Supreme Court Rules Against Cruise Lines in Cuban Docks Case
Four major cruise lines are now facing a hefty $440 million in judgments, stemming from accusations that they unlawfully utilized Cuban docks seized back in 1959 by Fidel Castro. This comes after an 8-1 ruling from the Supreme Court, which sided with the Havana Docks Corporation, a U.S. company that operated those docks before the confiscation.
The decision arrives during a time of escalating tensions between the U.S. and Cuba. Just a day prior, the U.S. announced murder charges against Raúl Castro related to the tragic 1996 shootdown of planes carrying Miami-based exiles.
This ruling revives previous judgments against Carnival, Norwegian Cruise Line, Royal Caribbean, and MSC Cruises for their use of the Havana port during Barack Obama’s administration, when cruise lines began making calls in Cuba again in 2016 following a thaw in relations.
Previously, U.S. presidents had put a halt to enforcing the Helms-Burton Act to prevent potential conflicts involving allies or businesses operating in Cuba. However, in 2019, Donald Trump reversed this long-standing pause on Title III of the Act, thereby allowing U.S. nationals to sue companies benefiting from properties seized by the Cuban government.
Justice Clarence Thomas, writing for the majority, criticized a lower court’s dismissal, asserting that the cruise lines were liable for using confiscated property that Havana Docks rightfully claims. By reviving this case, the majority strongly rejected the lower court’s logic, stating that the cruise lines’ actions clearly fell under the statute’s definition of trafficking in stolen assets.
In a dissenting opinion, Justice Elena Kagan indicated that the majority had misunderstood the statute, suggesting that Havana Docks only held a limited property interest in these docks, which could set a concerning precedent for plaintiffs to seek damages for properties that they do not own.
A Miami federal judge had previously ruled in favor of Havana Docks, awarding them over $400 million in damages, but an appeals court later reversed this decision prior to the Supreme Court’s ruling. The ongoing legal battle is set to return to lower courts, where the cruise lines will likely continue to dispute the claims.
These lawsuits stem from the Helms-Burton Act, enacted in 1996, which allows U.S. nationals to file claims against entities alleged to have profited from properties confiscated by the Cuban government following the revolution.
