Gonsalvez v. Celebrity Cruises, Inc.

935 F. Supp. 2d 1325, 2013 WL 1296382, 2013 U.S. Dist. LEXIS 50666
CourtDistrict Court, S.D. Florida
DecidedMarch 13, 2013
DocketCase No. 12-22287-CV
StatusPublished
Cited by2 cases

This text of 935 F. Supp. 2d 1325 (Gonsalvez v. Celebrity Cruises, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gonsalvez v. Celebrity Cruises, Inc., 935 F. Supp. 2d 1325, 2013 WL 1296382, 2013 U.S. Dist. LEXIS 50666 (S.D. Fla. 2013).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS AND DENYING DEFENDANT’S MOTION FOR SANCTIONS (D.E. 10) .

JOAN A. LENARD, District Judge.

THIS CAUSE is before the Court on Defendant Celebrity Cruises, Inc.’s Motion to Dismiss (D.E. 9, 7/11/12) and Motion for Sanctions (D.E-. 10, 7/11/12). Plaintiffs filed Responses to each Motion (D.E. 13, D.E. 8/9/12; D.E. 14, 8/9/12) and Defendant filed Replies (D.E. 15, 8/14/12; D.E. 16, 8/14/12). Having reviewed the referenced filings, the related pleadings, and the record, the Court finds as follows.

I. Background

Plaintiffs in this case are twenty citizens of India who worked as stateroom attendants on Celebrity cruise ships. (See Complaint, D.E. 1 ¶ 3; Response to Motion to Dismiss, D.E. 13 at 3.)

The terms of Plaintiffs’ employment were governed by a collective bargaining agreement, which contained a mandatory grievance and arbitration process. (Id: ¶¶ 12, 13, 18-19.) If an employee believed that the collective bargaining agreement was violated or that he was being treated unfairly, the agreement required him to file a grievance within thirty days of departure from his vessel. (Id. ¶ 18.) Any unresolved grievances would then be referred to arbitration, which would take place either in the employee’s country of citizenship or Miami, Florida. (Id. ¶ 19.)

In September 2009, Plaintiffs submitted a demand for arbitration to Celebrity. (Id. ¶ 4.) Plaintiffs alleged that between August 2002 and January 2005, Celebrity violated the collective bargaining agreement by requiring them to share gratuities with assistant cruise staff-members. (Id. ¶¶ 15-17.) '

Celebrity moved to dismiss Plaintiffs’ arbitration claims, arguing that Plaintiffs failed to raise any timely grievances before demanding arbitration. (Id. ¶ 7.) In response, Plaintiffs submitted sworn declarations that they were unaware of their labor union membership, of the collective bargaining agreement governing their employment, and of the “hypertechnical requirements of the grievance procedure.” (Id. ¶42; Arbitrator’s Decision, D.E. 1-3 at 13.)

An arbitration hearing was held in Miami on January 7, 2011. (Id. ¶ 8.)

On January 22, 2011, the arbitrator granted Defendant’s motion to dismiss. (Id. ¶ 9; Arbitrator’s Decision, D.E. 1-3 at 20.) The arbitrator concluded that Plaintiffs’ claims were non-arbitrable for failure to file predicate grievances in accordance with the collective bargaining agreement. (See Complaint, D.E. 1 ¶ 9.) The arbitrator acknowledged and analyzed Plaintiffs’ sworn declarations but did not find them credible. (Arbitrator’s Decision, D.E. 1-3 at 13r17.)

On June 19, 2012, Plaintiffs filed this action “seeking to vacate [the] arbitration [1328]*1328award pursuant [to] the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.” {Id. ¶ 1.) Plaintiffs séek to vacate the arbitrator’s decision as contrary to public policy. {Id. ¶¶ 29-^45.) Plaintiffs claim that enforcement of the decision disenfranchises seafarers, that enforcing the thirty-day grievance period contravenes general maritime law and U.S. Bulk Camers, Inc. v. Arguelles, 400 U.S. 351, 91 S.Ct. 409, 27 L.Ed.2d 456 (1971), and that the arbitrator improperly ignored their sworn declarations in rendering his decision. {See id. ¶¶ 30-45.) Plaintiffs also stress that in a related wage dispute, see Lobo v. Celebrity Cruises, Inc., 488 F.3d 891 (11th Cir.2007), Celebrity never invoked the grievance procedure as necessary condition precedent to arbitration. (Complaint, D.E. 1 ¶ 20-22.) Plaintiffs argue that enforcing the grievance procedure in this case thus constitutes a “misuse of the judicial process, gamesmanship with our Court system — and manifest injustice severely prejudicing the Plaintiffs[’] - due process rights.”- {Id. ¶ 27.)

II. Motions

Celebrity moves to dismiss Plaintiffs’ action pursuant to Federal Rule of Civil Procedure 12(b)(6). {See Motion to Dismiss, D.E. at 1.) Celebrity argues first that Plaintiffs’ action is time-barred. {Id. at 3.) Celebrity stresses that this is ah action to vacate an arbitration award and was not brought in response to a motion to enforce. {Id. at 2-3.) Celebrity argues that because the Convention is silent on when motions to vacate arbitration awards must be filed, the Federal Arbitration Act’s three-month statute of limitations applies. {Id. at 3.) This action was filed more than three months after the arbitration decision was rendered, so Celebrity argues that the action is untimely. {Id.) Celebrity further argues that the grounds asserted for vacating the arbitration decision are without merit and have been rejected by this Court before. {Id. at 4-9.) Celebrity also moves for sanctions against'Plaintiffs for mounting a time-barred and otherwise baseless attack on the arbitration award. {See Motion for Sanctions, D.E. 10 at 1-3.)

Plaintiffs respond that their claim is not time-barred. {See Response to Motion to Dismiss, D.E. 13 at 11.) Plaintiffs argue that because they are citizens of India, this action is governed exclusively by the Convention and not Chapter 1 of the Federal Arbitration Act. {Id. at 12.) The Convention sets forth a three-year statute of limitations for actions seeking enforcement of arbitration awards, and ‘Plaintiffs argue that that limitations period applies 'in this case. {Id.) Plaintiffs further maintain that the arbitrator’s decision enforcing the thirty-day grievance requirement is contrary to public policy. ' {See id. at Í6.) Plaintiffs also argue that their action does not warrant sanctions, because they have a right to challenge the arbitrator’s decision, their case has legal merit, and they may advance reasonable arguments for the extension, modification, or reversal of existing law. {See Response to Motion for Sanctions, D.E. 14 at 3-10.)

III. Applicable Standards

Federal Rule of Civil Procedure 12(b)(6) allows a complaint to be dismissed, for failure to state a claim upon which relief can be granted. See Fed.R.Civ.P. 12(b)(6). In order to survive a motion to dismiss, the'complaint must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Am. Dental Ass’n v. Cigna Corp., 605 F.3d 1283, 1289 (11th Cir.2010) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167-L.Ed.2d 929 (2007)). A Rule 12(b)(6) dismissal on statute of limitations grounds is appropriate if it is apparent from the face of the [1329]*1329complaint that the claim is time-barred. La Grasta v. First Union Sec., Inc.,

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Bluebook (online)
935 F. Supp. 2d 1325, 2013 WL 1296382, 2013 U.S. Dist. LEXIS 50666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonsalvez-v-celebrity-cruises-inc-flsd-2013.