Case Information
*3 Before TJOFLAT, PRYOR and RIPPLE, Circuit Judges. [*]
TJOFLAT, Circuit Judge:
I.
A.
In Lobo v. Celebrity Cruises, Inc. (“Lobo I”),
The cabin steward was Inacio Lobo. After his case was submitted to arbitration, Lobo became dissatisfied with the representation his union, Federazione Italianan Transporti (“FIT”), was providing him; so he returned to the District Court—this time with a class action against the union and the cruise line [2]
under § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185, asserting both hybrid and non-hybrid claims for the tips he and other cabin [3]
stewards had not received. Lobo v. Celebrity Cruises, Inc. (“Lobo II”), No. 08- [4]
23386 (S.D. Fl. 2008). His hybrid claim against his employer, Celebrity Cruises, Inc. (“Celebrity”), was that it breached the wage provisions of the collective bargaining agreement (“CBA”) it had with FIT. His hybrid claim against FIT was that it breached the duty of fair representation it owed him under § 9(a) of the National Labor Relations Act (“NLRA”), 29 U.S.C. § 159. Lobo’s non-hybrid claim was lodged against FIT; it replicated the § 9(a) allegations of the hybrid claim.
Lobo and the members of the putative class were citizens and residents of
India. FIT is an Italian union. Celebrity is a Liberian corporation; its cruise ships
are registered in the Bahamas. The defendants, citing Benz v. Compania Naviera
Hidalgo, S.A.,
B.
After perfecting service of process on FIT, Lobo filed an amended complaint against FIT alone. He reasserted a non-hybrid breach of fair representation claim under § 9(a) as well as under federal common law. He also added a state law claim for breach of a duty of “good faith and fair deаling.” FIT moved the District Court to dismiss the amended complaint under Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction. On July 7, 2010, the court granted the motion. In its view, since the non-hybrid claim could not be brought under the LMRA and the NLRA, the court lacked the subject matter jurisdiction needed to entertain the amended complaint. On July 8, 2010, the District Court, in conformance with its orders of September 10, 2009, and July 7, 2010, entered final judgment in favor of Celebrity and FIT.
C.
While Lobo II was pending in the District Court, John Gomez and nine of the cabin stewards named in that case brought a class action against Celebrity under the Seaman’s Wage Act, seeking damages in the amount of the tips Celebrity had allegedly withheld. Gomez v. Celebrity Cruises, Inc., No. 09-22991 (S.D. Fl. 2009). Rather than invoking the arbitration provision of the CBA, [7]
Celebrity moved the court to dismiss the case under the doctrine of res judicata. Celebrity argued that the plaintiffs should have, but did not, assert their Seaman’s Wage Act claim in Lobo II. The District Court agreed and on December 23, 2009, dismissed the case with prejudice. [8]
Gomez and the nine other cabin stewards who had joined him in Lobo II and Gomez (the “Stewards”) appealed the District Court’s judgments in both cases, Appeal Nos. 10-13623 and 10-10406, respectively. We address the appeals separately, beginning with Lobo II.
II.
A.
The hybrid claims in Lobo II were dismissed under Rule 12(b)(6) for failure
to state a claim. We review Rule 12(b)(6) dismissals de novo, accepting the
allegations in the complaint as true and construing them in the light most favorable
to the plaintiff. Hill v. White,
The District Court dismissed the Stewards’ hybrid claims against Celebrity and FIT after determining that the Supreme Court’s decisions in Benz and McCulloch foreclosed the application of the LMRA and the NLRA to wage disputes between foreign ships and foreign seamen. We agree.
It is well-settled that these statutes do not apply to wholly-foreign disputes.
In Benz, the Supreme Court concluded that “Congress did not fashion [the LMRA]
to resolve labor disputes between nationals of other countries operating ships
under foreign laws. The whole background of the Act is concerned with industrial
strife between American employers and employees.”
We need not labor long to determine whether a wage dispute between a
foreign-flag vessel and its foreign crew falls within the internal affairs of a ship.
Benz and McCulloch have plainly answered that question. See Benz,
Here, the Stewards are engaged in a wage dispute with their employer, Celebrity, and their labor union, FIT. All parties in this dispute are foreign. The holdings of Benz and McCulloch control.
The Stewards contend that Benz is inapplicable. They attempt to
distinguish the case by noting that Benz concerned the picketing of ships, whereas
the Stewards’ claim concerns a contractual breach over wages. The seamen in
Benz, however, were picketing because they “demanded that their term of service
be reduced, their wages be increased, and more favorable conditions of
employment be granted.”
