11th Circuit Court of Appeals Refuses to Compel Arbitration for Public Policy Reasons
In Thomas v. Carnival Corp., 573 F.3d 1113 (11th Cir. 2009) , the US Court of Appeals for the Eleventh Circuit reversed and remanded a trial court decision that determined that plaintiff’s statutory claim under the Seaman’s Wage Act was subject to the arbitration clause in the relevant employment contact. This case concluded that a prospective bar on the claimant’s ability to make use of statutorily created benefits was a violation of public policy. This expansive view of the use of “public policy” to avoid compelling arbitration may signal a shift in judicial thinking on the enforceability of arbitration agreements, which have traditionally been upheld except in very narrow circumstances.
Read the entire ruling here.