o m m e r c i a l ; a n d

( 4 ) o n e p a r t y t o t h e a g r e e m e n t i s n o t a U n i t e d S t a t e s c i t i z e n

, o r t h e

c o m m e r c i a l r e l a t i o n s h i p a t i s s u e h a s s o m e r e a s o n a b l e r e l a t i o n w i t h a f o r e i g n

s t a t e

.

I d

. a t 1 2 9 4

– 9 5

.

T h e r e i s n o d i s p u t e t h a t t h e s e c o n d a n d f o u r t h j u r i s d i c t i o n a l p r e r e q u i s i t e s o f

t h e C o n v e n t i o n h a v e b e e n m e t

. A c c o r d i n g l y

, w e f i r s t c o n s i d e r T h o m a s ’ s a r g u m e n t

t h a t t h e f i r s t a n d t h i r d j u r i s d i c t i o n a l p r e r e q u i s i t e s h a v e n o t b e e n m e t a n d t h e n

c o n s i d e r h i s a f

f i r m a t i v e d e f

e n s e s

.

I I

. J u r i s d i c t i o n a l P r e r e q u i s i t e s o f t h e C o n v e n t i o n

A

. T h e a g r e e m e n t m u s t a r i s e o u t o f a c o m m e r c i a l l e

g a l r e l a t i o n s h i

p

.

T h o m a s a r g u e s t h a t s e a m a n e m p l o y m e n t c o n t r a c t s a r e n o t c o m m e r c i a l

c o n t r a c t s a n d t h e r e f

o r e a r e e x p r e s s l y e x e m p t f r o m a r b i t r a t i o n u n d e r t h e

C o n v e n t i o n

. H o w e v e r

, a s T h o m a s h a s a c k n o w l e d g e d

, w e h a v e p r e v i o u s l y h e l d

t h a t s e a m a n e m p l o y m e n t c o n t r a c t s a r e c o m m e r c i a l

. B a u t i s t a

, 3 9 6 F

. 3 d a t 1 2 9 5

– 9 6

.

W h i l e T h o m a s s u b m i t s t h a t t h i s d e c i s i o n w a s w r o n g a n d s h o u l d b e r e c o n s i d e r e d

,

7w e a r e b o u n d b y o u r p r i o r p r e c e d e n t

. A c c o r d i n g l y

, w e f i n d t h a t t h i s j u r i s d i c t i o n a l

r e q u i r e m e n t i s m e t

.

B

. T h e r e m u s t b e a n a g r e e m e n t i n w r i t i n g t o a r b i t r a t e t

h e d i s p u t e

.

T h o m a s a l s o a r g u e s t h a t t h e r e i s n o a g r e e m e n t t o a r b i t r a t e t h i s d i s p u t e

, i n

w r i t i n g o r o t h e r w i s e

, b e c a u s e t h e i n j u r i e s t h a t g a v e r i s e t o a l l o f h i s c l a i m s

o c c u r r e d b e f

o r e t h e N e w A g r e e m e n t c o n t a i n i n g t h e A r b i t r a t i o n C l a u s e w a s

e x e c u t e d

. I n t h e a l t e r n a t i v e h e a r g u e s t h a t

, e v e n i f s o m e o f t h e c l a i m s a r e s u b j e c t

t o t h e A r b i t r a t i o n C l a u s e

, t h e c o u r t e r r e d i n o r d e r i n g a r b i t r a t i o n o f a l l h i s c l a i m s

,

w h i c h i n c l u d e d t h o s e c l e a r l y a r i s i n g o u t o f h i s f i r s t t e r m o f e m p l o y m e n t w h i l e h i s

O l d A g r e e m e n t w a s i n e f f e c t

. C a r n i v a l r e s p o n d s t h a t t h e A r b i t r a t i o n C l a u s e

g o v e r n s b e c a u s e t h e s u i t w a s b r o u g h t a f t e r t h e N e w A g r e e m e n t w a s s i g n e d

.

C a r n i v a l a l s o s u g g e s t s t h a t t h e A r b i t r a t i o n C l a u s e i s r e t r o a c t i v e

.

T h e A r b i t r a t i o n C l a u s e a t i s s u e p r o v i d e s t h a t :

“ A n y a n d a l l d i s p u t e s a r i s i n g o u t o f o r i n c o n n e c t i o n w i t h t h i s

A g r e e m e n t

, i n c l u d i n g

. . . S e a f a r e r ’ s s e r v i c e o n t h i s v e s s e l s h a l l b e

r e f e r r e d t o

, a n d f

i n a l l y r e s o l v e d b y a r b i t r a t i o n

. . . . ”

( e m p h a s i s a d d e d )

. T h e e f f e c t i v e d a t e o f t h i s p r o v i s i o n s t a t e d t h a t :

“ [ T ] h e e m p l o y m e n t r e l a t i o n s b e t w e e n [ t h e p a r t i e s ] s h a l l b e g o v e r n e d

b y t h e t e r m s o f t h i s A g r e e m e n t c o m m e n c i n g o n t h e d a t e t h e S e a f a r e r

f i r s t s i g n s o n b o a r d t h e a s s i g n e d v e s s e l a f t e r s i g n i n g t h i s A g r e e m e n t

[ O c t o b e r 1 0

, 2 0 0 5 ] a n d c o n t i n u i n g f o r a p e r i o d o f t i m e w h i c h s h a l l n o t

e x c e e d a m a x i m u m s e r v i c e p e r i o d o f 1 0 m o n t h s

. ”

8T h o m a s b r o u g h t f o u r c l a i m s : ( 1 ) C a r n i v a l w a s n e g l i g e n t b o t h i n c a u s i n g t h e

a c c i d e n t r e s u l t i n g i n h i s i n j u r i e s a n d i t s i m m e d i a t e m e d i c a l r e s p o n s e ; ( 2 ) t h e v e s s e l

w a s u n s e a w o r t h y a t t h e t i m e o f t h e a c c i d e n t ; ( 3 ) h e d i d n o t r e c e i v e t h e a m o u n t o f

m a i n t e n a n c e a n d c u r e d u e t o h i m f r o m h i s i n

j u r y ; ( 4 ) h e h a s n o t r e c e i v e d a l l t h e

w a g e p a y m e n t s d u e t o h i m f r o m h i s e m p l o y m e n t

.