The Stewards next argue that, even if Benz is on point, it was implicitly
overruled by Hellenic Lines, Ltd. v. Rhoditis,
The Stewards claim that, even if Benz and McCulloch control, the internal
affairs of Celebrity’s ships would not be disrupted were we to apply the LMRA
and the NLRA to this dispute. They argue that apрlying these statutes would
merely compel the paying of wages, not affect the “movement and functioning” of
the ships. This argument misapprehends the internal affairs inquiry. Federal
courts are not charged with predicting the operational consequences of applying
these statutes on a case-by-case basis. Nor have the Stewards presented support
suggesting otherwise. To adopt this reasoning would lead to the kind of inquiry
into the “internal order and discipline” that McCulloch concluded would be
“entirely infeasible in actual practice.”
This canon is rooted in a general concern for international comity. Nevertheless, the Stewards argue that this canon should be applied on a case-by- cases basis and not under these facts. They argue that, unlike in McCulloch where Honduras had a strong interest in applying its laws to Honduran citizens, the Bahamas has no interest in applying its labor laws hеre because the Stewards are citizens of India, not the Bahamas.
A case-specific inquiry into the effect on international relations is not
permitted. Though the McCulloch court had occasion to illustrate how the
application of these statutes could readily arouse international discord, see 372
U.S. at 21,
Lastly, the Stewards contend that § 301 of the LMRA is coextensive with
the remedies under the Seaman’s Wage Act, which expressly permits foreign
seamen to bring suit against foreign ships. The Stewards base this argument on
U.S. Bulk Carriers, Inc. v. Arguelles,
B.
Next, we address the District Court’s decision to dismiss the Stewards’ non-
hybrid claims under Rule 12(b)(1). We review dismissal for lack of subject matter
jurisdiction de novo. Sinaltrainal v. Coca-Cola Co.,
Nevertheless, we affirm the dismissal of the fair reprеsentation claim under Rule 12(b)(6) for failure to state a claim. See Lucas v. W.W. Grainger, Inc., 257 F.3d 1249, 1256 (11th Cir. 2001) (“[W]e may affirm [the District Court’s] judgment on any ground that finds support in the record.”) (internal quotation marks omitted).
The Stewards contend that even if the hybrid mechanism of § 301 of the
LMRA is inapplicable, they can still maintain a non-hybrid claim against FIT
under § 9(a) of the NLRA. They argue that our precedent dictates that the NLRA
applies when a foreign union engages in wrongful conduct through its agents
within the United States. To support this contention, the Stewards look to our
decision in Dowd v. Int’l Longshoremen’s Assoc., AFL-CIO,
F.2d at 788 (“[T]he NLRA does not regulate the practices of owners of foreign vessels which are temporarily present in an American port with regard to foreign employees working on these vessels.”). The Stewards have failed to identify a source for the duty of fair representation other than the NLRA. Because the NLRA does not apply when its application would only concern the internal affairs of a foreign vessel, the Stewards cannot bring a fair representation claim under it here.
III.
We now move to Gomez. The doctrine of res judicata, or claim preclusion,
bars the parties to an action from litigating claims that were or could have been litigated in a prior action between the same parties. Jaffree v. Wallace, 837 F.2d 1461, 1466 (11th Cir. 1988). The party asserting claim preclusion as a defense must establish four elements: (1) the prior decision must have been rendered by a court of competent jurisdiction; (2) there must have been a final judgment on the merits; (3) both cases must involve the same parties or their privies; and (4) both cases must involve the same causes of action. In re Piper Aircraft Corp., 244 F.3d 1289, 1296 (11th Cir. 2001). We review a claim preclusion decision de novo. Id. at 1295.
The question before us is whether the dismissal of the LMRA claim in Lobo II precluded the Stewards from bringing a claim under the Seaman’s Wage Act in Gomez. The parties agree that the District Court exercised competent jurisdiction and that the actions involve the same parties. The parties dispute whether the District Court’s order dismissing the LMRA claim was a final judgment on the merits and whether the cases share the same cause of action.
A.
We agree with the Stewards that the District Court’s September 10, 2009, order dismissing the LMRA claims in Lobo II was not a final judgment. Although
the Stewards appealed that order, we dismissed the appeal for lack of jurisdiction
because the order was not final or immediately appealable. This order was not
claim preclusive. See First Ala. Bank, N.A. v. Parsons Steel, Inc.,
1480 n.5 (11th Cir. 1987) (“Nonappealable interlocutory orders are not entitled to collateral estoppel or res judicata effect.”) Nevertheless, we take judicial notice of the District Court’s entry of judgment on July 8, 2010, in Lobo II. This judgment rendered the September 10, 2009, dismissal final.
We also conclude that the September 10, 2009, order was an adjudication on
the merits because the order was a Rule 12(b)(6) dismissal with prejudice. Hall v.
