ORDER ON DEFENDANTS’ MOTIONS TO DISMISS
THIS CAUSE came before the Court upon the following motions:
(1) Defendant D. Agustini & Asociados, S.A.’s (“Agustini”) motion to dismiss amended complaint;
(2) Agustini’s request for oral argument on its motion to dismiss;
(3) Plaintiff Carlos Gary’s joinder in the request for oral argument filed by Agustini; and
(4) Defendants Stellar Cruise Services, Ltd. (“Stellar”) and Hallmark Cruise Services, Inc.’s (“Hallmark”) motion to dismiss the amended complaint, or in the alternative, for a more definite statement.
For the reasons stated below, the Court grants in part the defendants’ motions to dismiss the amended complaint. The remaining motions are denied as moot.
PROCEDURAL AND FACTUAL BACKGROUND
On June 4,1994, Plaintiff Carlos Gary filed an amended seaman’s class action complaint, invoking this Court’s admiralty and maritime jurisdiction. Gary asserts that he is a seaman within the meaning of 28 U.S.C. § 1916, which entitles a seaman to commence an action in federal court without prepayment of costs. According to Gary, the defendants are maritime employers engaged in the business of supplying crew members, such as himself, to passenger vessels that sail in the United States and international waters.
As the basis for this class action suit, Gary alleges that he was required to pay an illegal fee of $450 to one or more of the defendants for an employment letter, prior to obtaining a position as utility man aboard the cruise ship Regent Rainbow. The amended complaint states that the Regent Rainbow sails out of Tampa, Florida, but provides no indication of its registry. Moreover, Gary does not state where he made the allegedly illegal payment of $450 to the defendants. The amended complaint refers to the employment letter Gary claims to have obtained in exchange for the $450 payment as Exhibit # 1. A review of the record reveals, however, that Gary failed to attach any exhibits to his pleading.
According to Gary, all of the potential class members, which he estimates to number 2,500, have been required to pay similarly illegal fees to one or more of the defendants in exchange for employment letters, prior to obtaining positions as crew members on passenger ships. Gary does not specify whether the potential class members sought work on the Regent Rainbow, or on other, unnamed, passenger ships, nor where those allegedly illegal payments were made.
Gary’s amended complaint is in four counts: Count I alleges violations of 46 U.S.C. § 10314; Count II alleges conspiracy to violate 46 U.S.C. § 10314; Count IV is a claim for common law conversion; and Count V is a claim for unjust enrichment.
1
Defendant Agustini seeks dismissal of the amended
PRIVATE CAUSE OF ACTION ANALYSIS FOR SECTION 103U(b)
Title 46, United States Code, Section 10314 provides, in pertinent part:
(a)(1) A person may hot—
(A) pay a seaman wages in advance of the time when the seaman has earned the wages;
(B) pay advance wages of the seaman to another person; or
(C) make to another person an order, note, or other evidence of indebtedness of the wages, or pay another person, for the engagement of seamen when payment is deducted or to be deducted from the seaman’s wage.
(2) a person violating this subsection is hable to the United States Government for a civil penalty of not more than $500. A payment made in violation of this subsection does not reheve the vessel or the master from the duty to pay ah wages after they have been earned.
(b) A person demanding or receiving from a seaman or an individual seeking employment as a seaman, remuneration for providing the seaman or individual with employment, is hable to the Government for a civil penalty of not more than $500.
(c) This section apphes to a foreign vessel when in waters of the United States. An owner, charterer, managing operator, agent, or master of a foreign vessel violating this section is hable to the Government for the same penalty as an owner, charterer, managing operator, agent, or master of a vessel of the United States for the same violation.
46 U.S.C.A. § 10314 (West Pamphlet 1994).
Gary alleges that the defendants have violated section 10314(b) by charging him a fee in order to receive an employment letter. Section 10314(b) imposes a civil penalty on persons engáging in such conduct, but does not exphcitly provide a remedy to the seaman who pays the illegal fee. In his response to' the defendants’ motions to dismiss, Gary acknowledges that section 10314(b)’s statutory language does not expressly provide seamen with a private right of action. Gary argues, however, that an implied right of action exists. In Gary’s words, “Quite simply, this is a very common sense cause of action: it is illegal for shipowners to take pay-off money from unwitting seamen who need jobs; those seaman (sic) should be entitled to their money back.” (Plaintiffs Consolidated Memorandum in Opposition to Defendants’ Motions to Dismiss Amended Complaint, at 4).