T h e d i s t r i c t c o u r t o r d e r e d a r b i t r a t i o n

, n o t i n g t h a t “ P l a i n t i f f ’ s c l a i m s a l l a r i s e

o u t o f h i s e m p l o y m e n t o n t h e I m a g i n a t i o n ” a n d i n t e r p r e t i n g t h e N e w A g r e e m e n t t o

r e q u i r e a r b i t r a t i o n o f “ a l l d i s p u t e s a r i s i n g o u t o f P l a i n t i f f ’ s s e r v i c e s o n t h e v e s s e l

. ”

W e b e l i e v e t h e d i s t r i c t c o u r t e r r e d i n t h i s a n a l y s i s

. T h e r e i s n o d o u b t t h a t

T h o m a s ’ s c l a i m s a r o s e o u t o f h i s e m p l o y m e n t o n t h e I m a g i n a t i o n

, b u t t h e r e l e v a n t

q u e s t i o n i s w h e t h e r t h e y a r o s e “ o u t o f o r i n c o n n e c t i o n w i t h t h i s [ N e w ]

A g r e e m e n t

, ” a s s e t f

o r t h i n t h e A r b i t r a t i o n C l a u s e

. I t i s n o t e n o u g h t h a t t h e d i s p u t e

s i m p l y a r o s e f

r o m h i s w o r k o n t h e I m a g i n a t i o n

, o r a r o s e a f t e r t h e N e w A g r e e m e n t

w a s s i g n e d

, f

o r t h a t m a t t e r

. T h e d i s p u t e s m u s t h a v e s o m e a c t u a l r e l a t i o n t o t h e

N e w A g r e e m e n t

, i r r e s p e c t i v e o f w h a t s h i p t h e c l a i m s o r i g i n a t e d f r o m a n d w h e n

s u i t w a s b r o u g h t

.

A s i s c l e a r f

r o m t h e f a c e o f T h o m a s ’ s o r i g i n a l c o m p l a i n t

, h i s c l a i m o f

n e g l i g e n c e u n d e r t h e J o n e s A c t ( C o u n t I ) a n d u n s e a w o r t h i n e s s ( C o u n t I I ) a r e

a l l e g a t i o n s t h a t i n v o l v e o n l y t h e e v e n t s s t e m m i n g f r o m t h e s l i p

- a n d

- f

a l l i n

92 0 0 4

— p r i o r t o t h e e x i s t e n c e o f

, a n d w i t h n o c o n n e c t i o n t o

, t h e N e w A g r e e m e n t

.

H e c o u l d h a v e b r o u g h t t h e e x a c t s a m e n e g l i g e n c e a n d u n s e a w o r t h i n e s s c l a i m s h a d

h e n e v e r e x e c u t e d t h e N e w A g r e e m e n t o r s i g n e d b a c k o n t o t h e I m a g i n a t i o n

. I n

f a c t

, h a d T h o m a s s i g n e d o n t o a n y v e s s e l o t h e r t h a n t h e I m a g i n a t i o n u n d e r a n

a g r e e m e n t w i t h s i m i l a r t e r m s a s t h e N e w A g r e e m e n t

, i t w o u l d b e p a t e n t l y c l e a r

t h a t t h e A r b i t r a t i o n C l a u s e

— w i t h i t s l a n g u a g e r e f e r r i n g t o d i s p u t e s a r i s i n g f r o m

“ t h i s v e s s e l ”

— w o u l d n o t a p p l y t o h i s n e g l i g e n c e a n d u n s e a w o r t h i n e s s c l a i m s

o r i g i n a t i n g f

r o m t h e I m a g i n a t i o n

.

A s t o t h e m a i n t e n a n c e a n d c u r e c l a i m ( C o u n t I I I )

, t h e i s s u e i s s l i g h t l y m o r e

c o m p l i c a t e d

. I n i t i a l l y t h e c l a i m c l e a r l y h a d n o c o n n e c t i o n t o t h e N e w A g r e e m e n t

b e c a u s e T h o m a s w a s o w e d m a i n t e n a n c e a n d c u r e f r o m t h e m o m e n t o f h i s i n j u r y

.

H o w e v e r

, t h e f

a c t t h a t h e a t t e m p t e d t o r e t u r n t o w o r k m u l t i p l e t i m e s

, t h e l a s t

a t t e m p t o f w h i c h w a s g o v e r n e d b y t h e N e w A g r e e m e n t

, r e q u i r e s f u r t h e r a n a l y s i s

.

S p e c i f i c a l l y

, w e m u s t a d d r e s s w h e t h e r h i s r e t u r n t o w o r k a t a n y p o i n t e i t h e r ( 1 )

t e r m i n a t e d C a r n i v a l ’ s m a i n t e n a n c e a n d c u r e o b l i g a t i o n s o r ( 2 ) c r e a t e d m u l t i p l e

m a i n t e n a n c e a n d c u r e c l a i m s g o v e r n e d b y d i f f e r e n t S e a f

a r e r ’ s A g r e e m e n t s

. W e

b e l i e v e i t d i d n e i t h e r

.

I n a s c e r t a i n i n g t h e e x t e n t o f t h e c o v e r a g e o f t h i s c l a i m

, w e h a v e h e l d t h a t t h e

t o u c h s t o n e i n q u i r y t o d e t e r m i n e i f a n o b l i g a t i o n h a s b e e n t e r m i n a t e d i s w h e t h e r t h e

10s e a m a n h a s r e c o v e r e d t o a “ p r e

- a c c i d e n t c o n d i t i o n

. ” S e e B r o w n v

. A g g i e & M i l l i e

,

I n c

. , 4 8 5 F

. 2 d 1 2 9 3

, 1 2 9 6 ( 5 t h C i r

. 1 9 7 3 ) ( “ F e d e r a l m a r i t i m e l a w d o e s n o t r e q u i r e

a n i n j u r e d s e a m a n t o f

o r f e i t p a y m e n t s o f e i t h e r m a i n t e n a n c e o r c u r e i f t h e r e

r e m a i n s a r e a s o n a b l e p o s s i b i l i t y t h a t f u r t h e r t r e a t m e n t w i l l a i d i n r e s t o r i n g h i m t o

h i s p r e

- a c c i d e n t c o n d i t i o n

. ” )

. W e h a v e s u b s e q u e n t l y e x p l i c i t l y r u l e d t h a t “ t h e 7

c u t

- o f f p o i n t f o r m a i n t e n a n c e a n d c u r e i s n o t t h a t a t w h i c h t h e s e a m a n r e c o v e r s

s u f f i c i e n t l y t o r e t u r n t o h i s o l d j o b b u t r a t h e r t h e t i m e o f m a x i m u m p o s s i b l e c u r e

. ”

L i r e t t e v

. K & B B o a t R e n t a l s

, I n c

. , 5 7 9 F

. 2 d 9 6 8

, 9 6 9 ( 5 t h C i r

. 1 9 7 8 )

. F r o m t h i s

r e c o r d

, i t d o e s n o t a p p e a r t h a t T h o m a s h a s r e a c h e d m a x i m u m p o s s i b l e c u r e

. T h e

f a c t t h a t T h o m a s ( u n s u c c e s s f u l l y ) a t t e m p t e d t o r e t u r n t o w o r k d u r i n g h i s

e m p l o y m e n t o r s i g n e d a n e w c o n t r a c t h a s n o b e a r i n g o n h i s p r e

- e x i s t i n g

m a i n t e n a n c e a n d c u r e c l a i m a r i s i n g f r o m h i s i n i t i a l i n

j u r i e s ; i t d i d n o t t e r m i n a t e

C a r n v i v a l ’ s e x i s t i n g o b l i g a t i o n s n o r d i d i t c r e a t e m u l t i p l e c l a i m s

. A c c o r d i n g l y

, t h e

m a i n t e n a n c e a n d c u r e c l a i m d o e s n o t “ a r i s e o u t o f o r i n c o n n e c t i o n w i t h t h e [ N e w ]

A g r e e m e n t

. ”

A s t o t h e S e a m a n ’ s W a g e A c t c l a i m ( C o u n t I V )

, t h e i s s u e i s t h e c l o s e s t

.

