Agnelo Gonsalvez v. Celebrity Cruises Inc.
750 F.3d 1195
11th Cir.2013Background
- Former stateroom attendants on defendant cruise ships claimed wage underpayment under the Seaman’s Wage Act.
- Arbitration was demanded; the grievance procedure under the collective bargaining agreement was a precondition to arbitration.
- Arbitrator granted the defendant’s motion to dismiss the arbitration on January 22, 2011.
- Plaintiffs filed suit in district court on June 19, 2012 seeking vacatur under the Convention.
- District court dismissed under Rule 12(b)(6) as untimely under the statute of limitations.
- The Eleventh Circuit affirmed, holding the FAA three-month limit applies via the Convention residual clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What statute of limitations governs vacatur under the Convention | Vacatur should follow the Convention’s three-year period for confirmation. | FAA three-month limit applies via residual clause to vacatur actions. | FAA three-month limit applies; suit time-barred |
| Whether sanctions are warranted for the appeal | Appeal pursued with some authority supporting vacatur timing. | Sanctions appropriate for baseless arbitration-loss litigation. | Sanctions not warranted |
Key Cases Cited
- Ironworkers Local Union 68 v. AstraZeneca Pharm., LP, 634 F.3d 1352 (11th Cir. 2011) (de novo review of Rule 12(b)(6) dismissal; limitations analysis relevance)
- La Grasta v. First Union Sec., Inc., 358 F.3d 840 (11th Cir. 2004) (face-of-complaint timeliness standard for dismissal under Rule 12(b)(6))
- B.L. Harbert International, Inc. v. Hercules Steel Co., 414 F.3d 914 (11th Cir. 2006) (discussed sanctions for baseless arbitration-loss litigation (abrogated on other grounds))
- Frazier v. Citifinancial Corp., 604 F.3d 1313 (11th Cir. 2010) (cites for sanctions discussion; post-Hercules authority context)