UNITED STATES 1012

United States District Court, Southern District of Florida, 7 October 2020, CASE NO.: 1:20-22133-CIV-MARTINEZ
(Ryan Maunes Maglana et al. v. Celebrity Cruises Inc.)

07 - 10 - 2020

UNITED STATES 1012

Yearbook Yearbook Commercial Arbitration, S. W. Schill (ed.), Vol. XLVI (2021)
Jurisdiction United States
Summary

The Court granted the defendant's motion to compel arbitration. Maglana and the other plaintiffs claimed that the defendant had held for months, and continued to hold, "thousands of souls captive aboard its fleet" without wages or the ability to return home, without a justifiable reason – in fact, because of the COVID-19 pandemic. The Court found that it should compel arbitration as the four jurisdictional requirements for compelling arbitration under the New York Convention were met: there was an agreement in writing within the meaning of the Convention, which provided for arbitration in the territory of a Convention signatory and arose out of a legal relationship, whether contractual or not, which was considered commercial; and a party to the agreement was not an American citizen, or the commercial relationship had some reasonable relation with one or more foreign states. The Court also found that the arbitration provisions were not rendered invalid because of the defendant's alleged contractual nonperformance (unclean hands).

Related topics
217

The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.

Referral to arbitration in general
220

The court discusses how to interpret the Convention’s requirement that the agreement is not null and void etc., as well as specific cases of invalidity: e.g., lack of consent (misrepresentation, duress, or fraud), vague wording of the arbitral clause; other terms of the contract contradict the intention to arbitrate, etc.

"Null and void", etc.
UNITED STATES 1012