Supreme Court OKs Exxon Mobil lawsuit over Cuban property seized by Fidel Castro's government

WASHINGTON — The Supreme Court on Tuesday ruled that Exxon Mobil can sue Cuban state-owned companies in American courts over property on the island nation that was seized after Fidel Castro took power.

The 6-3 decision was the second in as many months in favor of U.S. owners of Cuban property that was confiscated by the Communist government more than 65 years ago.

The outcome in the two cases could be an additional lever for the Trump administration to exert pressure on Cuba, which is already being squeezed by a U.S. oil embargo.

At issue was whether the 1996 law known as Helms-Burton removes the shield from lawsuits in U.S. courts that typically cover foreign countries and state-owned businesses. The justices reversed a lower-court ruling that found that the Cuban state-owned companies are immune from lawsuits in U.S. courts.

Exxon Mobil is seeking compensation for the confiscation of assets owned by subsidiaries of Standard Oil, Exxon Mobil’s predecessor, including more than 100 service stations and an oil refinery.

Last month, the court ruled in another case involving confiscated property in Cuba, reviving claims by the U.S. company that operated docks in Havana against four cruise lines that brought tourists to Cuba during the brief thaw in relations during the Obama administration. That case turned on the same section of Helms-Burton allowing lawsuits over seized property.

Congress passed the law in response to the 1996 downing of civilian planes flown by Miami-based exiles.

Title III of the law allows Americans to sue almost any company that engages in commercial activity or benefits from property confiscated by Cuba’s government.

Before the first Trump administration, every president had suspended the provision because of objections from U.S. allies doing business in Cuba and the effect on future negotiated settlements between the U.S. and Cuba.

But Trump lifted the suspension in 2019, and Exxon Mobil filed its lawsuit the same day.

Justice Brett Kavanaugh wrote for the conservative majority that it “would make little sense” if the law allowed the president to decide whether suits can proceed against Cuban interests while also protecting them.

Justice Elena Kagan wrote in a dissent for the three liberals that the 1996 law simply contains no provision eliminating the sovereign immunity shield.

The U.S. Foreign Claims Settlement Commission, an arm of the Justice Department, said in 1969 that the value of Exxon Mobil's property in Cuba is $71.6 million, plus 6% annual interest beginning in 1960. That would be worth more than $1 billion today, Kavanaugh wrote.

In addition, the commission found that nearly 6,000 individuals and businesses held claims worth $1.9 billion, before adding in interest or damages.

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