Arbitration of Seafarer Employment Dispute

The US Court of Appeals for the Ninth Circuit ruled that a dispute between a seafarer and the employer/ship operator is subject to arbitration where the employment contract specifically provides for arbitration of such disputes.

Plaintiff employees served on a cruise ship operated by defendant employer. They brought suit, alleging that they were not fully and promptly paid wages due. Defendant moved to compel arbitration in accordance with the employment contract. Plaintiffs contended that their employment contracts were exempt from compulsory arbitration. The dispute required interpretation of the relationship between the Federal Arbitration Act (FAA) and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act.

The court held that, since the employment contract must be considered as commercial, the exemption clause of the FAA applied and the arbitration provision of the contract was enforceable in accordance with the Foreign Arbitral Awards Act. Defendant employer was represented by Sandy Bohrer, Scott Ponce, and Paul Workman of this firm. Rogers v. Royal Caribbean Cruise Line, No. 07-55071 (9th Cir., November 6, 2008).

(Source: Holland & Knight)