Slavchev v. Royal Caribbean Cruises, Ltd.

559 F.3d 251, 2009 A.M.C. 667, 28 I.E.R. Cas. (BNA) 1463, 2009 U.S. App. LEXIS 5112, 2009 WL 606664
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 11, 2009
Docket07-2036
StatusPublished
Cited by15 cases

This text of 559 F.3d 251 (Slavchev v. Royal Caribbean Cruises, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slavchev v. Royal Caribbean Cruises, Ltd., 559 F.3d 251, 2009 A.M.C. 667, 28 I.E.R. Cas. (BNA) 1463, 2009 U.S. App. LEXIS 5112, 2009 WL 606664 (4th Cir. 2009).

Opinion

Vacated and remanded with instructions by published opinion. Judge NIEMEYER wrote the opinion, in which Judge MICHAEL and Judge GREGORY joined.

OPINION

NIEMEYER, Circuit Judge:

Relying on diversity jurisdiction conferred by 28 U.S.C. § 1332(a)(2), Rosen Slavchev, a citizen of Bulgaria, commenced this action against his former employer, Royal Caribbean Cruises, Limited, a Liberian corporation with its principal place of business in Florida. Slavchev sued Royal Caribbean for breach of contract and related claims arising out of an alleged oral contract to provide him compensation, beyond the payments he received for maintenance and cure, for his disability suffered while he was employed as a seaman with Royal Caribbean. In his complaint, Slav-chev demands “no less than” $100,000 in damages and a jury trial.

On Royal Caribbean’s motion, the district court entered summary judgment in favor of Royal Caribbean, concluding that Slavchev failed to advance sufficient evi *253 dence to demonstrate the existence of a contract.

On appeal, we invited the parties to submit supplemental briefs on subject matter jurisdiction. Now finding no subject matter jurisdiction, we vacate the district court’s judgment and remand for dismissal for lack of subject matter jurisdiction.

I

Slavchev is a Bulgarian citizen who worked as a cleaner on board the Royal Caribbean cruise ship Rhapsody of the Seas. While working on the ship, he was diagnosed with ulcerative colitis, a chronic condition that responded well to medication. After a short convalescence, Slav-chev returned to work on board the Rhapsody in April 2003. Three months later, however, he quit because he was tired and “did not have a desire to work.” He returned to Bulgaria to work as a TV salesman and a waiter, and later he came to the United States on a student visa and worked as a waiter and a lifeguard.

After quitting work for Royal Caribbean and returning to Bulgaria, Slavchev continued to experience symptoms related to his colitis and obtained treatment for the condition in Bulgaria. When he contacted Royal Caribbean for reimbursement of his expenses, Royal Caribbean paid him maintenance (wages) and cure (medical expenses) until Slavchev attained “maximum medical improvement” in February 2004. After Slavchev’s personal physician declared that Slavchev had reached maximum medical improvement, Royal Caribbean ceased making payments to Slavchev, as its responsibility for maintenance and cure had ended. See Calmar S.S. Corp. v. Taylor, 303 U.S. 525, 530, 58 S.Ct. 651, 82 L.Ed. 993 (1938) (finding no duty “beyond a fair time after the voyage in which to effect such improvement in the seaman’s condition as reasonably may be expected to result from nursing, care, and medical treatment”); Carleno v. Marine Transp. Lines, Inc., 317 F.2d 662, 665-66 (4th Cir.1963) (holding the duty of maintenance and cure “is fulfilled when subsistence and medical care are furnished to the point where remedial medicine and surgery can do no more”). At the point when Slavchev had attained maximum medical improvement, his physician found him to be 60% disabled.

Slavchev does not make any claim for maintenance and cure. Rather, he alleges that in or about December 2003, Royal Caribbean’s claims-handling employee, Andy Gillig, made an oral promise to pay Slavchev compensation for his 60% disability. As Slavchev testified, “Mr. Gillig told me that another department of Royal Caribbean in Miami or some-place would cover 60 percent of my disability, and there was a lady Samantha or something.” Slavchev could provide no further details of the agreement, except that it was made by telephone sometime around the end of 2003. He alleges that Gillig’s oral promise was confirmed in an e-mail that Gillig sent to Slavchev’s employment agency, which stated, “At this time, I will stop all of Mr. Slavchev’s sick wages, and send his chart to claims, to be compensated appropriately for the 60% disability rating that the doctor has given him.” When Slavchev was asked about what he gave in exchange for that promise, he testified, “I did not agree to anything, I just waited. I said okay, and I just waited to receive — I don’t know what happened. I was waiting for the 60 percent compensation.”

Based on this evidence, Slavchev commenced this action against Royal Caribbean for breach of contract and related duties, seeking a permanent injunction directing Royal Caribbean to provide him 60% disability compensation and at least *254 $100,000 in damages. After discovery, the district court granted Royal Caribbean’s motion for summary judgment, finding that no enforceable contract had been reached.

On appeal, we requested and the parties submitted supplemental memoranda on the district court’s subject matter jurisdiction, as well as our own.

II

In his complaint, Slavchev invoked diversity jurisdiction as conferred under 28 U.S.C. § 1332(a)(2) and demanded to have his claims tried to a jury. Even though he might have invoked admiralty and maritime jurisdiction under 28 U.S.C. § 1333, he would not have had the benefit of a jury trial. See In re Lockheed, Martin Corp., 503 F.3d 351, 354-55 (4th Cir.2007). Royal Caribbean suggested explicitly in its answer and implicitly in its motion for summary judgment that the district court also had jurisdiction under 28 U.S.C. § 1333, arguing that any maintenance and cure claim under admiralty law had ended with the determination made by Slavchev’s personal physician that Slavchev had reached maximum medical improvement. Slavchev responded that even if the right to maintenance and cure had ended, “Plaintiff neither asserted in his complaint, nor asserts now, that his contract claim flows from that body of law [maintenance and cure under maritime law]. As has been made clear throughout this case, Plaintiff asserts an enforceable agreement between himself and [Royal Caribbean].”

To support his invocation of diversity jurisdiction, Slavchev alleged that he is a citizen of Bulgaria and that Royal Caribbean is “a corporation with its principal place of business in Florida.” Slavchev did not make any allegation about where Royal Caribbean was incorporated. When we requested supplemental memoranda on subject matter jurisdiction, however, both parties confirmed that Royal Caribbean is incorporated under the laws of Liberia, a foreign state.

Relying on Royal Caribbean’s Florida citizenship, Slavchev now argues that he satisfies 28 U.S.C. § 1332

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559 F.3d 251, 2009 A.M.C. 667, 28 I.E.R. Cas. (BNA) 1463, 2009 U.S. App. LEXIS 5112, 2009 WL 606664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slavchev-v-royal-caribbean-cruises-ltd-ca4-2009.