JOSEPH H. RODRIGUEZ, District Judge.
This case comes before the Court on Defendants' Motions to Dismiss or Stay Plaintiff's Action and Compel Arbitration. [Dkt. Nos. 8,9]. The Court has considered the written submissions of the parties, as well as the arguments advanced at the hearing on September 30, 2019. For the Reasons that follow the Court grants Defendant, Atlantic Cape Fisheries', Motion to Dismiss Plaintiff's complaint against it.
The Court finds that questions of fact and credibility pertaining to the enforceability of the Arbitration Clause at issue preclude a determination on Defendants', F/V Atlantic Bounty, LLC and Sea Harvest, Inc., Motion to Compel Arbitration. The pertinent issue to be decided is whether Plaintiff knowingly and willingly signed an Agreement containing the relevant Arbitration Clause. The Court will hold an evidentiary hearing on the matter and dismiss the Motion without prejudice.
Plaintiff filed a Complaint with this Court on May 3, 2018 against Atlantic Cape Fisheries, Inc. and F/V Atlantic Bounty, LLC. On June 21, 2018 Plaintiff amended his complaint, adding Sea Harvest, Inc. as a Defendant in this matter. Plaintiff's Amended Complaint asserts claims for Jones Act Negligence (Count I), Unseaworthiness (Count II), and Maintenance and Cure (Count II). [Dkt. No. 5]. The basis of Plaintiff's seaman claims stem from events occurring on August 28, 2017. Specifically, Plaintiff claims that while in navigable waters, he slipped and fell on the "centerline stopper midship, twisting his back and causing serious injuries" in the course of his employment on Atlantic Bounty (the "Vessel"). Compl. at ¶¶ 28-31
According to Plaintiff's Amended Complaint, he was an employee of Sea Harvest, Atlantic Cape, and F/V Atlantic Bounty "as a member of the crew of the vessel."
In response to Plaintiff's Complaint, Defendants F/V Atlantic Bounty and Sea Harvest filed a Motion to Dismiss or Stay Plaintiff's Action and Compel Arbitration pursuant to an arbitration clause contained in Plaintiff's employment contract, which Defendants argue is valid and enforceable against him. [Dkt. No. 8]. Defendant Atlantic Cape moved to Dismiss or Stay Plaintiff's Action and Compel Arbitration separately. [Dkt. No. 9]. Atlantic Cape argues that Plaintiff's action should be dismissed against it because it is not a proper defendant in this case; in the alternative, it seeks dismissal or stay of the action pending arbitration pursuant to the same arbitration policy. Each of the motions have been fully briefed, and the Court heard Oral Argument on September 30, 2019.
Federal Rule of Civil Procedure 12(b)(6) allows a party to move for dismissal of a claim based on "failure to state a claim upon which relief can be granted." Fed. R. Civ. P. 12(b)(6). A complaint should be dismissed pursuant to Rule 12(b)(6) if the alleged facts, taken as true, fail to state a claim. Fed. R. Civ. P. 12(b)(6). When deciding a motion to dismiss pursuant to Rule 12(b)(6), ordinarily only the allegations in the complaint, matters of public record, orders, and exhibits attached to the complaint, are taken into consideration.
"A claim has facial plausibility
The Court need not accept "`unsupported conclusions and unwarranted inferences,'"
Thus, a motion to dismiss should be granted unless the plaintiff's factual allegations are "enough to raise a right to relief above the speculative level on the assumption that all of the complaint's allegations are true (even if doubtful in fact)."
Atlantic Cape Fisheries ("Atlantic Cape") argues that it should be dismissed from this action because it is not the owner or operator of the Vessel, nor Plaintiff's employer; and therefore, it is not subject to liability under any of Plaintiff's claims. The Court Agrees.