T h i s a c t

, i n t e r a l i a

, p r o v i d e s t h a t s e a m e n a r e e n t i t l e d t o t h e b a l a n c e o f t h e i r w a g e s

I n Bonne r v. City

of Prichar d, 661 F.2d 1206, 1209 ( 11th Cir. 1981) (en banc), this court 7

adopted as binding prece dent all decisions o f t h e fo rmer Fifth C ircuit handed down prior to close

of business on September 30, 1981.

11b y t h e e a r l i e r o f t w e n t y

- f o u r h o u r s a f

t e r t h e c a r g o h a s b e e n d i s c h a r g e d o r f o u r d a y s

a f t e r t h e s e a m a n h i m s e l f h a s b e e n d i s c h a r g e d

. 4 6 U

. S

. C

. § 1 0 3 1 3 ( f )

. B a s e d o n t h e

b r i e f s

, i t i s u n c l e a r f

r o m w h a t p e r i o d o f e m p l o y m e n t T h o m a s c l a i m s h e i s o w e d

. I f

i t i s f o r h i s e m p l o y m e n t t e r m o n t h e s h i p b e f o r e O c t o b e r 1 0

, 2 0 0 5

— w h i c h i s

g o v e r n e d b y t h e O l d A g r e e m e n t

— t h e n t h i s a l s o d o e s n o t “ a r i s e o u t o f o r i n

c o n n e c t i o n w i t h t h e [ N e w ] A g r e e m e n t

. ” H o w e v e r

, t o t h e e x t e n t h e c l a i m s w a g e s

f o r a n y p e r i o d o f t i m e t h a t o c c u r r e d a f t e r t h e N e w A g r e e m e n t w a s s i g n e d

, t h a t

a s p e c t o f t h e c l a i m m a y b e c o v e r e d u n d e r a r b i t r a t i o n

. U n l i k e t h e o t h e r c l a i m s

,

s u c h a c o m p o n e n t w o u l d f a i r l y b e s a i d t o b e “ i n c o n n e c t i o n w i t h ” t h e N e w

A g r e e m e n t b e c a u s e T h o m a s w o u l d n o t h a v e b e e n e n t i t l e d t o a n y f u r t h e r w a g e s b u t

f o r s i g n i n g t h i s c o n t r a c t

.

T h u s

, n o c l a i m b u t t h i s l a s t m e e t s t h e w r i t i n g r e q u i r e m e n t o f t h e C o n v e n t i o n

,

u n l e s s

, a s C a r n i v a l a r g u e s

, t h e a r b i t r a t i o n c l a u s e i s r e t r o a c t i v e

. H o w e v e r

, w e f i n d

t h a t t h e N e w A g r e e m e n t w a s n o t i n t e n d e d t o b e r e t r o a c t i v e s u c h t h a t i t s u p e r s e d e s

a n y p r e v i o u s a g r e e m e n t s

. I n c o n t r a c t i n t e r p r e t a t i o n

, w e c a n g l e a n i n t e n t n o t o n l y

f r o m w h a t i s s a i d b u t w h a t i s n o t s a i d

. T h e N e w A g r e e m e n t

, w h i c h w a s q u i t e

t h o r o u g h

, n o t a b l y d i d n o t s p e c i f y t h a t “ d i s p u t e s a r i s i n g o u t o f o r i n c o n n e c t i o n w i t h

t h i s o r a n y p r e v i o u s A g r e e m e n t

, i n c l u d i n g

. . . S e a f a r e r ’ s s e r v i c e o n t h i s v e s s e l

s h a l l b e r e f

e r r e d t o

, a n d f

i n a l l y r e s o l v e d b y a r b i t r a t i o n

. ” W e t h i n k i f t h e p a r t i e s

12h a d i n t e n d e d r e t r o a c t i v i t y

, t h e y w o u l d h a v e e x p l i c i t l y s a i d s o

. S e e

, e

. g

. , S a n d v i k

A B v

. A d v e n t I n t ’ l C o r p

. , 2 2 0 F

. 3 d 9 9

, 1 0 6 ( 3 d C i r

. 2 0 0 0 ) ( “ B e f o r e a p a r t y t o a

l a w s u i t c a n b e o r d e r e d t o a r b i t r a t e a n d t h u s b e d e p r i v e d o f a d a y i n c o u r t

, t h e r e

s h o u l d b e a n e x p r e s s

, u n e q u i v o c a l a g r e e m e n t t o t h a t e f f e c t

. ” )

. 8

R e a d i n g t h e c o n t r a c t o n i t s f a c e

, a s w e m u s t

, w e a r e r e q u i r e d t o s e p a r a t e

T h o m a s ’ s c l a i m s i n t o t h o s e t h a t “ a r i s e o u t o f o r i n c o n n e c t i o n w i t h t h e [ N e w ]

A g r e e m e n t ” a n d t h o s e t h a t d o n o t

. A l t h o u g h i t w o u l d b e m o r e e f f i c i e n t t o t r y a l l

c l a i m s t o g e t h e r

, t h e S u p r e m e C o u r t h a s s t a t e d t h a t e f f i c i e n c y d o e s n o t t r u m p

r e s o l u t i o n i n t h e p r o p e r f o r u m : “ [ T h e ] A r b i t r a t i o n A c t r e q u i r e s d i s t r i c t c o u r t s t o

c o m p e l a r b i t r a t i o n o f p e n d e n t a r b i t r a b l e c l a i m s w h e n o n e o f t h e p a r t i e s f i l e s a

m o t i o n t o c o m p e l

, e v e n w h e r e t h e r e s u l t w o u l d b e t h e p o s s i b l y i n e f f i c i e n t

m a i n t e n a n c e o f s e p a r a t e p r o c e e d i n g s i n d i f f e r e n t f o r u m s

