A decades-old case will be heard by the U.S. Supreme Court this week, potentially allowing thousands of Americans to seek compensation from companies that currently use or profit from property confiscated by the Cuban government decades ago.
As tensions between the United States and Cuba continue escalating as a result of ongoing sanctions and oil blockades to the island by the Trump administration, the Supreme Court will listen to claims on the case involving Havana Docks, which is suing major cruise lines Carnival, Royal Caribbean, Norwegian and MSC for docking ships at port facilities that were confiscated from the company.
The cases stem from a provision in the 1996 Helms-Burton Act known as Title III, which allows Americans to sue entities that "traffic" in property taken by Cuba. Although the law has been on the books for more than 25 years, the Supreme Court has never interpreted it.
As reported by the New York Times, Royal Caribbean Cruises, Norwegian Cruise Line Holdings and Carnival Corp. argued in court filings that they cannot be held liable because of the chronology of events. Between 2015 and 2019, the cruise lines paid entities connected to the Cuban government at least $130 million to use the port facilities, according to court records cited by the outlet.
Havana Docks built, owned and operated the facilities in the early 20th century under a 99-year concession granted by Cuba's pre-Castro government, giving it the right to operate the docks until at least 2004. That agreement was effectively cut short when the Cuban government seized the property, even though roughly 44 years remained on the deal.
Mickael Behn, president of Havana Docks, argues the company's property interest did not expire in 2004 and says the cruise lines continued using facilities that were unlawfully confiscated.
The cruise lines counter that they did not begin sailing to Cuba or docking in Havana until 2016, after the Obama administration eased travel restrictions, and after Havana Docks' concession would have expired in 2004.
"The notion that cruise lines should pay hundreds of millions of dollars for following the executive branch's lead in reopening travel to Cuba defies both common sense and other aspects of the Helms-Burton Act," lawyers for the cruise lines, led by former Solicitor General Paul Clement, told the justices.
As noted by the New York Times, a federal judge in the Southern District of Florida ruled against the cruise lines in 2022, rejecting their argument that their use of the docks amounted to lawful travel and ordering the four companies to pay at least $110 million each.
But the U.S. Court of Appeals for the 11th Circuit later reversed that ruling, finding the company's rights to the pier property were time-limited and would have expired in 2004 even if the confiscation had never occurred.
As reported by New York Times, a federal judge in the Southern District of Florida ruled against the cruise lines in 2022, rejecting their argument that their use of the docks constituted lawful travel and ordering the four companies to pay at least $110 million each.
But the U.S. Court of Appeals for the 11th Circuit later reversed that decision, finding that the company's rights to the pier property were time-limited and would have expired in 2004 even if the confiscation had never occurred.
For one expert cited in the report, the ruling carries particular weight for the Trump administration as it seeks to increase pressure on Cuba.
"President Trump will be listening for the outcome," said John S. Kavulich, president of the U.S.-Cuba Trade and Economic Council. A ruling that clears the way for the lawsuits, he added, could discourage investment on the island and put "pressure on Cuba to make the changes Trump wants."
Justice Department lawyers filed briefs supporting the port company and Exxon, telling the court that the lawsuits have become an important foreign policy tool to discourage investment in Cuba.
The lawsuits "deter private actors from collaborating with that government to exploit expropriated property, deprive the Cuban government of funds that undermine the United States' longstanding embargo of Cuba, and increase economic pressure to achieve democratic reforms in Cuba," Solicitor General D. John Sauer wrote.
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