## Facts

- Romeo Balen, a Filipino citizen, worked as a beverage attendant for Holland America Line Inc. (HAL) under an employment arrangement governed by Philippine Overseas Employment Administration (POEA) rules.
- POEA-approved employment contracts incorporated the Standard Terms and Conditions for Filipino seafarers, including provisions addressing employer-paid travel and dispute resolution.
- HAL maintained a gratuity plan guaranteeing minimum gratuities while requiring employees to reimburse certain travel-related expenses.
- HAL discharged Balen after he allegedly failed to reimburse the required travel expenses.
- Balen sued HAL in federal court alleging breach of contract and violations of the Seamen’s Wage Act, 46 U.S.C. § 10313, based on wage-related deductions and his discharge.
- The POEA Standard Terms required that employment-related disputes for seafarers covered by a collective bargaining agreement (CBA) be submitted to the “original and exclusive jurisdiction” of a voluntary arbitrator or panel of arbitrators.
- Balen was covered by a CBA between his union and his employer, and the CBA contained an arbitration agreement.

## Issues

1. Whether claims under the Seamen’s Wage Act, 46 U.S.C. § 10313, are subject to arbitration under the New York Convention and its implementing legislation.
2. Whether Balen was bound by a valid written arbitration agreement (through the POEA Standard Terms and CBA) covering his wage-related claims against HAL.

## Decision

- The Ninth Circuit affirmed the order compelling arbitration and dismissing the federal court action.
- The court held that Seamen’s Wage Act claims are arbitrable under the New York Convention.
- The court held that a valid written arbitration agreement existed and applied to Balen’s claims because the POEA Standard Terms and the CBA required arbitration of disputes arising from employment.
- The court found no congressional command in the Wage Act precluding arbitration and no Convention-based defense justifying refusal to enforce the arbitration agreement.

## Legal Principles

- The New York Convention requires enforcement of written international arbitration agreements arising out of commercial legal relationships, as implemented in 9 U.S.C. §§ 201–208.
- Statutory claims are generally arbitrable absent a contrary congressional command shown in statutory text, legislative history, or an inherent conflict between arbitration and the statute’s purposes.
- Protective federal statutes providing remedies do not, without more, create an exclusive judicial forum or bar arbitration.
- An arbitration clause covering disputes “arising from employment” is construed broadly to include wage, deduction, and related contract disputes connected to the employment relationship.
- A party resisting Convention arbitration must establish a recognized basis to deny enforcement; absent such grounds, courts must compel arbitration.

## Conclusion

The Ninth Circuit required arbitration of a Filipino seaman’s Seamen’s Wage Act and contract claims because the POEA Standard Terms and an applicable CBA created a written arbitration agreement enforceable under the New York Convention, and the Wage Act did not clearly preclude arbitral resolution.


Balen v. Holland Am. Line Inc., 583 F.3d 647 (9th Cir. 2009)