. ” D e a n W i t t e r R e y n o l d s

I n c

. v

. B y r d

, 4 7 0 U

. S

. 2 1 3

, 2 1 7 ( 1 9 8 5 )

. T h e c o r o l l a r y i s t h a t a c o u r t c a n n o t

s h o e h o r n p e n d e n t n o n

- a r b i t r a b l e c l a i m s i n t o a r b i t r a t i o n b a s e d o n “ i t s o w n v i e w s o f

e c o n o m y a n d e f

f i c i e n c y

. ” I d

. B e c a u s e t h e J o n e s A c t n e g l i g e n c e c l a i m

, t h e

u n s e a w o r t h i n e s s c l a i m

, t h e m a i n t e n a n c e a n d c u r e c l a i m

, a n d p a r t o f t h e S e a m a n ’ s

The district c ourt, as additional support for its de cision, found that the Arbitration Clause 8

was re troac tive, citing to a case noting that “an arbitra tion a g ree ment may be applied re troac tively

to transac tions which occur red prior to executio n of the arbitra tion ag ree ment.” Merr ill L y nch,

Pie rc e, Fe nner & Smit h, I nc. v. King

, 804 F. Supp. 1512, 1514 (M.D. Fla. 1992). Howeve r, that

case involved an arbitra tion ag ree ment that “state[d] that i t ap plies to all transac tions ‘whe ther

enter ed i n to prior, on, or subsequent to the date here of.’” That is, the ag ree ment in that case

expli citly stated it would be re troac tive.

13W a g e A c t c l a i m ( a s i t p e r t a i n s t o a n y o b l i g a t i o n s i n c u r r e d b e f o r e O c t o b e r 1 0

,

2 0 0 5 ) d o n o t f

a l l u n d e r t h e C o n v e n t i o n

, t h e y a r e e l i g i b l e t o b e l i t i g a t e d

.

A c c o r d i n g l y

, t h e d i s t r i c t c o u r t e r r e d i n c o m p e l l i n g a r b i t r a t i o n a s t o t h o s e c l a i m s

.

H o w e v e r

, a c l a i m f

o r s e a m a n ’ s w a g e s u n d e r T h o m a s ’ s m o s t r e c e n t t e r m o f

e m p l o y m e n t i s c o v e r e d u n d e r t h e N e w A g r e e m e n t

. T h u s

, a s t o t h i s p o r t i o n o f t h e

c l a i m

, w e m u s t c o n s i d e r T h o m a s ’ s a f f i r m a t i v e d e f

e n s e u n d e r t h e C o n v e n t i o n t h a t

t h e e n f o r c e m e n t o f t h e A r b i t r a t i o n C l a u s e s h o u l d b e p r e c l u d e d a s a v i o l a t i o n o f

p u b l i c p o l i c y

.

I I I

. A f f i r m a t i v e D e f

e n s e s U n d e r t h e C o n v e n t i o n

A r t i c l e V o f t h e C o n v e n t i o n p r o v i d e s s p e c i f i c a f f i r m a t i v e d e f

e n s e s t o a s u i t

t h a t s e e k s a c o u r t t o c o m p e l a r b i t r a t i o n i n c l u d i n g t h e f o l l o w i n g :

R e c o g n i t i o n a n d e n f

o r c e m e n t o f a n a r b i t r a l a w a r d m a y a l s o b e r e f u s e d

i f t h e c o m p e t e n t a u t h o r i t y i n t h e c o u n t r y w h e r e r e c o g n i t i o n a n d

e n f o r c e m e n t i s s o u g h t f

i n d s t h a t

. . . [ t ] h e r e c o g n i t i o n o r e n f o r c e m e n t

o f t h e a w a r d w o u l d b e c o n t r a r y t o t h e p u b l i c p o l i c y o f t h a t c o u n t r y

.

A r t i c l e V ( 2 ) ( b )

. C i t i n g t o S u p r e m e C o u r t p r e c e d e n t

, T h o m a s a r g u e s t h a t t h e

A r b i t r a t i o n C l a u s e

, w h i c h f o r c e s h i m t o r e s o l v e a n y d i s p u t e s i n a n a r b i t r a l f o r u m

t h a t m u s t a p p l y n o n

- U

. S

. l a w

, e f f e c t u a t e s a w a i v e r o f h i s U

. S

. s t a t u t o r y r i g h t s i n

v i o l a t i o n o f p u b l i c p o l i c y a n d

, t h e r e f o r e

, s h o u l d n o t b e e n f

o r c e d

. B o t h p a r t i e s r e l y

9

Thomas also arg ues t hat he is barr ed from bring ing his J ones Act claim, but we need not 9

addre ss this aspec t of the arg ument as we have alre ady held that it does not fall under the Arbitration

Clause.

14o n t h e t w o c a s e s f r o m t h e S u p r e m e C o u r t t h a t d i s c u s s t h e c o n c e r n s e x p r e s s e d i n

t h i s p a r t i c u l a r a f

f i r m a t i v e d e f

e n s e u n d e r t h e C o n v e n t i o n

.

I n M i t s u b i s h i M o t o r C o r p

. v

. S o l e r C h r y s l e r P l y m o u t h

, I n c

. , M i t s u b i s h i

, a

J a p a n e s e c a r m a n u f

a c t u r e r

, b r o u g h t s u i t a g a i n s t i t s P u e r t o R i c a n d i s t r i b u t o r o v e r a

d i s p u t e r e l a t e d t o t h e i r s a l e s a g r e e m e n t a n d s o u g h t e n f o r c e m e n t o f t h e a g r e e m e n t ’ s

a r b i t r a t i o n c l a u s e

. 4 7 3 U

. S

. 6 1 4 ( 1 9 8 5 )

. I n t h e c o u n t e r c l a i m

, t h e D i s t r i b u t o r 1 0

i n c l u d e d a c o u n t a l l e g i n g S h e r m a n A c t v i o l a t i o n s

. T h e D i s t r i b u t o r s o u g h t t o

e x e m p t t h i s c l a i m f

r o m t h e r e a c h o f t h e a r b i t r a t i o n c l a u s e o n t h e g r o u n d s t h a t

a r b i t r a t i o n w a s n o t a n a p p r o p r i a t e f o r u m f o r a n t i t r u s t c l a i m s a n d t h e p u b l i c i n t e r e s t

i n t h e s t a t u t o r y s c h e m e o f t h e S h e r m a n A c t w o u l d n o t b e v i n d i c a t e d

. T h e c o u r t 1 1

f o u n d t h a t e n f

o r c i n g s u c h a n a g r e e m e n t i n t h e i n t e r n a t i o n a l c o n t e x t w o u l d n o t

v i o l a t e U

. S

. p u b l i c p o l i c y b e c a u s e t h e p a r t i e s h a d a g r e e d t h a t A m e r i c a n l a w w o u l d

,

i n f a c t

, b e a p p l i e d t o t h e a n t i t r u s t c l a i m s i n t h e J a p a n e s e a r b i t r a t i o n p r o c e e d i n g s

.

