Wilbur Smith v. Seaport Marine, Inc.
764 F.3d 1302
| 11th Cir. | 2014Background
- Four seamen (Jurich, Gann, Wood, Smith) signed agreements with maritime employment agencies (Compass Marine, Seaport Marine) assigning the agencies a portion of their first 6–10 paychecks in exchange for placement services.
- The agreements included a "Paycheck Mailing Agreement" requiring employers to send paychecks to the agency while the debt remained outstanding; the agency would deduct its fee and forward the balance.
- The Paycheck Mailing Agreements characterized the assignment as "irrevocable" until repayment.
- Agencies found jobs and collected fees under the agreements; agencies fully performed and received payment by assignment of wages.
- The seamen sued under the general maritime law, alleging the wage assignments were invalid under 46 U.S.C. § 11109(b) (pre‑payment wage assignments do not bind the seaman) and sought recovery of collected wages; district court granted summary judgment to defendants.
- Eleventh Circuit affirmed, adopting the district court opinions and noting the agencies’ use of the word "irrevocable" was improper and contrary to seamen’s statutory rights, but affirming summary judgment on the § 11109(b)-based wage claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether pre‑payment assignments in the Paycheck Mailing Agreements bound seamen under maritime law and 46 U.S.C. § 11109(b) | Assignments (and collected wages) are invalid because § 11109(b) prohibits binding wage assignments made before payment; seamen entitled to recovery | Agencies performed contracts and received fees by wage assignment; disputes over enforceability do not entitle seamen to recovery on maritime wage claim | Court affirmed summary judgment for agencies on the plaintiffs’ § 11109(b)-based wage claims; adopted district court opinions and noted the word "irrevocable" was improper and contrary to § 11109(b) |
Key Cases Cited
- Wilder v. Inter-Island Steam Navigation Co., 211 U.S. 239 (interpreting predecessor to 46 U.S.C. § 11109) (historical precedent on pre‑payment wage assignments)
- Smith v. Seaport Marine, Inc., 981 F. Supp. 2d 1188 (S.D. Ala. 2013) (district court opinion adopted by Eleventh Circuit)
- Allison v. McGhan Med. Corp., 184 F.3d 1300 (11th Cir. 1999) (summary judgment standard cited)