BARKETT, Circuit Judge:
Erikson Harrisson, a former seaman employee of NCL (Bahamas) Ltd. ("NCL"), was injured on the job and sued NCL in Florida state court claiming that NCL was negligent under the Jones Act, 46 U.S.C. § 30104,
Harrisson moves to dismiss NCL's appeal arguing that by concluding that the arbitration clause was null and void and thus no longer a basis for jurisdiction, the district court dismissed the case for lack of subject-matter jurisdiction. Therefore, Harrisson argues that pursuant to 28 U.S.C. § 1447(d) we are precluded from
In Thermtron Products, Inc. v. Hermansdorfer, the Supreme Court limited § 1447(d) to remands based on the grounds specified in 28 U.S.C. § 1447(c), which are a lack of subject-matter jurisdiction or a defect in the removal procedure. 423 U.S. 336, 342-44, 96 S.Ct. 584, 46 L.Ed.2d 542 (1976); 28 U.S.C. § 1447(c), (d).
NCL argues that § 1447(d) does not apply because we should construe the remand as based on the district court's interpretation of a contract clause and not on based on the district court lacking subject-matter jurisdiction. Alternatively, NCL argues that even if § 1447(d) applies, we can review the denial of the motion to compel arbitration based on exceptions to the rule of § 1447(d).
Section 1447(d) generally prevents an appellate court from reviewing a district court's order remanding a case back to state court for a lack of subject-matter jurisdiction, "even if the district court's decision is clearly erroneous." New v. Sports & Recreation, Inc., 114 F.3d 1092, 1096 (11th Cir.1997); see also Kircher v. Putnam Funds Trust, 547 U.S. 633, 642, 126 S.Ct. 2145, 165 L.Ed.2d 92 (2006) (same). Likewise, 28 U.S.C. § 1447(d) also generally bars our review of the district court's determinations related to a remand based on a lack of jurisdiction, because upon determining a lack of jurisdiction, the district court "has no jurisdiction to touch the case on the merits." Kircher, 547 U.S. at 644, 126 S.Ct. 2145.
However, the parties focus on two exceptions to this statutory bar. First, we are permitted to review a remand order that is based on grounds other than a lack of jurisdiction or a defect in the removal procedure. Thermtron, 423 U.S. at 342-44, 96 S.Ct. 584; see also Sammie Bonner Const. Co., Inc. v. Western Star Trucks Sales, Inc., 330 F.3d 1308, 1311-12 (11th Cir.2003). Second, we may review orders "that lead to, but are separate from, orders of remand and have a conclusive effect upon the ensuing state court action." Aquamar S.A. v. Del Monte Fresh Produce, 179 F.3d 1279, 1286 (11th Cir.1999).
Relying on Snapper, Inc. v. Redan, NCL argues that this case falls under the
Even if we find that the district court remanded for a lack of jurisdiction, NCL contends that the remand is separate from the denial of the motion to compel arbitration and that we can review the denial, pursuant to City of Waco v. United States Fidelity & Guaranty Co., 293 U.S. 140, 143-44, 55 S.Ct. 6, 79 L.Ed. 244 (1934). Under Waco, courts may review an interlocutory appeal of an order that is considered (1) "separable" from the remand order, and (2) has a "conclusive effect" upon the subsequent court action. Aquamar, 179 F.3d at 1286; see also Waco, 293 U.S. at 143-44, 55 S.Ct. 6 (permitting appellate review of a dismissal of a cross-complaint that preceded a remand based on a lack of diversity jurisdiction).