T h e C o u r t s p e c i f

i c a l l y n o t e d t h a t c o u n s e l f o r M i t s u b i s h i c o n c e d e d a t o r a l a r g u m e n t

t h a t A m e r i c a n l a w w o u l d a p p l y t o t h e a n t i t r u s t c l a i m s a n d r e p r e s e n t e d t h a t t h e

The ag ree ment at issue contained a clause providing for arbitration by the J apan 1 0

Commercial Arbitration Association of a ll disput es ar ising out of c erta in a rticles of the ag ree ment

or for the bre ach the reof

.

For support, the Dis tributor cited to a S ec o n d C i rc u it case that, in resolving a domesti c 1 1

arbitra tion dispute, distinguished betwee n contra ctual and statutory rig hts a nd found that Sherman

claims could never be arbitra ted as they wer e an important part o f t h e en forc ement scheme of

antitrust law. Americ an Safety Equipment Corp. v. J

. P. Mag uire & Co., 391 F.2d 821 (2nd Cir.

1968).

15c l a i m s h a d b e e n s u b m i t t e d t o t h e a r b i t r a t i o n p a n e l i n J a p a n o n t h a t b a s i s

. I d

. a t 6 3 7

n

. 1 9

. T h u s

, U

. S

. s t a t u t o r y r i g h t s

, w h i l e n o t b e i n g h e a r d b y a f e d e r a l j u d g e

, w e r e

n o n e t h e l e s s n o t b e i n g i g n o r e d o r v i o l a t e d b u t s p e c i f i c a l l y p r o t e c t e d : 1 2

T o b e s u r e

, t h e i n t e r n a t i o n a l a r b i t r a l t r i b u n a l o w e s n o p r i o r a l l e g i a n c e

t o t h e l e g a l n o r m s o f p a r t i c u l a r s t a t e s ; h e n c e

, i t h a s n o d i r e c t

o b l i g a t i o n t o v i n d i c a t e t h e i r s t a t u t o r y d i c t a t e s

. T h e t r i b u n a l

, h o w e v e r

, i s b o u n d t o e f

f e c t u a t e t h e i n t e n t i o n s o f t h e p a r t i e s

. W h e r e t h e p a r t i e s

h a v e a g r e e d t h a t t h e a r b i t r a l b o d y i s t o d e c i d e a d e f i n e d s e t o f c l a i m s

w h i c h i n c l u d e s

, a s i n t h e s e c a s e s

, t h o s e a r i s i n g f r o m t h e a p p l i c a t i o n o f

A m e r i c a n a n t i t r u s t l a w

, t h e t r i b u n a l t h e r e f o r e s h o u l d b e b o u n d t o

d e c i d e t h a t d i s p u t e i n a c c o r d w i t h t h e n a t i o n a l l a w g i v i n g r i s e t o t h e

c l a i m

. A n d s o l o n g a s t h e p r o s p e c t i v e l i t i g a n t e f f e c t i v e l y m a y

v i n d i c a t e i t s s t a t u t o r y c a u s e o f a c t i o n i n t h e a r b i t r a l f o r u m

, t h e s t a t u t e

w i l l c o n t i n u e t o s e r v e b o t h i t s r e m e d i a l a n d d e t e r r e n t f u n c t i o n

.

I d

. a t 6 3 6

– 3 7 ( e m p h a s i s a d d e d )

. T h e C o u r t d i d

, h o w e v e r

, n o t e t h a t i f “ t h e

c h o i c e

- o f

- f o r u m a n d c h o i c e

- o f

- l a w c l a u s e s o p e r a t e d i n t a n d e m a s a p r o s p e c t i v e

w a i v e r o f a p a r t y ’ s r i g h t t o p u r s u e s t a t u t o r y r e m e d i e s

. . . , w e w o u l d h a v e l i t t l e

h e s i t a t i o n i n c o n d e m n i n g t h e a g r e e m e n t a s a g a i n s t p u b l i c p o l i c y

. ” I d

. a t 6 3 7 n

. 1 9

.

T h e a g r e e m e n t ’ s c h o i c e o f a n a r b i t r a b l e f o r u m

, b y i t s e l f

, i s n o t a c a u s e f

o r

c o n c e r n

. A s t h e S u p r e m e C o u r t s a i d

, s t a t u t o r y r i g h t s c a n b e v i n d i c a t e d i n

a r b i t r a t i o n a s w e l l a s i n c o u r t :

B y a g r e e i n g t o a r b i t r a t e a s t a t u t o r y c l a i m

, a p a r t y d o e s n o t f o r g o t h e

s u b s t a n t i v e r i g h t s a f

f o r d e d b y t h e s t a t u t e ; i t o n l y s u b m i t s t o t h e i r

Although the Distributor’s claim was based on the Second Circuit’s decision in Americ an 1 2

Safety rathe r than the aff irmative defe nse provision of the Convention, the conce rns rela ting to

vindicating the public intere st and policy of the United States a

re none theless similar.

16r e s o l u t i o n i n a n a r b i t r a l

, r a t h e r t h a n a j u d i c i a l

, f o r u m

. I t t r a d e s t h e

p r o c e d u r e s a n d o p p o r t u n i t y f o r r e v i e w o f t h e c o u r t r o o m f o r t h e

s i m p l i c i t y

, i n f

o r m a l i t y

, a n d e x p e d i t i o n o f a r b i t r a t i o n

M i t s u b i s h i

, 4 7 7 U

. S

. a t 6 2 8

.

T h e i m p o r t a n t q u e s t i o n

, h o w e v e r

, i s c h o i c e o f l a w : W h a t l a w w i l l a p p l y i n

t h a t a r b i t r a l f

o r u m ? A s n o t e d

, i n M i t s u b i s h i

, t h e p a r t y s e e k i n g t o c o m p e l

a r b i t r a t i o n c o n c e d e d t h a t U

. S

. l a w w o u l d a p p l y i n t h e a r b i t r a t i o n o f t h e a n t i t r u s t

c l a i m s t h e r e

. I n t h i s c a s e

, h o w e v e r

, t h e r e i s n o s u c h a s s u r a n c e i n e i t h e r t h e N e w

A g r e e m e n t o r t h e r e p r e s e n t a t i o n s o f C a r n i v a l ’ s c o u n s e l t h a t U

. S

. l a w w i l l a p p l y

.

O n t h e c o n t r a r y

, t h e N e w A g r e e m e n t e x p l i c i t l y s t a t e s t h a t P a n a m a n i a n l a w w i l l

a p p l y

.

