Johnson v. NCL (Bahamas) Ltd.

163 F. Supp. 3d 338, 2016 U.S. Dist. LEXIS 20636, 2016 WL 675705
CourtDistrict Court, E.D. Louisiana
DecidedFebruary 19, 2016
DocketCIVIL ACTION CASE NO. 15-4400
StatusPublished
Cited by5 cases

This text of 163 F. Supp. 3d 338 (Johnson v. NCL (Bahamas) Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. NCL (Bahamas) Ltd., 163 F. Supp. 3d 338, 2016 U.S. Dist. LEXIS 20636, 2016 WL 675705 (E.D. La. 2016).

Opinion

ORDER

NANNETTE JOLIVETTE BROWN, UNITED STATES DISTRICT JUDGE

Before the Court are Defendant NCL (Bahamas) Ltd.’s (“NCL”) “Motion to Compel Arbitration and Stay Proceedings”1 and Plaintiff Kelly David Johnson’s (“Johnson”) “Motion to Remand.”2 Having considered the motions, the memoranda in support and in opposition, the record, and the applicable law, the Court will grant Defendant’s motion to compel arbitration and deny Plaintiffs motion to remand.

[340]*340I. Background

On June 25, 2015, Plaintiff, an alleged seaman aboard a vessel owned by NCL, filed suit in Civil District Court for Orleans Parish seeking damages pursuant to the Jones Act, the Federal Employers Liability Act (“FELA”), and general maritime law for injuries he allegedly sustained on October 31, 2014 while attempting to exit his bunk after being suddenly awoken by an unannounced drill.3 Johnson, a U.S. citizen, worked as a casino pit supervisor aboard the Norwegian Dawn (“the Dawn”), a Bahamian-flagged passenger cruise vessel operated by NCL.4 Johnson’s employment with NCL, which began on August 15, 2014 and was scheduled to last until February 15, 2015,5 was governed by a Seafarer’s Employment Agreement (“Employment Agreement”), which contained an arbitration clause mandating that any claims relating in any way to Johnson’s employment would be “referred to and resolved exclusively by binding arbitration pursuant to United Nations Convention on Recognition and Enforcement of Foreign Arbitral Awards (New York 1958) (‘The Convention’).”6

On September 14, 2015, Defendant filed a “Notice of Removal” pursuant to 9 U.S.C. § 205, which provides for removal of causes of action relating to an arbitration agreement falling under the Convention.7 Defendant then filed a “Motion to Compel Arbitration and Stay Proceedings” on September 30, 2015.8 On October 20, 2015, Johnson filed an opposition.9 On October 28, 2015, with leave of Court, Johnson filed an amended opposition solely to correct typographical errors.10 On the same day, Defendant filed a reply in support of its motion to compel arbitration and stay proceedings.11

While the motion to compel arbitration was pending, on October 13, 2015, Johnson filed a motion to remand the casé.12 NCL filed an opposition on October 20, 2015.13 With leave of Court, Johnson filed a reply in support of remand on October 29, 2015,14 and NCL filed a sur-reply on the same day.15

II. Parties’ Arguments

A. Motion to Compel Arbitration and Stay Proceedings

1. Defendant’s Arguments in Support of Its Motion to Compel Arbitration and Stay Proceedings

In its motion, NCL argues that arbitration of Plaintiffs claims is the exclusive and mandatory form of dispute resolution under the Employment Agreement.16 NCL argues that, because Plaintiff signed an arbitration clause pursuant to the Convention, the Court may engage in only a limited inquiry to determine whether the Convention requires compelling arbitration in a particular case.17 According to NCL, the [341]*341Court’s preliminary inquiry consists of determining whether: (1) there is a written agreement to arbitrate the matter; (2) the agreement provides for arbitration in a Convention signatory nation; (3) the agreement arises out of a commercial legal relationship; and (4) one of the parties is not a U.S. citizen, or where all parties to the agreement are U.S. citizens, the relationship involves property located abroad, envisages performance or enforcement abroad, or has some other reasonable relation with one or more foreign states.18 NCL avers that if the four jurisdictional prerequisites are met, and no affirmative defense applies, the Court must compel arbitration.19

Here, NCL contends, all jurisdictional prerequisites are met and arbitration is therefore required.20 According to NCL, it is “unquestionabl[e]” that there is a written agreement to arbitrate this dispute, which provides for arbitration in the United States, a Convention signatory.21 NCL also avers that the employment relationship between itself and Johnson was a commercial relationship that envisaged performance abroad.22 NCL claims that the Convention therefore applies, and because Plaintiff lacks any basis for attacking the arbitration clause’s validity or ability to be performed, the clause must be enforced.23

Specifically, NCL argues that the Employment Agreement “unquestionably envisaged performance abroad” given that Johnson’s work as a casino pit supervisor was to be performed primarily outside the United States.24 According to NCL, during Plaintiffs time on the Dawn, it touched ports in ten different countries and constantly sailed.25 NCL argues that although both it and Plaintiff are U.S. citizens, the Convention explicitly states that a legal relationship entirely between citizens of the United States may nevertheless be governed by the Convention if a contract for work on a vessel in foreign waters envisages performance abroad.26 According to NCL, in Freudensprung v. Offshore Technical Services, Inc., the Fifth Circuit affirmed a district court decision compelling arbitration in a case where the agreement at issue was between an American company and an American individual for work aboard a sea-going barge in West African waters, finding that the agreement envisaged performance abroad.27

NCL contends that the term “abroad” is “generally defined as ‘[ojutside a country,’ ”28 which is consistent with the strong public policy in favor of international arbitration, as well as the Fifth Circuit’s holding in Freudensprung,29 According to NCL, the definition of “abroad” is not limited to foreign soil, and instead encom[342]*342passes any place outside of the United States and its territorial waters, including international waters and the territorial waters of other nations.30 NCL cites other recent cases in which it claims, in the passenger cruise ship context, crewmem-ber employment agreements were found to envisage performance abroad where the plaintiffs work was to be performed primarily outside the United States.31 In fact, NCL claims, in D’Cruz v. NCL (Bahamas) Ltd., a judge in the Southern District of Florida compelled the plaintiff, an American IT systems manager, to arbitrate claims for injuries allegedly sustained on-board the Dawn, the same vessel involved in the present case.32

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Bluebook (online)
163 F. Supp. 3d 338, 2016 U.S. Dist. LEXIS 20636, 2016 WL 675705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-ncl-bahamas-ltd-laed-2016.