The U.S. Supreme Court has paved the way for Exxon Mobil to pursue legal action against Cuban state-owned enterprises in American jurisdictions. This follows a recent decision concerning properties seized after Fidel Castro’s rise to power in Cuba.
On Tuesday, the court ruled 6-3, marking the second favorable judgment in recent months for American proprietors of Cuban assets expropriated over six decades ago. The verdicts could bolster efforts by the Trump administration to pressure Cuba amidst an ongoing oil embargo.
The central issue in these cases is the interpretation of the 1996 Helms-Burton Act, which potentially lifts the immunity typically granted to foreign nations and their state-owned enterprises in U.S. courts. The Supreme Court’s decision overturns a previous ruling that protected Cuban state-owned entities from such lawsuits.
Exxon Mobil is pursuing compensation for assets formerly held by Standard Oil subsidiaries, which include over 100 service stations and a refinery. Last month, the court decided in favor of another U.S. company with claims over Cuban property, involving four cruise lines that operated during a brief U.S.-Cuba diplomatic thaw under the Obama administration. Both cases hinge on the same clause of the Helms-Burton Act, which permits suits over confiscated properties.
This legislation was enacted after the 1996 downing of civilian aircraft piloted by Miami-based exiles. Specifically, Title III authorizes U.S. citizens to file claims against entities profiting from or engaging in commerce with confiscated Cuban assets.
Historically, U.S. presidents have suspended this provision due to concerns from allies engaged in Cuban business and potential diplomatic consequences. However, in 2019, the Trump administration lifted this suspension, prompting Exxon Mobil to immediately file its lawsuit.
Writing for the majority, Justice Brett Kavanaugh argued that allowing presidential discretion in such suits while shielding Cuban interests would be illogical. Conversely, Justice Elena Kagan, representing the dissenting liberal justices, contended that the act does not explicitly remove sovereign immunity protections.
In 1969, the U.S. Foreign Claims Settlement Commission appraised Exxon Mobil’s Cuban properties at $71.6 million, with interest accruing at 6% annually from 1960, potentially exceeding $1 billion today. Additionally, nearly 6,000 other claims amount to $1.9 billion, excluding interest or damages.
