Latest news with #FederalArbitrationAct
Yahoo
5 days ago
- Entertainment
- Yahoo
Celebrity Cruises can't force arbitration of worker's sexual assault case, judge says
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Dive Brief: Celebrity Cruises, Inc. cannot compel arbitration in a former employee's sexual assault case, a federal judge ordered Monday in the U.S. District Court for the Southern District of Florida (Jane Doe (J.K.) v. Celebrity Cruises, Inc.). The plaintiff, who was working as a sommelier aboard the Celebrity Edge in October 2023, alleged that she joined co-workers at the staff bar after work, had two drinks and later woke up in the middle of being raped in a crewmember's cabin, according to court documents. After the worker filed a lawsuit, Celebrity moved to compel arbitration, pointing to arbitration provisions included in the worker's employment agreement. However, the plaintiff said that motion should be denied due to the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, per the order. Celebrity did not immediately respond to a request for comment. Dive Insight: The Federal Arbitration Act confers the right to include mandatory arbitration agreements in contracts. However, President Joe Biden signed the EFAA into law in March 2022; the law prohibits employers from forcing arbitration for sexual assault and sexual harassment, allowing those who make such allegations to file lawsuits and talk publicly about their experiences. Celebrity argued that the court shouldn't be able to decide if the case can be arbitrated under the EFAA because the employment agreement gives the initial question of arbitrability to an arbitrator. But the EFAA explicitly states that the applicability of the law to an agreement 'shall be determined by a court, rather than an arbitrator … irrespective of whether the agreement purports to delegate such determinations to an arbitrator,' Judge Rodolfo A. Ruiz II wrote in the order. Celebrity also argued that the plaintiff's claims didn't fall under the EFAA because they hadn't 'triggered the statute's scope' by alleging violation of a specific state, federal or tribal law that prohibits sexual assault. The court rejected that interpretation 'because it reaches beyond the statute's plain meaning and hinges on interpretations of EFAA provisions that are inapplicable to this case.' 'Congress wrote the EFAA to apply when a plaintiff alleges a sexual assault dispute, not, as Defendant submits, when a plaintiff pleads a specific sexual assault claim, let alone a violation of a law explicitly prohibiting sexual assault,' Ruiz II wrote. 'Congress specifically chose to refer to disputes rather than claims in the EFAA, and there is no indication that Congress limited the applicability of the EFAA to claims brought under 'qualifying statutes' that use magic words to summon the EFAA's applicability.' The judge highlighted another recent case against Celebrity, Bulic v. Celebrity Cruises, Inc., in which a cruise ship employee alleged she was sexually assaulted by the ship's restaurant manager. In that case, which Ruiz characterized as 'a case presenting almost identical facts as this action,' Celebrity also tried to compel arbitration, but the court denied the motion. Recommended Reading Class-action suit claims Nike failed to provide pumping breaks, lactation room
Reuters
27-01-2025
- Business
- Reuters
Citigroup wins appeal against military personnel over credit card rates
NEW YORK, Jan 27 (Reuters) - Citigroup (C.N), opens new tab can force military personnel to arbitrate claims that its Citibank unit charged unfairly high interest rates on their credit card balances after they returned to civilian life, a federal appeals court panel ruled on Monday. Reversing a trial judge, the 4th U.S. Circuit Court of Appeals in Richmond, Virginia, said Congress did not intend when adopting the Servicemembers Civil Relief Act (SCRA) to override a federal law providing enforcement of arbitration agreements. With roots dating to the Civil War, the act relieves military personnel of mortgage foreclosures, default judgments and other burdens while they serve their country. Four plaintiffs sought to pursue a class action against Citibank after it began charging civilian interest rates on card balances they accumulated during active duty, when rates were capped at 6%. One plaintiff, Army Sergeant Jeremy Bell, saw his rate jump to 25.99%, court records show. Circuit Judge Paul Niemeyer, however, wrote for the three-judge panel that because the SCRA was silent on arbitration, the Federal Arbitration Act required the plaintiffs to arbitrate disputes individually. The panel directed the North Carolina trial judge to review whether the federal Military Leave Act, which caps some rates and overrides arbitration agreements, applies to the plaintiffs' card accounts. Leah Nicholls, a lawyer at the nonprofit Public Justice representing the plaintiffs, said they may seek a rehearing. She said the decision conflicted with how the U.S. Supreme Court has assessed Congress' intent to displace arbitration agreements. "We are obviously disappointed," she said. Citigroup, based in New York, declined to comment. Class actions let groups of plaintiffs seek potentially higher recoveries at lower cost than if members arbitrated claims individually. A similar case is pending against American Express (AXP.N), opens new tab in the North Carolina court. It was put on hold until the appeals court could rule. In March 2023, the U.S. Department of Justice sided with the plaintiffs in both cases, saying the SCRA gave servicemembers an "unwaivable right" to pursue class actions even if they agreed to arbitrate. Consumer protection had been a focus of then-Democratic U.S. President Joe Biden's domestic agenda. The case is Espin et al v Citibank NA, 4th U.S. Circuit Court of Appeals, No. 23-2083.
