Krstic v. PRINCESS CRUISE LINES, LTD.(CORP.)

706 F. Supp. 2d 1271, 2010 U.S. Dist. LEXIS 113166, 2010 WL 1542083
CourtDistrict Court, S.D. Florida
DecidedMarch 31, 2010
DocketCase 09-23846-CIV
StatusPublished
Cited by41 cases

This text of 706 F. Supp. 2d 1271 (Krstic v. PRINCESS CRUISE LINES, LTD.(CORP.)) 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
Krstic v. PRINCESS CRUISE LINES, LTD.(CORP.), 706 F. Supp. 2d 1271, 2010 U.S. Dist. LEXIS 113166, 2010 WL 1542083 (S.D. Fla. 2010).

Opinion

ORDER GRANTING MOTION TO COMPEL ARBITRATION [DE 5J; STRIKING PROVISION FROM SEAFARER’S AGREEMENT; STAYING CASE PENDING ARBITRATION; ADMINISTRATIVELY CLOSING CASE

ALAN S. GOLD, District Judge.

I. Introduction

THIS CAUSE is before the Court upon Defendant’s Motion to Compel Arbitration [DE 5], filed February 4, 2010. On February 22, 2010, Plaintiff filed a response in opposition [DE 11], and on March 4, 2010, Defendant filed a reply [DE 18]. 1 Having carefully considered the relevant submissions, the record, and the applicable case law, I grant the motion in part, deny the motion in part, and stay this matter pending arbitration for the reasons that follow.

II. Background

This case arises from injuries sustained by the Plaintiff, a Serbian seaman by the *1275 name of Nikola Krstic (“Plaintiff’), while employed aboard Defendant Princess Cruise Lines Ltd.’s (“Defendant” or “Princess”) Bermuda-flagged vessel, the “Island Princess” [DE 5]. On December 29, 2009, Plaintiff filed a two-count complaint alleging Jones Act negligence 2 and failure to provide prompt and adequate treatment. [DE 1].

On February 4, 2010, Defendant moved to compel arbitration pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 9 U.S.C. § 201, et seq. (“the Convention Act”). 3 The basis for Defendant’s motion to compel is an agreement executed by Plaintiff on May 6, 2008 entitled “Acceptance of Employment Terms and Conditions” (“the Acceptance Agreement”) providing that “any and all disputes shall be referred to and resolved by arbitration as provided for in the Principal Terms and Conditions of Employment,” which Plaintiff acknowledged that he had received, reviewed, and accepted at the time he executed the Acceptance Agreement. [DE 5-1]. In this regard, Article 14 of the Principal Terms and Conditions of Employment (“the Principal Terms”) contains two pertinent paragraphs. The first is the arbitration clause itself, which provides, in pertinent part, that “any and all disputes ... relating to or in any way arising out of or connected with” services performed by Plaintiff for Defendant “shall be referred to and resolved exclusively by binding arbitration pursuant to [the Convention] in Bermuda____” [DE 5 — 2]. 4 The second is a choice-of-law clause, which provides, in pertinent part, that “any such dispute arising under or in connection with these terms or [Plaintiffs] service shall be governed exclusively in all respects by the laws of Bermuda without regard to principles of conflicts of laws.” Id. The Principal Terms also contain a severability provision in Article 15, which states that “[t]he conditions of these Terms are severable. If any of these terms is determined to be void or otherwise unenforceable by any court or tribunal of competent jurisdiction, then the remainder of the Terms shall stand in full force in effect.” Id.

Defendant now moves this Court to compel arbitration pursuant to the Convention and the aforementioned provisions of the Principal Terms, while “stipulating” to the application of U.S. law to Plaintiffs statutory claims in the Bermuda arbitration. See [DE 5]. Plaintiff opposes Defendant’s motion, arguing that the arbitration clause is void or unenforceable for a number of reasons. First, he asserts that the arbitration clause is void because the Principal Terms impermissibly restrict Plaintiffs U.S. statutory and common law rights and remedies in violation of public policy. See [DE 11]. Second, Plaintiff asserts that his Jones Act claim is non-arbitrable, arguing that the case of Bautista v. Star Cruises — • which affirmed an order compelling arbitration of plaintiffs Jones Act claims under the Convention — was wrongly decided. See generally 396 F.3d 1289 (11th Cir.2005). Third, Plaintiff argues that the arbitration provision is “defective due to the parties’ unequal bargaining power.” [DE 11]. Fourth, Plaintiff argues that the arbitration provision is unenforceable because “it requires Plaintiff to appear for both physical and testimonial examinations and to provide document production, but ... appears to require nothing in the way of *1276 compulsory discovery from Princess.” Id. Fifth, Plaintiff argues that a Bermuda arbitration would be prohibitively expensive; and finally, Plaintiff argues that the arbitration provision is unclear and ambiguous and should thus be considered permissive, not mandatory. Id. I will address each argument in turn.

III. Standard of Review

Courts deciding motions to compel arbitration under the Convention and its implementing legislation are bound to conduct a “very limited inquiry.” Bautista, 396 F.3d at 1294-95. According to the Eleventh Circuit, “[a] district court must order arbitration unless (1) the [Convention’s] four jurisdictional prerequisites are not met, ... or ... one of the Convention’s affirmative defenses applies.” Id. (citations omitted). The four jurisdictional prerequisites are that: “(1) there is an agreement in writing within the meaning of the Convention; (2) the agreement provides for arbitration in the territory of a signatory of the Convention; (3) the agreement arises out of a legal relationship, whether contractual or not, which is considered commercial; and (4) a party to the agreement is not an American citizen, or that the commercial relationship has some reasonable relation with one or more foreign states.” Id., n. 7 (citation omitted). These jurisdictional prerequisites are not at issue in the instant case.

As to the Convention’s affirmative defenses, “[t]he Convention requires that courts enforce an agreement to arbitrate unless the agreement is ‘null and void, inoperative or incapable of being performed.’ ” Id. at 1301 (quoting the Convention, art. 11(3)). The “null and void” clause must be read narrowly because “the signatory nations have declared a general policy of enforceability of agreements to arbitrate.” Bautista v. Star Cruises, 286 F.Supp.2d 1352, 1366 (S.D.Fla.2003). The Eleventh Circuit has also held that the “public policy” provision found at Article V(2)(b) of the Convention — which provides, in pertinent part, that “[r]ecognition and enforcement of an arbitral award may also be refused if ... [t]he recognition or enforcement of the award would be contrary to the public policy of that country” — is also an “affirmative defense[] to a suit that seeks a court to compel arbitration.” Thomas v. Carnival Corp., 573 F.3d 1113 (11th Cir.2009). 5

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706 F. Supp. 2d 1271, 2010 U.S. Dist. LEXIS 113166, 2010 WL 1542083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krstic-v-princess-cruise-lines-ltdcorp-flsd-2010.