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In affirming a federal district court's ruling compelling arbitration, the Eleventh Circuit Court of Appeals held that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards supersedes the Seamen's Wage Act.
In Lobo v. Celebrity Cruises, Inc., No. 06-12468, 2007 WL 1628073, (11th Cir. June 7, 2007), Lobo, a stateroom attendant, sued Celebrity for unpaid wages pursuant to the Seamen's Wage Act. Celebrity moved to dismiss and compel arbitration pursuant to the employment contract's arbitration agreement.
Lobo argued that the arbitration clause was invalid because it conflicted with the Seamen's Wage Act. Moreover, Lobo argued that the Supreme Court's decision in U.S. Bulk Carriers, Inc. v. Arguelles, 400 U.S. 351 (1971), rendered inapplicable any claims involving unpaid wages of seamen under the Convention. The trial court dismissed Lobo's claim and Lobo appealed.
The Court held that the Convention compels federal courts to submit qualifying disputes to arbitration. Moreover, Arguelles was inapplicable because the Supreme Court issued the decision prior to the Convention's ratification. Finally, providing industry specific exemptions into the Convention's broad language would hinder the Convention's express purpose favoring arbitration.
The Court noted that the Supreme Court found the Convention to be "strongly persuasive evidence of congressional policy." Additionally, Congressional policy favors "uniform enforcement of arbitration agreements, despite the potential presence of parochial policies present in other parts of the U.S. Code."
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