Havana Docks v. Royal Caribbean

The LIBERTAD Act is an essential pillar of United States foreign policy toward Cuba's hostile and anti-American regime. Title III of that Act creates a private right of action for United States nationals who have a claim to property confiscated by that regime against persons who traffic in that property. 22 U.S.C. § 6082(a)(1). The Act specifies that such trafficking "undermines the foreign policy of the United States" by, among other things, "provid[ing] badly needed financial benefit" to the Cuban regime. Id . § 6081(6). The question presented here applies in every case brought under Title III, and will determine whether that provision continues to advance U.S. foreign policy toward Cuba: whether a plaintiff must prove that the defendant trafficked in property confiscated by the Cuban government as to which the plaintiff owns a claim (as the statute requires), or instead that the defendant trafficked in property that the plaintiff would have continued to own at the time of trafficking in a counterfactual world "as if there had been no expropriation" (as the divided Eleventh Circuit panel held below).

The dispute centers on property in the Port of Havana now known as the Havana Cruise Port Terminal. In the early 20th century, the Cuban Government granted a 50-year concession to a predecessor of Havana Docks Corporation (Havana Docks) to build and operate piers and terminal facilities at the port. This concession, a usufructuary right, was extended to 99 years in 1920, with a scheduled expiration date in 2004. Havana Docks, a company organized under the laws of Delaware and determined to be a U.S. national, acquired the concession in 1928. In 1960, shortly after Fidel Castro came to power, the Cuban Government confiscated the concession, expropriating Havana Docks’ property and assets at the Port of Havana without compensation. Subsequently, Havana Docks filed a claim with the Foreign Claims Settlement Commission, which certified a loss of over $9 million stemming from the confiscation. After Title III of the Helms-Burton Act became fully effective in May 2019, Havana Docks sued several cruise lines, including Royal Caribbean Cruises, Ltd., Norwegian Cruise Line Holdings, Ltd., Carnival Corporation, and MSC Cruises S.A. Co., for “trafficking” in the confiscated port property when their ships used the Havana Cruise Port Terminal from 2016 to 2019. The district court initially issued judgments totaling over $100 million against the four cruise lines. On appeal, the U.S. Court of Appeals for the Eleventh Circuit affirmed the district court’s finding that Havana Docks is a U.S. national under the Helms-Burton Act. However, the Eleventh Circuit reversed the judgments related to the 2016-2019 conduct, holding that Havana Docks’ limited property interest, the 99-year concession, would have expired in 2004, meaning the cruise lines did not traffic in the confiscated property during that period. The court remanded the case for further proceedings on Havana Docks’ separate claims against Carnival for alleged trafficking between 1996 and 2001.