Schreiber v. K-Sea Transportation Corp.
Nicholas Schreiber, a seaman employed by K-Sea Transportation, sustained injuries. After receiving maintenance and medical expenses, he agreed to K-Sea's arbitration program for further claims in exchange for advance wages. Following a deterioration of his condition and additional surgeries, Schreiber sued K-Sea under the Jones Act. K-Sea initiated arbitration, but Schreiber sought to stay it due to the substantial filing fees and his claim of being unaware of his rights. The Supreme Court granted a permanent stay, deeming the agreement unconscionable and a waiver of jury trial rights. This appellate court reversed, finding the agreement was not a release and the financial burden was speculative. The case was remanded to the Supreme Court for a hearing to determine if Schreiber's waiver of Jones Act rights and agreement to arbitrate was freely and knowingly entered into, considering his status as a ward of admiralty.