Plaintiff's first claim seeks to recover for his injury under the Jones Act. "The Jones Act provides seamen a suit for damages against
Plaintiff's remaining two claims are for Maintenance and Cure and Unseaworthiness. Under settled maritime law, the vessel, her owner, and/or operator are liable to a seaman who claims injuries "in consequence of the unseaworthiness of the ship, or a failure to supply and keep in order the proper appliances appurtenant to the ship."
Though Plaintiff's Amended Complaint concludes that Atlantic Cape is the owner and operator of the Vessel that Plaintiff was employed on, Atlantic Cape provides documentation to the contrary.
In fact, Sea Harvest refers to itself as the operator of the Vessel. [Dkt. No. 8, Def. Brf. at 1]. Furthermore, as previously mentioned, Plaintiff's Employment Agreement (or the "Manifest") specifically names Sea Harvest as Vessel Operator, with no mention of Atlantic Cape. As such, Plaintiff cannot sustain a claim against the Defendant Atlantic Cape Fisheries for Unseaworthiness (Count II) or Maintenance and Cure (Count III). Because Atlantic Cape was not Plaintiff's employer or the owner/operator of the Vessel, Atlantic Cape cannot be liable to Plaintiff on any of its three seaman claims. Thus, the Court dismisses Atlantic Cape Fisheries as a Defendant in this matter and grants Defendant's Motion to Dismiss. [Dkt. No. 9].
As to the first consideration, a district court "must initially decide whether the determination is made under [Federal Rule of Civil Procedure] 12(b)(6) or 56."
The Rule 56 standard is appropriate where: (1) "`the motion to compel arbitration does not have as its predicate a complaint with the requisite clarity' to establish on its face that the parties agreed to arbitrate," or (2) "the opposing party has come forth with reliable evidence that is more than a `naked assertion . . . that it did not intend to be bound' by the arbitration agreement, even though on the face of the pleadings it appears that it did."
In this case, the existence of an agreement to arbitrate is not apparent from the face of Plaintiff's Complaint, which does not mention an Arbitration Policy or attach the Arbitration Policy as an exhibit. Instead, Defendants' Motion to Compel Arbitration relies exclusively on matters outside the pleadings. Accordingly, the Rule 56 standard governs. The Defendants move to enforce the agreement and compel arbitration. Plaintiff argues that (1) that the Agreement in unenforceable because there was no meeting of the minds or, alternatively (2) the Agreement is unenforceable as a matter of federal law. For the reasons stated below, an evidentiary hearing is required on the issue of whether there was a meeting of the minds and therefore, the Court will not determine whether the Agreement is enforceable against Plaintiff as a matter of law.
First, Plaintiff explicitly contests the Arbitration Policy's existence and further denies the authenticity of the "Manifest" provided by Defendant, between Plaintiff and Sea Harvest. He claims that the Arbitration clause contained therein was never presented to him and that he did not agree to its terms. Plaintiff has provided a certification wherein he also claims that he has never even seen the third page of the Manifest, which contains the relevant clause. Indeed, Plaintiff suggests this entire page contain the clause may have never been included in the Manifest before. To support such an allegation, Plaintiff points to the mis-numbered paragraph of the Arbitration clause. The Arbitration clause is contained in paragraph number 11, which is incorrect because the preceding paragraph is number 12. [Dkt. No. 16-5]. Plaintiff also suggests that the page containing the clause looks different compared to the other pages of the document, thus appears as though it does not belong.
At this stage, the record does not conclusively show whether Plaintiff, in fact, agreed to the Arbitration Clause that Defendants seek to enforce; and furthermore, it lacks sufficient information to determine the enforceability of the arbitration agreement. The Court finds that the information that has been presented, create disputes of fact regarding the Arbitration Clause and issues of credibility. Therefore, the Court will hold an evidentiary hearing to determine whether the Plaintiff agreed to arbitrate his current claims.
This Court finds Atlantic Cape Fisheries is not a proper Defendant in this action and further finds that issues of fact as to whether the parties entered into a valid arbitration agreement require an evidentiary hearing.
An appropriate Order shall issue.