The task of implying a private cause of action from the violation of a federal statute, however, is not as simplistic as Gary advocates with his “common sense” approach. In Cort v. Ash, the United States Supreme Court articulated the following four factors that courts should take into account when carrying out this task:
In determining whether a private remedy is implicit in a statute not expressly providing one, several factors are relevant. First, is the plaintiff “one of the class for whose especial benefit the statute was enacted” — that is, does the statute create a federal right in favor of the plaintiff? Second, is there any indication of legislative intent, explicit or implicit, either to create such a remedy or to deny one? Third, is it consistent with the underlying purposes of the legislative scheme to imply such a remedy for the plaintiff? And finally, is the cause of action one traditionally relegated to state law, in an area basically the concern of the States, so that it would be inappropriate to infer a cause of action based solely on federal law?
Cort v. Ash,
In opinions following the
Cort
decision, the Supreme Court has converted the congressional intent factor “into
the determinative factor,
with the other three merely indicative of its presence or absence.”
Thompson v. Thompson,
In ascertaining congressional intent to provide a private remedy, a court must review “the language or structure of the statute,” and “the circumstances of its enactment.”
Thompson,
The statutory framework
In 1983, Congress enacted Public Law 98-89, “An Act to revise, consolidate, and enact certain laws related to vessels and seamen as subtitle II of title 46, United States Code, ‘Shipping’.” The need for this major revision and recodification work arose from the “poorly organized, duplicative, [and] often obsolete” status of the maritime laws of the United States, after nearly two centuries of piecemeal promulgation. H.R.Rep. No. 338, 98th Cong. 1st Sess. 113,
reprinted in
1983 U.S.C.C.A.N. 924, 924. Under the recodifi-cation scheme, Part G of Subtitle II, entitled “Merchant Seamen Protection and Relief,” consolidates statutory provisions pertaining to merchant seamen. Section 10314 falls within Chapter 103, entitled “Foreign and Intereoastal Voyages,” of Part G. A review of this chapter reveals that when Congress
The legislative history
Next, the Court reviews the legislative history accompanying enactment of the statute. The introductory section of the House Report declares:
Some of the oldest and most frequently amended of our maritime laws are those administered by the Coast Guard. These laws, which are referred to in this Report as maritime safety laws, are related primarily to the safety of merchant vessels. They also cover, however, the safety [of] recreational vessels, the protection of merchant seamen, and the protection of the environment.
H.R.Rep. No. 338, 98th Cong. 1st Sess. 113, reprinted in 1983 U.S.C.C.A.N. 924, 925. The report continues:
The Committee intends and hopes that the interpretation of the maritime safety laws as codified and enacted by this bill will be based on the language of the bill itself. The bill, as report, is based on that premise. There should, therefore, be little or no occasion to refer to the statutes being repealed in order to interpret the provisions of this bill.
The Committee also feels, as the courts have held, that the literal language of the statute should control the disposition of the cases. There is no mandate in logic or in case law for reliance on legislative history to reach a result contrary to the plain meaning of the statute, particularly where that plain meaning is in no way unreasonable.”
Id. at 932. The portion of the legislative history’s seetion-by-section review that addresses section 10314 states:
Section 10314 forbids advance payment of wages to seamen prior to the commencement of the seaman’s employment. It provides a civil penalty of $500 for any person making such a payment, and for any person demanding or receiving remuneration for providing a seaman with employment. This means that the use of employment agencies for hiring seamen is prohibited.
Id. at 1008.
A review of these passages indicates that Congress intended for the literal language of section 10314®) to control. Moreover, the report acknowledges that the use of employ
The case law
Finally, the Court reviews the cases which, according to Gary, have implied a private cause of action for the applicable portion of section 10314(b)’s predecessor statute, 46 U.S.C. § 599(a). In
The Sonderborg,
Further in this regard, the Court declines Gary’s invitation to consider cases implying a private right of action for migrant workers under the Wagner-Peyser Act of 1933. As previously discussed, a court’s task in deciding whether to imply a private right of action arising from violations of section 10314(b) consists of ascertaining congressional intent with regard to such statute. Cases interpreting migrant worker statutes, therefore, provide no indication of congressional intent with respect to this seamen’s statute, even if, as argued by Gary, migrant workers are as “defenseless” as seamen. For the same reason, the Court declines Gary’s invitation to analogize from cases interpreting statutes that relate to handicapped individuals and shareholders.