T h e S u p r e m e C o u r t r e v i s i t e d t h e q u e s t i o n o f w h e t h e r a n i n t e r n a t i o n a l

a r b i t r a t i o n c l a u s e c o u l d v i o l a t e U

. S

. p u b l i c p o l i c y i n V i m a r S e g u r o s Y R e a s e g u r o s

v

. M / V S k y R e e f

e r

, w h i c h i n v o l v e d a d i s p u t e b e t w e e n a N e w Y o r k f r u i t d i s t r i b u t o r

a n d a J a p a n e s e c a r r i e r

. 5 1 5 U

. S

. 5 2 8 ( 1 9 9 5 )

. T h e D i s t r i b u t o r h a d p u r c h a s e d

o r a n g e s f r o m a f o r e i g n s u p p l i e r a n d c o n t r a c t e d w i t h t h e C a r r i e r t o t r a n s p o r t t h e m t o

t h e U n i t e d S t a t e s b y c a r g o s h i p

. T h e f r u i t a r r i v e d w i t h s i g n i f

i c a n t d a m a g e a n d t h e

D i s t r i b u t o r s u e d t h e C a r r i e r t o r e c o v e r i t s l o s s e s

. T h e C a r r i e r m o v e d t o s t a y t h e

a c t i o n a n d t o c o m p e l a r b i t r a t i o n i n J a p a n p u r s u a n t t o t h e a r b i t r a t i o n c l a u s e i n t h e

17b i l l o f l a d i n g i n c o n j u n c t i o n w i t h t h e e n f

o r c e m e n t p r o v i s i o n s o f t h e F A A

. T h e 1 3

D i s t r i b u t o r a r g u e d t h a t t h e a r b i t r a t i o n c l a u s e w a s u n e n f o r c e a b l e u n d e r t h e F A A

b e c a u s e

, i n t e r a l i a

, i t w o u l d v i o l a t e t h e C a r r i a g e o f G o o d s b y S e a A c t

( C O G S A )

— t h e U

. S

. e n a c t m e n t o f t h e H a g u e R u l e s

— a n d t o c o m p e l a r b i t r a t i o n

1 4

w o u l d v i o l a t e U

. S

. p u b l i c p o l i c y

. S p e c i f i c a l l y

, i t c l a i m e d t h a t t h e f o r e i g n

a r b i t r a t o r s w o u l d a p p l y t h e J a p a n e s e e n a c t m e n t o f t h e H a g u e R u l e s

, w h i c h w o u l d

s i g n i f i c a n t l y l e s s e n t h e C a r r i e r ’ s l i a b i l i t y i n v i o l a t i o n o f “ t h e c e n t r a l g u a r a n t e e ” o f

C O G S A

. I d

. a t 5 3 9

. T h e C o u r t n o t e d t h a t

, “ T h e r e l e v a n t q u e s t i o n

, t h e r e f o r e

, i s

w h e t h e r t h e s u b s t a n t i v e l a w t o b e a p p l i e d w i l l r e d u c e t h e c a r r i e r ’ s o b l i g a t i o n s t o

t h e c a r g o o w n e r b e l o w w h a t C O G S A g u a r a n t e e s

. ” I d

. I t t h e n h e l d

,

W h a t e v e r t h e m e r i t s o f p e t i t i o n e r ’ s c o m p a r a t i v e r e a d i n g o f C O G S A

A bill of lading is document issued by a car rier to a shipper, acknow ledg ing that specifie d 1 3

g oods have been rec eived on b o ard as car g o for convey ance to a named place for delivery to the

co n s i gn ee wh o is usually identified. The form bill of lading at issue contained a clause which

provided that (1) the contra ct evidenc ed by or contained in the bill of lading was g overne d by

J apane se law, and (2) any dispute arising from the bill of lading was to be ref err ed to arbitra tion in

Toky o, J apan, by

the Toky o Maritime Arbitra tion Com mission.

COGSA is a U.S. sta t u t e go v er ning the rig hts and responsibilities betwee n shippers of 1 4

car g o and ship opera tors reg arding ocea n shipments to and from the United States. I t is the U.S.

enac tment of the I nterna tional Convention Re gar d i n g Bills of L ading

, commonly known as the

“Ha g ue Rules.” Congr ess, conce rned that the Hag ue Rules did not offe r shippers enoug h protec tion

ag ainst damag e to car g o by shipowners, amende d the Hag ue Rules t o i n crease the protec tion to

car g o owner s.

The centr al g uara

ntee of § 3(8) of COGSA is that the terms of a bill of lading may not relieve

the car rier of the obliga tions or diminis h the leg al duties specifie d by the Act. Namely

, any clause

in a contract of car

riag e relieving or l essening the l iability the l iability of a car rier or s h i p fo r l oss

or dama g es ar ising fr om neg lige nce, f ault, or fa ilure in the dut ies or obl iga tions provided in § 3 is

null and void and of no e ffe ct.

18a n d i t s J a p a n e s e c o u n t e r p a r t

, i t s c l a i m i s p r e m a t u r e

. A t t h i s

i n t e r l o c u t o r y s t a g e i t i s n o t e s t a b l i s h e d w h a t l a w t h e a r b i t r a t o r s w i l l

a p p l y t o p e t i t i o n e r ’ s c l a i m s o r t h a t p e t i t i o n e r w i l l r e c e i v e d i m i n i s h e d

p r o t e c t i o n a s a r e s u l t

. T h e a r b i t r a t o r s m a y c o n c l u d e t h a t C O G S A

a p p l i e s o f i t s o w n f

o r c e o r t h a t J a p a n e s e l a w d o e s n o t a p p l y s o t h a t

,

u n d e r a n o t h e r c l a u s e o f t h e b i l l o f l a d i n g

, C O G S A c o n t r o l s

.

I d

. a t 5 4 0

. T h e C o u r t a g a i n n o t e d

, h o w e v e r

, t h a t “ [ w ] e r e t h e r e n o s u b s e q u e n t

1 5

o p p o r t u n i t y f

o r r e v i e w a n d w e r e w e p e r s u a d e d t h a t ‘ t h e c h o i c e

- o f

- f o r u m a n d

c h o i c e

- o f

- l a w c l a u s e s o p e r a t e d i n t a n d e m a s a p r o s p e c t i v e w a i v e r o f a p a r t y ’ s r i g h t

t o p u r s u e s t a t u t o r y r e m e d i e s

. . . , w e w o u l d h a v e l i t t l e h e s i t a t i o n i n c o n d e m n i n g

t h e a g r e e m e n t a s a g a i n s t p u b l i c p o l i c y

. ’ ” I d

. ( q u o t i n g M i t s u b i s h i

, 4 7 3 U

. S

. a t 6 3 7

n

. 1 9 )

.

