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The efforts of big business to push disputes into binding
arbitration took a surprising turn recently when the Ninth Circuit Court of
Appeals recently ruled that the federal courts do not have the power under
the Federal Arbitration Act to reduce or annul an arbitration panel's award
because the court feels that the award was too high. In the insurance bad
faith case of Lagstein v. Certain Underwriters at Lloyd's of London
, Case No. 07-16094 (9th Cir., June 10, 2010), an
arbitration panel awarded roughly $2 million in compensatory damages and $4
million in punitive damages to Dr. Lagstein for the wrongful denials of his
disability insurance claims. The Ninth Circuit ruled that a District Court
judge did not have the power to vacate the arbitration award.
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JONES ACT- TABLE OF CONTENTS
The Jones Act
I. IN GENERAL -> C. Applicability to Foreign Ships, Seamen, and Occurrences -> 3. Nationality or Ownership of Vessel -> a. In General
55. Law of the flag
If law of flag is to control in action under 46 USCS Appx § 688, flag must not be one merely of convenience but should be bona fide. Southern Cross S.S. Co. v Firipis (1960, CA4 Va) 285 F2d 651, 84 ALR2d 895, cert den 365 US 869, 5 L Ed 2d 859, 81 S Ct 903 and (disagreed with Swain v Isthmian Lines, Inc. (CA3 Pa) 360 F2d 81 (disagreed with Chung, Yong Il v Overseas Navigation Co. (CA11 Ala) 774 F2d 1043, reh den, en banc (CA11 Ala) 779 F2d 60 and reh den, en banc (CA11 Ala) 779 F2d 60 and cert den (US) 90 L Ed 2d 346, 106 S Ct 1802)) and (disapproved on other grounds Griffin v Oceanic Contractors, Inc., 458 US 564, 73 L Ed 2d 973, 102 S Ct 3245, on remand (CA5 Tex) 685 F2d 139).
Law of flag would not be accorded controlling weight in determining 46 USCS Appx § 688 jurisdiction where vessel involved was drilling rig and not commercial sailing vessel. Phillips v Amoco Trinidad Oil Co. (1980, CA9 Cal) 632 F2d 82, cert den 451 US 920, 68 L Ed 2d 312, 101 S Ct 1999.
In case of injury to American seaman, occurring on foreign vessel on high seas, existence and nature of cause of action for alleged wrong is governed by law of country under which vessel is registered. The Oriskany (1933, DC Md) 3 F Supp 805.
One who engages to serve on board foreign ship necessarily undertakes to be bound by law of country to which ship belongs; jurisdiction of laws of flag nation accompany vessel not only over high seas but everywhere else it may be waterborne. Radovcic v The Princ Pavle (1942, DC NY) 45 F Supp 15.
JONES ACT- TABLE OF CONTENTS
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1999-2005 by William H. Lawson.