Mervy Lloyd Mongaya and Richard J. Dodson v. AET MCV BETA, LLC

At a glance

Parties

Mervy Lloyd Mongaya and Richard J. Dodson v. AET MCV BETA, LLC

Case no.

Civil Action Nos. 18-8827, 18-8828 and 18-8829 (consolidated), Section "F"

Court

U.S. District Court, Eastern District of Louisiana

Treaty

New York Convention (9 U.S.C. §§ 201–205)

Tribunal

Judge Martin L. C. Feldman

Sector

Maritime; seafarer employment

Outcome

Motion to remand granted; motion to dismiss denied for lack of jurisdiction (19 November 2018).

Amount

The vessel owner provided USD 9.5 million in security for the personal injury claims in Louisiana. The court made no money award.

The dispute

Mervy Lloyd Mongaya, a Filipino seaman, worked aboard the Marshall Islands-flagged M/T EAGLE TEXAS under a Philippine Overseas Employment Administration contract with AET Shipmanagement Pte Ltd. The contract contained an arbitration clause and a Philippine choice-of-law clause. He was seriously injured aboard the vessel off Florida on 4 August 2016. The Marshall Islands courts compelled him to arbitrate his claims in the Philippines, including those against the vessel owner, which had not signed the contract. Mongaya then sued the vessel owner in Louisiana state court for personal injury. Together with his lawyer, Richard J. Dodson, he also sued the owner for defamation and sought an injunction against the owner's proceedings in the Marshall Islands. The owner removed all three suits to federal court under 9 U.S.C. § 205 and moved to dismiss them. The plaintiffs moved to remand.

Key holdings

1. The arbitration clause in Mongaya's employment contract falls under the New York Convention. It arises from a commercial legal relationship and one party is not a U.S. citizen. The Marshall Islands Supreme Court declined to apply the Convention only because the Marshall Islands had not enacted it into domestic law. The fact that the vessel owner did not sign the contract does not matter to this test. pp. 7–8
2. Removal of the personal injury action under § 205 was proper. The owner asserted that the arbitration clause provides a defense, and it was at least conceivable that the clause would affect the outcome. This meets the low "relates to" bar set in Beiser v. Weyler. pp. 10–11
3. The Defamation and Injunction Actions do not "relate to" the arbitration agreement within § 205. The owner did not contend that those claims are arbitrable. It also did not explain how the arbitration clause would serve as a defense or affect their outcome. They were therefore not properly removed. pp. 11–12
4. Mongaya voluntarily dismissed the personal injury action, and no independent basis for federal jurisdiction exists over the remaining two actions. The court therefore granted remand and denied the motion to dismiss for lack of jurisdiction. p. 12

Procedural history

1. 1 March 2016Mongaya signs a POEA employment contract with AET Shipmanagement Pte Ltd. The contract contains an arbitration clause.
2. 4 August 2016Mongaya is injured aboard the M/T EAGLE TEXAS off the coast of Florida.
3. 14 March 2017Mongaya sues the vessel owner and others in the Marshall Islands High Court.
4. 10 August 2017The Marshall Islands High Court stays the suit and compels arbitration in the Philippines as to all defendants. The Marshall Islands Supreme Court affirms on 10 August 2018.
5. 31 May 2018A Philippine arbitrator issues an award in Mongaya's favour, which Mongaya appeals to the National Labor Relations Commission. He had not included the vessel owner in the arbitration.
6. 27 August 2018Mongaya sues the vessel owner in the 23rd Judicial District Court, St. James Parish, Louisiana. The owner provides USD 9.5 million in security.
7. 10 September 2018Mongaya and Dodson file the Defamation and Injunction Actions in Louisiana state court.
8. 21 September 2018The vessel owner removes all three actions to federal court under 9 U.S.C. § 205. The court consolidates them.
9. 1 November 2018Mongaya voluntarily dismisses the personal injury action.
10. 19 November 2018The court grants remand and denies the motion to dismiss for lack of jurisdiction.

Tribunal, counsel and experts

Decided by

• Martin L. C. Feldman Judge, U.S. District Court, Eastern District of Louisiana

For the claimant

Dodson & Hooks APLC

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Keywords

• New York Convention
• 9 U.S.C. § 205
• removal
• remand
• relates to
• falls under the Convention
• Beiser v. Weyler
• Filipino seaman
• POEA contract
• non-signatory
• defamation
• anti-suit injunction
• Marshall Islands
• M/T EAGLE TEXAS
• maritime personal injury
• federal question jurisdiction

Summary generated with AI from the published documents — refer to the award for the authoritative text.