Cabahug v. Text Shipping Co., Ltd.

760 So. 2d 1243, 2000 WL 641098
CourtLouisiana Court of Appeal
DecidedMay 12, 2000
Docket98 CA 0786
StatusPublished
Cited by5 cases

This text of 760 So. 2d 1243 (Cabahug v. Text Shipping Co., Ltd.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cabahug v. Text Shipping Co., Ltd., 760 So. 2d 1243, 2000 WL 641098 (La. Ct. App. 2000).

Opinion

760 So.2d 1243 (2000)

Tomas Reyes CABAHUG, Jr.
v.
TEXT SHIPPING COMPANY, LTD.; Apollo Shipping Ltd.; and United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd.

No. 98 CA 0786.

Court of Appeal of Louisiana, First Circuit.

May 12, 2000.
Rehearing Denied July 7, 2000.

*1246 Richard J. Dodson, David C. Vidrine, Baton Rouge, Gordon R. Crawford, Gonzales, for Plaintiff/Appellee, Tomas Cabahug, Jr.

Scott A. Soule, Robert B. Fisher, New Orleans, for Defendants/Appellants, Text Shipping Co. Ltd. and the United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd.

Before: LeBLANC, PETTIGREW, JJ., and KLINE,[1] J. Pro Tem.

KLINE, J. Pro Tem.

This is an appeal of a judgment awarding $1,213,161.47 in damages to a Filipino seaman in a maritime personal injury case.

BACKGROUND AND PROCEDURAL HISTORY

On December 8, 1995, Tomas Reyes Cabahug Jr. (Cabahug), a Filipino seaman, was seriously injured when he fell into the Mississippi River from an accommodation ladder attached to the M/V NIKI. At the time of Cabahug's fall, the M/V NIKI was undergoing loading operations in Darrow, Louisiana. Cabahug instituted a maritime personal injury action under the Jones Act, 46 U.S.C. § 688, and general maritime law, against Text Shipping Company Ltd. (Text), a Cyprus corporation and owner of the M/V NIKI; Apollo Shipping Ltd. (Apollo), a Malta corporation, which agreed to provide crews to Text; and United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Ltd. (United *1247 Kingdom), the maritime insurer of Text. The suit was filed in the Twenty-Third Judicial District Court of Louisiana under the "Savings to Suitors" clause, 28 U.S.C. § 1333. Cabahug alleged he was injured due to the negligence of the defendants and the unseaworthiness of the vessel. In addition to contesting their liability, defendants asserted Cabahug's claim should be dismissed because his employment contract contained an exclusive forum selection clause, which required his claim be heard in the Philippines.

The defendants filed numerous exceptions seeking dismissal of Cabahug's lawsuit. The exceptions included declinatory exceptions raising the objections of insufficiency of citation, insufficiency of service of process, improper venue, lack of jurisdiction over the person of the defendants, lack of subject matter jurisdiction, prematurity, want of amicable demand, and peremptory exceptions raising the objections of no right and no cause of action.

The defendants sought supervisory writs from this court for review of the denial of their exceptions. This court stayed the litigation, ordered the record lodged, and docketed the matter for oral argument. However, before arguments could be heard, the Louisiana Supreme Court vacated the stay order, and remanded the case to the trial court. The supreme court found no error in the trial court's denial of the exceptions and stated that defendants had adequate remedy on appeal. Cabahug v. Text Shipping Company, Ltd., 96-2580, p. 1 (La.11/1/96), 681 So.2d 345, 346.

Prior to trial, the defendants moved for summary judgment on the basis that the exclusive forum selection clause in Cabahug's employment contract required this action be heard in the Philippines. The motion for summary judgment was denied. A similar motion in limine was also denied.

After trial on the merits, the trial court determined Cabahug's employment contract was not the Philippine Overseas Employment Agency (POEA) contract (Defense Exhibit 51), but that the shipping articles (Defense Exhibit 12) served as Cabahug's contract of employment. The trial court found defendants to be 100% at fault in causing Cabahug's accident, and awarded Cabahug $1,213,161.47 in damages. Defendants appealed, contending the trial court erred in failing to enforce the exclusive forum selection clause of Cabahug's contract of employment, applying the improper legal standard of care, casting Text liable for any percentage of fault, finding Text negligent, awarding excessive damages, and awarding maintenance and cure and "found."

The first issue we encountered was whether a forum selection clause contained in Cabahug's employment contract should be enforced. Because of the complete absence of evidence in the trial record regarding whether Cabahug's claim is barred from being presented in a Philippine forum, this matter was remanded back to the trial court for the taking of additional evidence on that issue. See Cabahug v. Text Shipping Company, Ltd., 98-0786 (La.App. 1st Cir. 12/28/98), (not designated for publication). The trial court conducted a hearing on that issue and the record has been supplemented with that evidence.

Enforcement of the Forum Selection Clause

The seminal case on interpretation of forum selection clauses is MIS Bremen v. Zapata Off-Shore Company, 407 U.S. 1, 15, 92 S.Ct. 1907, 1916, 32 L.Ed.2d 513 (1972), which held that a forum selection clause should control absent a strong showing that it should be set aside. By placing the burden of proof on the party contesting enforcement, the Supreme Court effectively made the forum selection clauses prima facie valid. See Bremen, 407 U.S. at 15-18, 92 S.Ct. at 1916-17.

Forum selection clauses can be invalidated if enforcement is shown to be unreasonable and unjust. The Bremen court referred to several examples of what would qualify as situations deemed unreasonable under the circumstances. Enforcement *1248 is considered unreasonable if trial in the contractual forum would be so gravely difficult and inconvenient that a party will for all practical purposes be deprived of his day in court. Bremen, 407 U.S. at 12-13, 16-17, 92 S.Ct. at 1914-17.

Prior to the presentation of testimony, the defendants offered a stipulation that they would agree to appear and defend any claims for damages whether in contract or tort, brought by the plaintiff in the proper tribunal in the Philippines. The defendants agreed that this would include any damage claim made by Cabahug arising from his accident on board the M/V NIKI.[2] The defendants also agreed to waive any objections regarding prescription, statutes of limitation, venue, jurisdiction, or other procedural impediment. According to the stipulation the defendants agreed that the district court deposition testimony of witnesses and related exhibits would be made available to the proper Philippine tribunal with parties reserving any right to call the same or additional witnesses and offer additional exhibits. Finally, the defendants agreed to pay any judgment or award rendered by the proper Philippine tribunal or settlement.

Cabahug offered testimony from Emilio A. Gancayo, a former associate justice of the Philippine Supreme Court, who was accepted as an expert in Philippine law and procedure. According to Justice Gancayo, the prescriptive periods in the Philippines are three years from the date of incident to institute an action arising out of an employer-employee relationship and four years from the date of injury to file a tort claim seeking damages in a Philippine district court.

Considering that Cabahug's injury occurred on December 8, 1995, his claims are clearly prescribed.

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