Aggarao v. MOL Ship Management Company

Potenciano Aggarao, a citizen of the Philippines (plaintiff) was employed by MOL Ship Management Company (MOL). Potenciano suffered injuries on the job aboard one of the vessels owned by MOL and subsequently filed a lawsuit in federal district court against MOL, Nissan Motor Car Carrier Co., Ltd., and World Car Carriers (collectively, the maritime operators) claiming unseaworthiness and negligence and seeking unpaid wages, lost future wages, and maintenance and cure. The lawsuit was dismissed, and Potenciano was instructed by the dismissing court to initiate arbitration proceedings in the Philippines within 60 days, which he did. The arbitration agreement applicable in Potenciano’s dispute with the maritime operators provided that Philippine law would apply in the arbitration. After a hearing, the arbitrator rendered a decision in favor of the maritime operators applying Philippine law. Potenciano filed a motion to vacate the decision, and the maritime operators cross-filed to affirm the decision. Potenciano argued in his motion to vacate that the arbitrator’s decision to apply Philippine law deprived him of the opportunity to vindicate his rights under U.S. maritime law and therefore denied him adequate remedy. He further argued that the arbitrator’s failure to address his rights under U.S. maritime law empowered the court to refuse to recognize and enforce the arbitration award as violative of U.S. public policy.