We find the order not to be "conclusive" under Waco. An order is conclusive pursuant to Waco only if it will be "functionally unreviewable in the state court, and it changes the contours of the state court action after remand." Hernandez, 334 F.3d at 1241 (internal quotations and citations omitted). Under similar facts to those before us, the Fifth Circuit in Dahiya v. Talmidge International, Ltd. held
Here, the district court's analysis of the arbitration clause was limited to the question of whether the clause was valid for purposes of subject matter jurisdiction. The denial of the motion to compel arbitration does not preclude the state court from reconsidering that question de novo and freely determining whether the arbitration clause is valid. See id. at 647, 126 S.Ct. 2145 (noting that state courts are "perfectly free to reject the remanding court's reasoning"); In re Loudermilch, 158 F.3d at 1146 (same); see also City of Oldsmar v. State, 790 So.2d 1042, 1046 n. 4 (Fla. 2001) (noting that, under Florida law, collateral estoppel applies only when a matter has been "fully litigated and determined in a contest that results in a final decision of a court of competent jurisdiction").
For the foregoing reasons, we grant Harrisson's motion to dismiss NCL's appeal for lack of jurisdiction.
HILL, Circuit Judge, dissenting:
I dissent.
I disagree with the majority decision to dismiss this appeal for lack of jurisdiction.
We have appellate jurisdiction to review the district court's order denying NCL's motion to compel arbitration under the Convention. That part of the order is immediately appealable under 9 U.S.C. § 16(a)(1)(C), and made applicable to the Convention by 9 U.S.C. § 208.
Here the district court erred in refusing to order arbitration. Its substantive finding that NCL's agreement to arbitrate was unenforceable was based upon Thomas v. Carnival Corp., 573 F.3d 1113 (11th Cir. 2009). Subsequently, this court, in Lindo
The district court's remand order was based upon its interpretation of the meaning of a choice-of-law or forum selection clause; this is a reviewable decision, external to the removal process. See Snapper Inc. v. Redan, 171 F.3d 1249, 1252-53 (11th Cir.1999); Cunningham v. Fleetwood Homes of Ga., 253 F.3d 611, 617 (11th Cir.2001) ("[a]greements to arbitrate are essentially forum-selection clauses"); Pelleport Investors, Inc. v. Budco Quality Theatres, Inc., 741 F.2d 273, 276-77 (9th Cir.1984); see also 28 U.S.C. § 1447(c) and (d).
The majority erroneously finds that "the district court's analysis of the arbitration clause was limited to the question of whether the clause was valid for purposes of subject matter jurisdiction." Here the district court clearly conducted two distinct substantive analyses: (1) that the arbitration provision was null and void as against public policy; and that, therefore, (2) remand was proper.
The majority result
I am very concerned with the result achieved today. It has far reaching consequences. The majority interpretation undermines Congress's clear intent to allow for immediate review from orders denying arbitration. See 9 U.S.C. §§ 16(a)(1)(C); 208.
I dissent.
As well, 9 U.S.C. § 203 provides federal district courts with original jurisdiction over actions that fall under the Convention.
Additionally, the parties do not dispute that Harrisson's Jones Act claim does not, by itself, permit removal to federal court. See Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 455, 121 S.Ct. 993, 148 L.Ed.2d 931 (2001) (Jones Act claim was not subject to removal to federal court).
Our holding that the district court's findings regarding the arbitration agreement are not "conclusive" does not, as the dissent contends, "rationalize away" federal appellate review of the district court's decisions under the Waco doctrine. Rather, Waco requires our court to first determine whether the district court decisions are "conclusive." See Waco, 293 U.S. at 143, 55 S.Ct. 6.
And § 1447(d) bars our review, even if our court may disagree with the district court's findings or if such findings involved the merits of federal questions. See Kircher, 547 U.S. at 640, 126 S.Ct. 2145 ("we have relentlessly repeated that any remand order issued on [a lack of subject-matter jurisdiction] grounds... is immunized from all forms of appellate review, whether or not that order might be deemed erroneous by an appellate court."); see also id. at 647-48, 126 S.Ct. 2145 (holding that § 1447(d) barred appellate review of district court's finding, preceding a remand, that federal law did not preclude a state securities lawsuit and state courts upon remand were free to revisit "the merits of [this] federal question").