V i m a r p r e s e n t e d a s l i g h t l y d i f f e r e n t s c e n a r i o t h a n M i t s u b i s h i

. I n t h e l a t t e r

t h e r e w a s n o d o u b t t h a t A m e r i c a n l a w w o u l d a p p l y ; i n V i m a r

, a l t h o u g h a t t h e t i m e

o f t h e a p p e a l

, i t w a s u n k n o w n w h i c h c o u n t r y ’ s l a w s w o u l d g o v e r n

, i t w a s p o s s i b l e

t h a t U

. S

. l a w m i g h t a p p l y

, a n d g i v e n t h a t t h e p r o c e e d i n g s w e r e a t a n i n t e r l o c u t o r y

s t a g e

, t h e r e w o u l d b e a n o t h e r o p p o r t u n i t y t o r e v i e w t h e c a s e o n c e t h e p l a i n t i f f

s o u g h t e n f

o r c e m e n t o f t h e a w a r d

. I n t h e c a s e b e f o r e u s

, h o w e v e r

, i t i s u n d i s p u t e d

t h a t

, r e g a r d l e s s o f t h e p r o c e d u r a l p o s t u r e o f t h e c a s e

, U

. S

. l a w w i l l n e v e r b e

The Supreme Court rea ffirme d Vimar’s emphasis on the proce dural postu re o f t he 1 5

arbi t ra t i o n dispute in PacifiCare Hea lth Sy stems v. Book when it upheld arbitra tion of a claim

beca use, as in Vimar, it was “‘me re specula tion’ that an arbitra tor might interpre t these ambig uous

ag ree ments in a manner that casts their enfor cea bility into doubt.” 538 U.S. 401, 407 (2003) (citing

Vimar, 515 U.S. at 541).

19a p p l i e d i n r e s o l v i n g t h e r e s o l u t i o n o f T h o m a s ’ s c l a i m s

.

T h e C o u r t

, t h e n

, h a s h e l d t h a t a r b i t r a t i o n c l a u s e s s h o u l d b e u p h e l d i f i t i s

e v i d e n t t h a t e i t h e r U

. S

. l a w d e f i n i t e l y w i l l b e a p p l i e d o r i f

, t h e r e i s a p o s s i b i l i t y t h a t

i t m i g h t a p p l y a n d t h e r e w i l l b e l a t e r r e v i e w

. T h e a r b i t r a t i o n c l a u s e s t h a t p r o v i d e d

t h e b a s e s f

o r t h e s e h o l d i n g s a r e i n d i r e c t c o n t r a d i s t i n c t i o n t o t h e A r b i t r a t i o n C l a u s e

i n t h e p r e s e n t c a s e

, w h i c h s p e c i f i e s e x a n t e t h a t o n l y f

o r e i g n l a w w o u l d a p p l y i n

a r b i t r a t i o n

. T h e r e i s n o u n c e r t a i n t y a s t o t h e g o v e r n i n g l a w i n t h e s e p r o p o s e d

a r b i t r a l p r o c e e d i n g s

— o n l y P a n a m a n i a n l a w w i l l b e a p p l i e d

. T h e N e w A g r e e m e n t

p r o v i d e s :

T h i s A g r e e m e n t s h a l l b e g o v e r n e d b y

, a n d a l l d i s p u t e s a r i s i n g u n d e r

o r i n c o n n e c t i o n w i t h t h i s A g r e e m e n t o r S e a f a r e r ’ s s e r v i c e o n t h e

v e s s e l s h a l l b e r e s o l v e d i n a c c o r d a n c e w i t h

, t h e l a w s o f t h e f l a g o f t h e

v e s s e l o n w h i c h S e a f

a r e r i s a s s i g n e d a t t h e t i m e t h e c a u s e o f a c t i o n

a c c r u e s

, w i t h o u t r e g a r d t o p r i n c i p l e s o f c o n f l i c t s o f l a w s t h e r e u n d e r

.

T h e p a r t i e s a g r e e t o t h i s g o v e r n i n g l a w

, n o t w i t h s t a n d i n g a n y c l a i m s

f o r n e g l i g e n c e

, u n s e a w o r t h i n e s s

, m a i n t e n a n c e

, c u r e

, f a i l u r e t o p r o v i d e

p r o m p t

, p r o p e r a n d a d e q u a t e m e d i c a l c a r e

, w a g e s

, p e r s o n a l i n j u r y

, o r

p r o p e r t y d a m a g e w h i c h m i g h t b e a v a i l a b l e u n d e r t h e l a w s o f a n y o t h e r

j u r i s d i c t i o n

.

T h e r e i s n o d i s p u t e t h a t t h e I m a g i n a t i o n ’ s f l a g o f c o n v e n i e n c e i s P a n a m a n i a n n o r

t h a t T h o m a s ’ s S e a m a n ’ s W a g e A c t c l a i m i s a U

. S

. s t a t u t o r y r e m e d y

. T h u s

, u n d e r

t h e t e r m s o f t h e A r b i t r a t i o n C l a u s e

, T h o m a s m u s t a r b i t r a t e i n t h e P h i l i p p i n e s

( c h o i c e

- o f

- f o r u m ) u n d e r t h e l a w o f P a n a m a ( c h o i c e

- o f

- l a w )

. A s t h e a r b i t r a t o r i s

b o u n d t o e f

f e c t u a t e t h e i n t e n t o f t h e p a r t i e s i r r e s p e c t i v e o f a n y p u b l i c p o l i c y

20c o n s i d e r a t i o n s

, t h e s e a r b i t r a t i o n r e q u i r e m e n t s h a v e “ o p e r a t e d i n t a n d e m ” t o

c o m p l e t e l y b a r T h o m a s f r o m r e l y i n g o n a n y U

. S

. s t a t u t o r i l y

- c r e a t e d c a u s e s o f

a c t i o n

. T h i s i n a b i l i t y t o b r i n g a S e a m a n ’ s W a g e A c t c l a i m c e r t a i n l y q u a l i f i e s a s a

“ p r o s p e c t i v e w a i v e r ” o f r i g h t s

, i n c l u d i n g o n e o f a p r i v a t e l i t i g a n t ’ s “ c h i e f t o o l s ” o f

s t a t u t o r y e n f

o r c e m e n t

— t h e A c t ’ s t r e b l e

- d a m a g e s w a g e p e n a l t y p r o v i s i o n f o r l a t e

p a y m e n t s

, s e e

, e

. g

. , M i t s u b i s h i

, 4 7 3 U

. S

. a t 6 3 5 ( “ T h e t r e b l e

- d a m a g e s p r o v i s i o n

w i e l d e d b y t h e p r i v a t e l i t i g a n t i s a c h i e f t o o l i n t h e a n t i t r u s t e n f o r c e m e n t s c h e m e

,

p o s i n g a c r u c i a l d e t e r r e n t t o p o t e n t i a l v i o l a t o r s