Tower Land & Inv. Co.,
B.
Next, the parties dispute whether the cause of action in Gomez is the same
as the one in Lobo II. A cause of action is the same for res judicata purposes if it
“arises out of the same nucleus of operative fact, or is based upon the sаme factual
predicate, as a former action.” Piper,
The test for a common nucleus of operative fact is “whether the same facts
are involved in both cases, so that the present claim could have been effectively
litigated with the prior one.” Piper,
IV.
We affirm the District Court in Appeal No. 10-13623. Because the Stewards are foreign employees involved in an internal wagе dispute with a foreign ship, neither the LMRA nor the NLRA apply to the Stewards’ challenges. Since their claims are dependant upon the protections of those acts, the District Court properly dismissed their claims against Celebrity and FIT in Lobo II. We affirm the District Court in Appeal No. 10-10406. Because the Stewards could have raised their Seaman’s Wage Act claim in Lobo II but did not, we affirm the District Court’s order in Gomez to dismiss the claim as barred by the
doctrine of res judicata.
AFFIRMED
Notes
[*] Honorable Kenneth F. Ripple, United States Circuit Judge for the Seventh Circuit, sitting by designation.
[1] Lobo I was brought as а class action, but the plaintiff did not seek class certification.
[2] As in Lobo I, the plaintiff did not seek class certification.
[3] Lobo’s complaint invoked the District Court’s subject matter jurisdiction under 28 U.S.C. § 1331 (federal question) and 28 U.S.C. § 1333 (admiralty).
[4] A hybrid claim is a suit in which a plaintiff may simultaneously assert a claim against
his employer and a claim against his union. This type of claim supersedes the Convention and
permits a suit in federal court. See DelCostello v. Int’l Brotherhood of Teamsters,
[5] This claim arises under federal common law. See Marquez v. Screen Actors Guild, Inc.,
[6] Lobo brought the state law claim under the District Court’s supplemental jurisdiction, 28 U.S.C. § 1367. The CBA contained a provision stating that the agreement was to be construed under Florida law. The amended complaint alleged that parties to a contract are obligated to deal with one another in good faith and fairly.
[7] Inacio Lоbo was not included as a named plaintiff because he and Celebrity had settled the claim he had brought in Lobo I and, again, in Lobo II.
[8] The court did so without having first certified the plaintiffs’ class.
[9] The LMRA was actually a series of amendments to the NLRA. Because the implied duty of fair representation has been found under § 9(a) of the original NLRA, and the vehicle to bring a hybrid claim has been found under the later addition of § 301 of the LMRA, we join the parties and the District Court in distinguishing between the acts.
[10] The Stewards raise the argument that the presumption against extraterritorial application should not apply here. This contention is inapposite. The question of applicability turns on the identity of parties, not whether their conduct occurred within United States territory.
[11] These amendments would have extended the Seaman’s Wage Act to advance payments
given to foreign seaman by foreign vessels. See Benz,
[12] The Stewards’ have also presented plain meaning and legislative purpose arguments.
They are foreclosed by Benz and McCulloch. Benz,
[13] Though the District Court had jurisdiction to hear the fair representation claim, this
does not revive the Stewards’ state law claim for breach of good faith and fair dealing. The
District Court indicated that even if it if had original jurisdiction it would decline to exercise
supplеmental jurisdiction over the Stewards’ state law claim. We need not disturb this
disposition. See Raney v. Allstate Ins. Co.,
[14] Celebrity correctly observes that the categories of appealable orders and orders entitled to preclusive effect do not always overlap. Yet the differences between the two arise not because some preclusive orders are non-final, but becausе some non-preclusive orders are nevertheless appealable. See, e.g., 18 Moore’s Federal Practice - Civil § 131.30[2][c][i] (3d ed. 2010) (“The Supreme Court has construed the term ‘final decision’ to embrace some collateral orders the effect of which cannot be rectified on appeal from final judgment. Furthermore, 28 U.S.C. § 1292 provides for appeals of certain interlocutory orders. Even though such matters are ‘appealable,’ they could not be the basis for claim preclusion.” (footnotes omitted)). 9 U.S.C. § 16(a)(1) is particularly on point: interlocutory orders denying a motion to compel arbitration are generally appealable.
[15] The Stewards also argue that the District Court’s dismissal of the claim against Celebrity in Lobo II was “purely a dismissal for lack of subject matter jurisdiction”—and thus lacks claim-preclusive effect. In its September 10, 2009 order, the District Court dismissed the Stewards’ hybrid claim against Celebrity for failure to state a claim, not for lack of subject matter jurisdiction. The Stewards’ characterization of the District Court’s September 10, 2009, order is meritless.
