The U.S. Supreme Court (SCOTUS) revived more than $440 million in judgments against the world’s largest cruise lines, accusing the operators of profiting from Cuban property seized during Fidel Castro’s communist revolution.
In an 8-1 ruling, the justices sided with Havana Docks Corporation, a U.S. company that operated docks in Havana prior to the Cuban revolution in 1959.
The court’s decision is a loss for Royal Caribbean Cruises, Carnival Corporation, Norwegian Cruise Line, and MSC Cruises, which used the port of Havana during the Obama-era diplomatic relations with the communist-led island.
“Havana Docks has shown that the cruise lines used confiscated property in which Havana Docks had a property interest and to which it owns a claim,” Justice Clarence Thomas wrote in the majority opinion.
The high court’s decision does not decide the case but allows the litigation to proceed.
According to CNN, Havana Docks Corporation built the island’s piers in 1905 on the condition that it would operate the port for 99 years. Castro’s government seized the docks shortly after coming to power.
From 2015 to 2019, the cruise operators “nonetheless moored their massive ships at the confiscated docks without Havana Docks’ authorization,” according to the company.
The lawsuits stem from the Helms-Burton Act, a statute that allowed Americans to sue companies that have profited from the Cuban government’s seizure of property following Castro’s takeover.
According to FOX News, U.S. presidents had suspended the law for years to avoid disputes with allies and businesses operating inside the Caribbean island.
In 2019, President Donald Trump reversed the Obama administration’s ties with Cuba, activating the law and increasing pressure on the communist regime.
Following the law’s reactivation, a federal judge in Miami ruled that cruise operators were liable, awarding Havana Docks more than $400 million in total. An appeals court later overturned that ruling.
“The docks belonged to the Cuban Government– not Havana Docks – all along,” Justice Elena Kagan wrote in dissent. “What Havana Docks owned was only a property interest allowing it to use those docks for a specified time. And that time-limited interest expired in 2004 – more than a decade before the cruise lines ever used the docks.”
