New Jones Act case from the Fourth Circuit Court of Appeals. The case is Aggarao v. MOL Ship Management Co., 2012. U.S. App. LEXIS 5525 and the original opinion can be found here.
Facts: A seaman was injured onboard the M/V Asian Spirit in Chesapeake Bay, near Baltimore, Maryland. The "devastating" injury resulted in paraplegia. His employ was pursuant to an employment agreement which contained an arbitration provision, a choice of law provision and a claims provision. After his initial treatment, defendants offered to repatriate the seaman to the Philippines, pursuant to his employment agreement. Out of concern for his followup medical care, the seaman refused. He eventually brought suit for maintenance and cure, unseaworthiness, wages, Jones Act and general maritime law. The Defendants sought to compel arbitration in the Philippines, pursuant to the employment agreement. The trial court concluded that the arbitration provision governed the dispute and found venue in the United States wanting.
Issue on appeal: does the arbitration provision, as enforced by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, preclude jurisdiction in the federal courts of the United States?
Analysis: the Fourth Circuit enforced the arbitration provision and affirmed the trial court's decision, but it also vacated the dismissal by the trial court, holding that a "stay" of the litigation pending resolution of the arbitration was appropriate. Further, the Fourth Circuit remanded the case to hear Plaintiff's maintenance and cure which, the Court found, were required to be heard (on Plaintiff's motion for preliminary injunction) as to maintain the status quo vis a vis his medical condition.
Comments