. ” )

. 1 6

M o r e o v e r

, t h e r e i s n o a s s u r a n c e o f a n “ o p p o r t u n i t y f o r r e v i e w ” o f T h o m a s ’ s

S e a m a n ’ s W a g e A c t c l a i m

. A l t h o u g h w e a r e a t a n i n t e r l o c u t o r y s t a g e

, t h e

p o s s i b i l i t y o f a n y l a t e r o p p o r t u n i t y p r e s u p p o s e s t h a t a r b i t r a t i o n w i l l p r o d u c e s o m e

a w a r d w h i c h t h e p l a i n t i f f c a n s e e k t o e n f

o r c e

. B u t

, i n a c c o r d a n c e w i t h o u r

h o l d i n g s a b o v e

, i n t h i s c a s e T h o m a s w o u l d o n l y b e a r b i t r a t i n g a s i n g l e i s s u e

— t h e

Whil e the Supreme Court has n o t b een confronte d with an arbitration clause that would 1 6

act as a prospec tive waiver

, lower fede ral courts apply ing Vimar have. See Central

National-G ottesman, I nc. v. M.V. “Ge rtrude Oldendorf f”, 204 F. Supp. 2d 675, 679 (S.D.N.Y. 2002)

(“The court is persua ded that t h e fo ru m selec tion clause at issue here essentially opera tes as a

prospec tive waiver of Gottesman’s rig ht to pursue statutory reme d i es under COGSA. I f the case

wer e decide d in L ondon instead of this district, there is a strong likelihood that Eng lish courts would

g ive forc e to an exculpatory clause in the bill of lading

, insulating parties other than the shipowner

from liability

, in violation of COGSA.”); Nippon Fire & Ma rine I ns. Co. v. M/V Spring Wave, 92

F. Supp. 2d 574, 575 (E.D. L a. 2000) (“[T]he Court finds that the [foreig n forum selec tion] clause

is unrea sonable under the circ umstances by violating the strong public polic y aga inst limit ing

liability in contra vention of Section 1303(8) of COGSA.”). But cf. Fire man’s Fund I ns. Co. v. Cho

Yang Shipping Co., 131 F.3d 1336, 1340 (9th Cir. 1997) (compe l l i n g arbitra tion afte r finding

“uncontr overte d evidenc e that Kore an law will be at least as favor able [t o plaintiff] as COGSA”).

21S e a m a n ’ s W a g e A c t c l a i m

, o n e d e r i v e d s o l e l y f r o m a U

. S

. s t a t u t o r y s c h e m e

. I f

,

a p p l y i n g P a n a m a n i a n l a w

, T h o m a s r e c e i v e s n o a w a r d i n t h e a r b i t r a l f o r u m

— a

d i s t i n c t p o s s i b i l i t y g i v e n t h e U

. S

. b a s e d n a t u r e o f h i s c l a i m

— h e w i l l h a v e n o t h i n g

t o e n f o r c e i n U

. S

. c o u r t s

, w h i c h w i l l b e d e p r i v e d o f a n y l a t e r o p p o r t u n i t y t o r e v i e w

.

D e s p i t e o u r g e n e r a l d e f e r e n c e t o a r b i t r a t i o n a g r e e m e n t s i n a n e r a o f

i n t e r n a t i o n a l t r a d e e x p a n s i o n

, s e e i d

. a t 6 3 8

– 3 9

, t h e p o s s i b i l i t y o f s u c h a r e s u l t

w o u l d c o u n s e l a g a i n s t b e i n g d e f e r e n t i a l i n t h i s c i r c u m s t a n c e

, a s i t i s e x a c t l y t h e

s o r t t h a t t h e S u p r e m e C o u r t h a s d e s c r i b e d a s a “ p r o s p e c t i v e w a i v e r o f p a r t i e s ’

r i g h t s t o p u r s u e s t a t u t o r y r e m e d i e s ” w i t h o u t t h e a s s u r a n c e o f a “ s u b s e q u e n t

o p p o r t u n i t y f

o r r e v i e w

. ” V i m a r

, 5 1 5 U

. S

. a t 5 4 0

. T h e C o u r t e x p l i c i t l y s t a t e d t h a t

i n s u c h s i t u a t i o n s i t “ w o u l d h a v e l i t t l e h e s i t a t i o n i n c o n d e m n i n g t h e a g r e e m e n t a s

a g a i n s t p u b l i c p o l i c y

. ” I d

. F o r t h e r e a s o n s e x p r e s s e d

, w e f i n d t h e A r b i t r a t i o n

C l a u s e r e q u i r i n g a r b i t r a t i o n i n t h e P h i l i p p i n e s u n d e r P a n a m a n i a n l a w n u l l a n d v o i d

a s i t r e l a t e s t o T h o m a s ’ s S e a m a n ’ s W a g e A c t C l a i m

. 1 7

Thomas also arg ued that th e S ea m an ’s Wage Act was cate g orica lly not subject to the 1 7

Convention but rathe r was remove d from its rea ch pursuant to U.S. Ba nk v. Arg uelles, 400 U.S. 351

(1971) (holding that the L abor Manag ement Relations Act (L MRA) did not abrog ate the Seaman’ s

Wage Act remed y ). I n L o b o v. Celebrity Cruises, I nc.,we conclude d otherwise and held that the

Convention Act superse ded the Seaman’ s Wage Act. 488 F.3d 891 (11th Cir. 2007) (noting that

Arg uelles wa s decide d just after the Convention Act was pa ssed such that the Court likely did not

have the opportunity

to consider the Conve ntion, and finding that, unlike in the l eg islative history

of the L MRA, it was clea r that Congr ess did not intend to allow for broad industry -spec ific

exceptions to the Convention Act).

Ou r opinion has no bear ing on the holding of L obo. We note that in L obo the arbitra tion

ag ree ment stated the arbitra l forum would be either Miami, FL or the seaf are r’s country of

22I V

. C o n c l u s i o n

W e r e v e r s e t h e d i s t r i c t c o u r t ’ s d e c i s i o n t o c o m p e l a r b i t r a t i o n a s t o a l l o f

T h o m a s ’ s c l a i m s

, a s d i s c u s s e d a b o v e

, a n d r e m a n d f o r f u r t h e r p r o c e e d i n g s i n

a c c o r d a n c e h e r e w i t h

.

R E V E R S E D a n d R E M A N D E D

citizenship and did not specify that only fore ign law would apply

. More to the point, our de cision

today does not find that the Seaman’ s Wage Act superc edes the Convention Act or bars rec og nition

of the Arbitration Claus e. R at h er

, the narr ow holding is that the Convention does g overn but,

apply ing its aff

irmative defe nses provision, we find that the particula r arbitra tion clause in question

is null and void as a matter of public policy

.

23