Having reviewed the statutory language and framework, the legislative history, and the case law, the Court finds no congressional intent to create a private cause of action for violations of section 10314(b). The Court, therefore, responds to the threshold issue of whether Gary may bring a claim for violation of section 10314(b) in the negative. 4
LEGAL SUFFICIENCY OF THE FOUR COUNTS IN THE AMENDED COMPLAINT
Having determined that Gary does not have a private cause of action for violations of section 10314(b), the Court concludes that dismissal with prejudice of Count I of the
Applicability of section 103lj(b) to the claims for conversion and unjust enrichment:
Preliminarily, the Court considers Stellar and Hallmark’s argument that Gary has failed to allege sufficient facts to establish the applicability of section 10314 to these claims. Section 10314 applies to certain vessels of the United States and to foreign vessels when in waters of the United States. 5 The amended complaint avers that the Regent Rainbow, the vessel on which Gary allegedly obtained employment by paying a fee in violation of section 10314(b), is a “vessel” within the meaning of 46 U.S.C. § 10314. Gary, however, fails to provide the registry of the Regent Rainbow. He merely states that the Regent Rainbow sails out of Tampa, Florida. In his response to Stellar and Hallmark’s argument, Gary refers to the portion of section 10314 pertaining to foreign vessels, implying that the Regent Rainbow falls within that category. This response does not cure Gary’s failure to plead sufficient facts establishing the applicability of section 10314 to this action. Because Gary’s response appears to indicate that Gary would be able to plead the required facts if granted leave to amend, the Court proceeds to address Gary’s claims for common law conversion and unjust enrichment. 6
The Court’s jurisdiction and applicable law
In asserting these common law claims, Gary has invoked the Court’s admiralty and maritime jurisdiction. For a tort claim to fall within a federal court’s admiralty jurisdiction, “[t]he alleged wrong must occur or be located over a navigable waterway, and the wrong must bear a significant relationship to traditional maritime activity.”
Mullenix v. United States,
Gary has predicated his tort and quasi-contract claims on the defendants’ alleged violations of section 10314(b). It is not clear, however, that linking these claims to the statute, without more, satisfies the jurisdictional requirements outlined above. Because the parties did not address this issue in their briefs, the Court assumes, arguendo, that the claims are cognizable in admiralty. In that event, their legal sufficiency must be addressed within the context of federal maritime jurisprudence.
Garner v. Dravo Basic Materials Co.,
The claim for conversion
“It is well settled that a conversion is an unauthorized act which deprives another of his property permanently or for an indefinite time.”
Senfeld v. Bank of Nova Scotia Trust Co.,
Where the property alleged to have been converted is money, it must be identifiable as a specific chattel.
Belford Trucking Co. v. Zagar,
In support of his conversion claim, Gary alleges that, “Defendants committed an unauthorized and unlawful act when they required the Plaintiff to pay them $450 in violation of 46 U.S.C. § 10314.” (Amended Seaman’s Class Action Complaint, at ¶29). Assuming that Gary’s conversion claim may be predicated on the defendants’ alleged violation of section 10314(b), the claim is facially deficient on two grounds. First, Gary fails to allege that the defendants intended to deprive him of the $450, either by pleading demand and refusal, or by asserting the futility of such demand. Second, the money claimed to have been converted is not identified, or claimed to be identifiable, as a specific chattel. Even more fatal to Gary’s conversion claim is the fact that, as more fully discussed below, the claim is rooted in contract. “[A]n action in tort is inappropriate where the basis of the suit is a contract, either express or implied.”
Belford Trucking,
The claim for unjust enrichment
“The elements of a claim for unjust enrichment are: (1) a benefit conferred upon the defendant by the plaintiff, (2) appreciation by the defendant of such benefit, and (3) acceptance and retention of such benefit by the defendant under such circumstances that it would be inequitable for him to retain it without paying the value thereof.”
Hercules, Inc. v. Pages,
As the basis for his unjust enrichment claim, Gary alleges that the defendants received a direct and tangible benefit when they unlawfully accepted and retained Gary’s $450; and that it would be inequitable for the defendants to retain this money because they obtained it illegally in violation of 46 U.S.C. § 10314. These allegations pay lip service, but do not satisfy, the requisite elements for an unjust enrichment claim. The benefit which Gary claims to have conferred on the defendants is nothing more than Gary’s performance of a promise to pay $450 in exchange for an employment letter. Assuming that such a transaction were rendered illegal by the application of section 10314(b), Gary may seek a contractual remedy, such as restitution.
