Castillo v. Spiliada Maritime Corp.

740 F. Supp. 409, 1991 A.M.C. 881, 1990 U.S. Dist. LEXIS 7826, 1990 WL 86658
District Court, E.D. Louisiana·Decided June 25, 1990·No. Civ. A. No. 89-3769·Published·Cited by 3 cases

Opinion

BEER, District Judge.

Plaintiffs are five Filipino seamen who were discharged from Defendant Spiliada Maritime Corporation’s (“Spiliada”) vessel, M/V SPILIADA, in New Orleans on July 7, 1989. Plaintiffs assert wage and penalty wage claims pursuant to U.S. Penalty Wage Statute, 46 U.S.C. 10313.1 Spiliada filed a Motion for Summary Judgment, or Alternatively, Motion to Stay Proceedings, contending that plaintiffs entered a binding and final settlement prior to the date this suit was filed. Plaintiffs asserted their own Motion for Summary Judgment, contending that the settlement they entered prior to filing this suit is invalid since they were allegedly coerced into entering it.

Plaintiffs also contend that this court’s jurisdiction over their wage claims is mandatory. Subject matter jurisdiction over seaman wage claims is only mandatory, however, if those claims are made in good faith. Abraham v. Universal Glow, Inc., 681 F.2d 451, 453 (5th Cir.1982). Thus, this court reserved ruling on the cross motions for summary judgment, and in order to resolve whether it had jurisdiction in this matter, scheduled an evidentiary hearing on “the specific and single issue of fact [of] whether plaintiffs acted in good faith when they entered a settlement, renounced it, and then filed this lawsuit.” (Minute Entry, February 14, 1990). That hearing was held on May 2-3, 1990. This court now makes the following Findings of Fact and Conclusions of Law.

FINDINGS OF FACT

1. Plaintiffs, Lauro Malinas, Rey Castillo, Carlos Abesamis, Jerry Ramos, and Emetrio Noble, are all citizens and residents of [410] the Philippines who served as seamen aboard M/Y SPILIADA during 1988 and 1989. All five seamen were discharged from M/V SPILIADA on July 7, 1989 in New Orleans, and repatriated to the Philippines at Spiliada’s expense.

2. M/V SPILIADA, a Liberian flag vessel, was owned at all pertinent times by defendant Spiliada, a Liberian corporation. The M/V SPILIADA was managed by defendant’s agent, Buenamar Compañía Naviera (“Buenamar"), a Greek company.

3. Plaintiffs obtained their employment aboard the M/V SPILIADA through a “manning agency” in the Philippines, Philgrecian Maritime Services (“Philgrecian”). Whereupon plaintiffs boarded M/V SPILIADA with a large sealed envelope from Philgrecian containing employment contracts and notarized undertakings to be hand delivered to the vessel’s master. (Plaintiffs’ Exhibit # 5). According to those contracts and undertakings, the base monthly wage of plaintiffs Abesamis, Castillo, Ramos and Noble was 6,006 Philippine pesos ($276), and the monthly wage of plaintiff Malinas was 4,010 Philippine pesos ($180). (Id.) In the column of the ship’s articles captioned “Base Wages per Month”, which plaintiffs signed, the notation “BIL AGR” appeared for each plaintiff. (Plaintiffs’ Exhibit # 3). This notation referred to a Bilateral Agreement entered between the Union of Greek Shipowners and the Philippine Officers and Seaman’s Union. (Plaintiffs’ Exhibit # 4). In 1988, Buenamar had instructed Philgrecian to hire seamen pursuant to the terms of this Bilateral Agreement. The base monthly wages prescribed in that Bilateral Agreement for seamen in plaintiffs’ various positions correspond to the wage rates specified in the contracts and undertakings that plaintiffs brought with them via the sealed envelope when they boarded the vessel. (Id. at p. 13; Plaintiffs’ Exhibit # 5).

4. Unknown to Buenamar, Philgrecian submitted versions of each plaintiffs’ employment contracts for approval with the Philippine Overseas Employment Administration (“POEA”) that contained higher wage rates than the contracts that plaintiffs carried with them aboard the vessel. (Plaintiffs’ Exhibit # l).2 The contracts submitted to the POEA called for plaintiffs Abesamis, Castillo, Ramos and Noble to be paid 58,000 drachmas per month ($429), and for plaintiff Malinas to receive 55,000 drachmas per month ($407),3 along with higher rates of overtime and leave pay than those provided in the contracts plaintiffs carried aboard the vessel (and provided for in the Bilateral Agreement). (Id.) Thus, the base monthly wages specified in the POEA approved contracts was $153 higher than the base wage specified in the contracts that plaintiffs took aboard the vessel for four plaintiffs (Abesamis, Castillo, Ramos, and Noble), and was $227 higher for the other plaintiff, Malinas.

Philgrecian also apparently altered the employment contracts that plaintiffs brought aboard the vessel to reflect the wage rates prescribed in the Bilateral Agreement. (Plaintiffs’ Exhibit # 5). Buenamar at no time authorized Philgrecian to alter these employment contracts, and no one at Buenamar or aboard M/V SPILIA-DA altered the contracts. Rather, Buenamar had been advised that each of the plaintiffs had agreed to work for the wage rates contained in the Bilateral Agreement, as reflected in the copies of the contracts carried aboard the vessel and delivered to the master via sealed envelope by plaintiffs. (Id.)4

[411]*4115. Plaintiffs complained that they were being underpaid while aboard M/V SPILIADA, eventually contacting John Sansone of the International Transport Workers Federation (“ITF”), who presented their complaints to the vessel’s master, Captain Marmaras, in New Orleans on July 6, 1989.5 Sansone contacted officials in the Philippines, and learned of the wage rate discrepancy between plaintiffs’ employment contracts that were approved and on file with the POEA, and those which plaintiffs brought aboard the M/V SPILIADA, which had been altered. When confronted with the discrepancy, Captain Marmaras indicated that plaintiffs were correctly being paid in accordance with the Bilateral Agreement, and the employment contracts aboard the vessel.

6. After further discussions failed to resolve the issue, plaintiffs were discharged on July 7, 1990, and promptly repatriated at defendant’s expense to the Philippines. Under “Cause of Discharge” in plaintiffs’ seaman’s books, Captain Marmaras entered the caption “DUE ITF”. Plaintiffs were paid the wages due to them at the time of discharge at the rates specified in the Bilateral Agreement and the employment contracts aboard the vessel.

7. Just prior to being repatriated, plaintiffs apparently signed an agreement authorizing Richard J. Dodson, an American attorney, to represent them.

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Castillo v. Spiliada Maritime Corp., 740 F. Supp. 409, 1991 A.M.C. 881, 1990 U.S. Dist. LEXIS 7826, 1990 WL 86658 (E.D. La. 1990).

740 F. Supp. 409 (Castillo v. Spiliada Maritime Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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