Carmela Deroy v. Carnival Corporation

963 F.3d 1302
Court of Appeals for the Eleventh Circuit·Decided June 30, 2020·No. 18-12619·Published·Cited by 73 cases

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 18-12619

D.C. Docket No. 1:18-cv-20653-UU CARMELA DEROY, Plaintiff - Appellee,

versus CARNIVAL CORPORATION, Defendant - Appellant.

Appeal from the United States District Court for the Southern District of Florida

(June 30, 2020)

Before ROSENBAUM, GRANT, and HULL, Circuit Judges. ROSENBAUM, Circuit Judge:

Fans of movies set in medieval times know that the narrow slits in otherwise seemingly impenetrable castle walls allowed castle defenders to launch arrows at

approaching castle attackers.1 This architectural feature was designed to protect the archer while still allowing the archer to defend the castle.2 It is known as a “loophole.”3 But arrows were not the only thing that could fit through castle-wall loopholes. Sometimes children and small adults could as well.4 And they could use them to escape the thick castle walls. 5 It’s not clear that the figurative usage of the term “loophole” derives from a reference to the architectural feature. But the parallels between the two usages are nonetheless obvious. Figuratively, “loophole” has come to mean “[a]n outlet or means of escape[;] [o]ften applied to an ambiguity or omission in a statute, etc., which affords opportunity for evading its intention.” Loop-hole, Oxford English Dictionary, https://www.oed.com/view/Entry/110180 (last visited June 29, 2020).

Here, Plaintiff-Appellee Carmela DeRoy attempts to take advantage of a supposed loophole in the forum-selection clause of a contract she entered into with

1 Loophole, Grammarist, https://grammarist.com/interesting-words/loophole/ (last visited June 29, 2020); Loophole, Online Etymology Dictionary, https://www.etymonline.com/word/ loophole (last visited June 29, 2020).

2 Loophole, Grammarist, supra note 1.

3 What’s the origin of “loophole”?, The Straight Dope (Feb. 6, 2003), https://www.

straightdope.com/columns/read/2071/whats-the-origin-of-loophole/; see also Loophole, Dictionary by Merriam-Webster, https://www.merriam-webster.com/dictionary/loophole (last visited June 29, 2020 ) (defining “loophole” secondarily as, among other things, “a small opening through which small arms may be fired” and noting this definition as the “first known use” of the term, in 1591); Loop-hole, Oxford English Dictionary, https://www.oed.com/view/Entry/110180 (last visited June 29, 2020).

4 The Straight Dope, supra note 3.

5 See id.

Defendant-Appellant Carnival Corporation when she bought a ticket for a Carnival cruise. The forum-selection clause requires all litigation to proceed in federal court if federal jurisdiction lies for the claim. DeRoy, who injured her foot on a rug while onboard the Carnival Valor, simultaneously sued Carnival in both state and federal court. In her federal suit—this case—she attempted to plead her case to avoid invoking federal jurisdiction, even though federal jurisdiction could exist over a claim seeking damages for the injuries DeRoy allegedly suffered onboard the Valor. Then DeRoy sought for the district court to dismiss this federal case for lack of jurisdiction, so she could permissibly proceed with the state suit under the forum- selection clause.

It was a creative effort. But DeRoy’s proposed loophole does not exist, so she cannot escape the forum-selection clause’s ironclad consequences. Under the forum-selection clause’s plain language, when jurisdiction for a claim could lie in federal district court, federal court is the only option for a plaintiff. Here, DeRoy’s claim for negligence at sea falls well within the walls of the federal court’s admiralty jurisdiction. Even without explicitly invoking admiralty jurisdiction—and in fact intentionally attempting to plead around it—DeRoy’s complaint is subject to Federal Rule of Civil Procedure 9(h)’s provision rendering her claim an admiralty or maritime claim. Her claim is therefore subject to the forum-selection clause’s federal-court-forum fortress.

For these reasons, the district court erred in dismissing the action for lack of subject-matter jurisdiction. We therefore reverse and remand for further proceedings.

I. FACTUAL BACKGROUND

For purposes of reviewing a district court’s dismissal for lack of subject-

matter jurisdiction, we take the facts as the plaintiff has alleged them, unless the district court has made a contrary finding. Giardiello v. Balboa Ins. Co., 837 F.2d 1566, 1568 n.1 (11th Cir. 1988).

Here, DeRoy asserted that in October 2016, she was a cruise passenger on the Carnival Valor ship. During her cruise, DeRoy tripped on a dip in the carpeting in one of the Valor’s inside hallways. As a result of her fall, DeRoy broke her right foot and suffered other damages.

On February 20, 2018, DeRoy simultaneously filed two complaints against Carnival Corporation: one in the United States District Court for the Southern District of Florida and one in the Eleventh Judicial Circuit Court in and for Miami- Dade County, Florida. 6 Each complaint contains a single negligence claim against Carnival.

DeRoy’s ticket contract with Carnival contained a forum-selection clause that

6 The record reflects that the state-court case is essentially on hold pending the outcome of this appeal.

required her to bring any claim in the United States District Court for the Southern District of Florida if it was jurisdictionally possible to do so:

[I]t is agreed by and between the Guest and Carnival that all disputes and matters whatsoever arising under, in connection with or incident to this Contract or the Guest’s cruise, including travel to and from the vessel, shall be litigated, if at all, before the United States District Court for the Southern District of Florida in Miami, or as to those lawsuits to which the Federal Courts of the United States lack subject matter jurisdiction, before a court located in Miami-Dade County, Florida, U.S.A. to the exclusion of the Courts of any other county, state or country.

In accordance with this provision, as we have noted, DeRoy filed the suit pending

here.

Yet DeRoy devoted the majority of her complaint to attempting to establish that the district court lacked subject-matter jurisdiction—whether diversity, federal- question, or admiralty jurisdiction—to adjudicate her claims. In furtherance of this tactic, DeRoy noted that both she and Carnival were citizens of Florida, so no diversity jurisdiction existed. She next pointed out that since she brought a negligence claim only, federal-question jurisdiction was lacking. And then she asserted that she had elected to bring her in personam negligence action at law—not in admiralty. So, DeRoy concluded, admiralty jurisdiction did not exist, since admiralty jurisdiction does not extend to in personam claims brought at law.

For these reasons, DeRoy contended, the federal district court lacked subject-

matter jurisdiction and was required to dismiss her suit. Indeed, DeRoy invited the

district court to “dismiss this case sua sponte because it lacks subject matter jurisdiction over the claims in this lawsuit.” And the primary relief she sought in her negligence claim consisted of “[d]ismissal of this case for lack of subject matter jurisdiction,” with damages as only an alternative request. 7 Carnival responded with a motion to dismiss, or, in the alternative, for a more definite statement. In its motion, Carnival asserted that DeRoy undoubtedly could have invoked admiralty jurisdiction, since 28 U.S.C. § 1333 provides that “[t]he district courts have original jurisdiction, exclusive of the courts of the States,” over “[a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are entitled.” 8 And it noted that, to the extent the saving-to-suitors clause of § 1333 guaranteed DeRoy the right to a jury trial under the Florida constitution, Carnival would not object to a jury trial as DeRoy requested

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Carmela Deroy v. Carnival Corporation, 963 F.3d 1302 (11th Cir. 2020).

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