See
6A Arthur L. Corbin,
Corbin on Contracts
§ 1535 (1962). Gary not only ignores the existence of this remedy; he also fails to allege that such remedy is inadequate. Therefore, Gary has failed to state a claim for unjust enrichment.
See Bowleg v. Bowe,
CONCLUSION
In accordance with the parties’ request, the Court has addressed, as a threshold issue, the availability of a private cause of action predicated on violations of 46 U.S.C. § 10314(b). The Court’s negative answer to this question has disposed of Gary’s claims for violation of, and for civil conspiracy to violate, section 10314(b). After examining Gary’s claims for common law conversion and for unjust enrichment, which are predicated on violations of the statute, the Court has further determined that these claims are legally insufficient. In light of these rulings, the Court did not need to reach the following additional grounds raised by the defendants in their motions: (1) Agustini’s motion to dismiss for insufficiency of service of process and for lack of personal jurisdiction; (2) Stellar and Hallmark’s motion to dismiss the prayers for punitive damages and attorney’s fees; (3) Stellar’s motion to dismiss for insufficiency of process and/or insufficiency of service of process; and (4) all three defendants’ challenge to the sufficiency of Gary’s pleading as a class action complaint, within the meaning of Fed.R.Civ.P. 23. Should Gary file an amended pleading, as permitted by this order, the Court shall entertain, upon proper motion, the arguments that are still applicable to the amended pleading.
Therefore, based on the foregoing considerations, it is hereby
ORDERED AND ADJUDGED that:
(1) Agustini’s motion to dismiss amended complaint is GRANTED IN PART.
(2) Stellar and Hallmark’s motion to dismiss the amended complaint is GRANTED IN PART.
(3) Counts I, II, and IV of the amended complaint are DISMISSED with prejudice.
(5) Gary has twenty days from the date of this order to file a second amended complaint. Failure to amend within the time allotted shall result in the dismissal of this action.
(6) Stellar and Hallmark’s alternative motion for a more definite statement is DENIED as moot.
(7) Agustini’s request for oral argument on its motion to dismiss is DENIED as moot.
(8) Gary’s joinder in Agustini’s request for oral argument is DENIED as moot.
DONE AND ORDERED.
Notes
. There is no Count III in the amended complaint.
. Although Hallmark and Stellar also cite Rule 12(b)(2) in support of their motion to dismiss, they do not raise any personal jurisdiction issues in the motion.
. Gary also argues that 46 U.S.C. § 11107 supports his claim. Section 11107 provides: "An engagement of a seaman contrary to a law of the United States is void. A seaman so engaged may leave the service of the vessel at any time, and is entitled to recover the highest rate of wages at the port from which the seaman was engaged or the amount agreed to be given the seaman at the time of engagement, whichever is higher.” 46 U.S.C.A. § 11107 (West Pamphlet 1994). According to Gary, "If the illegal engagement is void, the necessary corollary is that the seaman is entitled to his money back.” (Plaintiff’s Consolidated Memorandum in Opposition to Defendants' Motions to Dismiss Amended Complaint, at 10). In this action, however, Gary does not seek to declare his engagement void, nor does he seek wages for having left the service of the Regent Rainbow, as authorized by section 11107. Had Gary predicated his suit on section 11107, he might be justified in relying on that section to claim that he is "entitled to his money-back." Gary’s citation of section 11107 as supportive of an implied private action under section 10314(b), however, defies logic.
. Gary’s claim for relief under section 10314(b) partakes of the artlessness found in the plaintiff seaman’s claims in
Gilbert v. American Eagle Tanker Corp.,
. Section 10301 addresses the scope of Chapter 103, under which section 10314 falls. Section 10301 states:
(a)Except as otherwise specifically provided, this chapter applies to a vessel of the United States—
(1) on a voyage between a port in the United States and a port in a foreign country (except a port in Canada, Mexico, or the West Indies); or
(2) of at least 75 gross tons on a voyage between a port of the United States on the Atlantic Ocean and a port of the United States on the Pacific Ocean.
(b) This chapter does not apply to a vessel on which the seamen are entitled by custom or agreement to share in the profit or result of a voyage.
(c) Unless otherwise provided, this chapter does not apply to a foreign vessel.
46 U.S.C.A. § 10301 (West Pamphlet 1994).
Section 10314 applies to "a foreign vessel when in waters of the United States.” 46 U.S.C.A. § 10314(c) (West Pamphlet 1994).
. The pleading defect is also evident in Counts I and II of the amended complaint. The Court's dismissal of these counts with prejudice, however, renders the issue moot with respect to them.
