Rodrigo R. Pagaduan v. Carnival Corporation, et al.

At a glance

Parties

Rodrigo R. Pagaduan v. Carnival Corporation (d/b/a Carnival Cruise Lines), Carnival PLC, Melvin Babi, Doctor Doe (ship's doctor) and Nurse Doe (ship's nurse)

Case no.

U.S. Court of Appeals, Second Circuit, No. 19-3400-cv

Forum and rules

Court proceedings under the New York Convention (9 U.S.C. § 207); underlying arbitration before a Philippine Labor Arbiter

Court

U.S. Court of Appeals for the Second Circuit, on appeal from the U.S. District Court for the Eastern District of New York (Amon, J.)

Panel

Circuit Judges Dennis Jacobs, Rosemary S. Pooler, Raymond J. Lohier, Jr.

Underlying award(s)

Decision of the Philippine Labor Arbiter granting Pagaduan a sickness allowance

Sector

Maritime employment; cruise line seafarer injury

Outcome

Affirmed the District Court's order of 20 September 2019, which had denied Pagaduan's motion for nonenforcement and/or vacatur of the award (summary order, 25 November 2020).

Amount

Award: USD 5,100 sickness allowance plus ten percent as attorney's fees

The dispute

Rodrigo R. Pagaduan was injured while working as a motorman on a Carnival Cruise Lines ship. The District Court compelled arbitration, and the Second Circuit affirmed that order in 2017. A Philippine Labor Arbiter then awarded Pagaduan USD 5,100 in sickness allowance plus ten percent as attorney's fees and refused other relief. Pagaduan, the award creditor, moved to stop enforcement of the award or to vacate it. He relied on Article V(1)(b) of the New York Convention (he was unable to present his case) and Article V(2)(b) (public policy). On public policy, he argued that the lower remedies of Philippine law conflicted with the special protection the Jones Act gives to seamen. The District Court denied the motion and he appealed.

Key holdings

1. Article V(1)(b) does not apply. Pagaduan filed several long briefs, medical records and affidavits, but chose to argue almost only that the Labor Arbiter lacked jurisdiction. That choice limited his merits arguments, but it does not mean he was "unable to present his case". p. 2–3
2. The Arbiter found that the individual defendants (Melvin Babi and the Doctor and Nurse Does) had not been properly served. This did not deny Pagaduan a meaningful hearing. The record does not show that Babi received the summons or authorised a co-defendant to accept service for him. Pagaduan was also awarded a sickness allowance and fees. p. 3
3. Article V(2)(b) does not apply. The public policy defence is construed narrowly and covers only violations of the most basic notions of morality and justice. Federal public policy is not violated merely because foreign law gives a lesser or different remedy than the Jones Act might. p. 3
4. The party opposing enforcement under the New York Convention carries a heavy burden, and review of foreign awards is very limited. The Court rejected Pagaduan's remaining arguments and affirmed. pp. 2–3

Procedural history

1. 2017The Second Circuit affirmed the District Court's order compelling arbitration (Pagaduan v. Carnival Corp., 709 F. App'x 713).
2. The Philippine Labor Arbiter granted Pagaduan USD 5,100 sickness allowance plus ten percent as attorney's fees and declined other relief.
3. 20 September 2019The Eastern District of New York (Amon, J.) denied Pagaduan's motion for nonenforcement and/or vacatur of the award.
4. 25 November 2020Second Circuit summary order affirming the District Court.

Tribunal, counsel and experts

Decided by

• Dennis Jacobs Judge, U.S. Court of Appeals for the Second Circuit
• Rosemary S. Pooler Judge, U.S. Court of Appeals for the Second Circuit
• Jr. Raymond J. Lohier Judge, U.S. Court of Appeals for the Second Circuit

For the claimant

Felix Q. Vinluan

For the respondent

Maltzman & Partners, PA

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Keywords

• New York Convention
• Article V(1)(b)
• Article V(2)(b)
• public policy
• unable to present case
• due process
• Jones Act
• seaman injury
• Philippine Labor Arbiter
• cruise ship
• Carnival Cruise Lines
• nonenforcement
• vacatur
• foreign arbitral award
• service of summons
• Second Circuit

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