John Gomez v. Celebrity Cruises, Inc.

704 F.3d 882, 2013 WL 57720, 2013 A.M.C. 740
Court of Appeals for the Eleventh Circuit·Decided January 7, 2013·No. 10-13623, 10-10406·Published·Cited by 83 cases

Opinion

TJOFLAT, Circuit Judge:

I.

A.

In Lobo v. Celebrity Cruises, Inc. (“Lobo I”), 488 F.3d 891 (11th Cir.2007), we held that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“Convention”) and its implementing legislation, 9 U.S.C. §§ 202-208, super-ceded the Seaman’s Wage Act, 46 U.S.C. § 10313, and required the District Court to grant a motion to compel arbitration of *886 a foreign seaman’s claim for wages allegedly due under a collective bargaining agreement. We accordingly affirmed the District Court’s order compelling the arbitration of a cabin steward’s claim for wages—in the form of tips passengers paid for his services—that his employer, a cruise line, allegedly withheld. 1

The cabin steward was Inacio Lobo. After his case was submitted to arbitration, Lobo became dissatisfied with the representation his union, Federazione Italianan Transporti (“FIT”), was providing him; so he returned to the District Court—this time with a class action 2 against the union and the cruise line under section 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, 3 asserting both hybrid and non-hybrid claims for the tips he and other cabin stewards had not received. 4 Lobo v. Celebrity Cruises, Inc. (“Lobo II”), 667 F.Supp.2d 1324 (S.D.Fla.2009). His hybrid claim against his employer, Celebrity Cruises, Inc. (“Celebrity”), was that it breached the wage provisions of the collective bargaining agreement (“CBA”) it had with FIT. His hybrid claim against FIT was that it breached the duty of fair representation it owed him under § 9(a) of the National Labor Relations Act (“NLRA”), 29 U.S.C. § 159. 5 Lobo’s non-hybrid claim was lodged against FIT; it replicated the § 9(a) allegations of the hybrid claim.

Lobo and the members of the putative class were citizens and residents of India. FIT is an Italian union. Celebrity is a Liberian corporation; its cruise ships are registered in the Bahamas. The defendants, citing Benz v. Compania Naviera Hidalgo, S.A., 353 U.S. 138, 77 S.Ct. 699, 1 L.Ed.2d 709 (1957) and McCulloch v. Sociedad Nacional de Marineros de Honduras, 372 U.S. 10, 83 S.Ct. 671, 9 L.Ed.2d 547 (1963), separately moved the District Court to dismiss Lobo’s complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim for relief. FIT also moved the court to dismiss it from the case under Federal Rule of Civil Procedure 12(b)(5) for insufficient service of process. In an order entered on September 10, 2009, the court granted FIT’s Rule 12(b)(5) motion and dismissed the complaint against it without prejudice. It agreed with both defendants that Benz foreclosed Lobo’s hybrid claims; as Benz explicitly held, the LMRA does not apply to labor disputes between foreign crew *887 members and a foreign ship owner. 353 U.S. at 143, 77 S.Ct. at 702. The court therefore dismissed the complaint as to Celebrity with prejudice.

B.

After perfecting service of process on FIT, Lobo filed an amended complaint against FIT alone. He reasserted a non-hybrid breach of fair representation claim under § 9(a) as well as under federal common law. He also added a state law claim for breach of a duty of “good faith and fair dealing.” 6 FIT moved the District Court to dismiss the amended complaint under Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction. On July 7, 2010, the court granted the motion. In its view, since the non-hybrid claim could not be brought under the LMRA and the NLRA, the court lacked the subject matter jurisdiction needed to entertain the amended complaint. On July 8, 2010, the District Court, in conformance with its orders of September 10, 2009, and July 7, 2010, entered final judgment in favor of Celebrity and FIT.

C.

While Lobo II was pending in the District Court, John Gomez and nine of the cabin stewards named in that case brought a class action against Celebrity under the Seaman’s Wage Act, seeking damages in the amount of the tips Celebrity had allegedly withheld. Gomez v. Celebrity Cruises, Inc., No. 09-22991 (S.D.Fla.2009). 7 Rather than invoking the arbitration provision of the CBA, Celebrity moved the court to dismiss the case under the doctrine of res judicata. Celebrity argued that the plaintiffs should have, but did not, assert their Seaman’s Wage Act claim in Lobo II. The District Court agreed and on December 23, 2009, dismissed the case with prejudice. 8

Gomez and the nine other cabin stewards who had joined him in Lobo II and Gomez (the “Stewards”) appealed the District Court’s judgments in both cases, Appeal Nos. 10-13623 and 10-10406, respectively. We address the appeals separately, beginning with Lobo II.

II.

The hybrid claims in Lobo II were dismissed under Rule 12(b)(6) for failure to state a claim. We review Rule 12(b)(6) dismissals de novo, accepting the allegations in the complaint as true and construing them in the light most favorable to the plaintiff. Hill v. White, 321 F.3d 1334, 1335 (11th Cir.2003).

The District Court dismissed the Stewards’ hybrid claims against Celebrity and FIT after determining that the Supreme Court’s decisions in Benz and McCulloch foreclosed the application of the LMRA and the NLRA to wage disputes between foreign ships and foreign seamen. 9 We agree.

*888 It is well-settled that these statutes do not apply to wholly-foreign disputes. In Benz,

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John Gomez v. Celebrity Cruises, Inc., 704 F.3d 882, 2013 WL 57720, 2013 A.M.C. 740 (11th Cir. 2013).

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