The United States Supreme Court is set to examine a high-stakes lawsuit where Havana Docks Corporation accuses several cruise companies, including Royal Caribbean Cruises, Ltd., of allegedly breaching the embargo on Cuba by utilizing port facilities seized after the Cuban revolution.
This legal battle has escalated to the Eleventh Circuit Court of Appeals, which recently granted a stay in favor of the plaintiff. According to the Eleventh Circuit's decision, the mandate is suspended until March 20, 2025, pending the filing of a petition for a writ of certiorari with the Supreme Court. Should the plaintiff file this petition within the specified timeframe, the suspension will remain in effect until the Supreme Court issues a final decision. Otherwise, the mandate will be executed without delay.
The case, filed under appeal numbers 23-10151 and 23-10171, pits Havana Docks Corporation against several international cruise lines, such as Norwegian Cruise Line Holdings Ltd., Carnival Corporation, and MSC Cruises SA, alongside Royal Caribbean. The lawsuit centers on claims that these companies used port properties expropriated by the Cuban government without authorization, allegedly violating the U.S. embargo under Title III of the Helms-Burton Act.
The appellate court's decision indicates that the Supreme Court will only request the case's records if necessary to facilitate a ruling. Meanwhile, David J. Smith, the Eleventh Circuit's Clerk, noted that the proceedings would remain on hold pending any notification from the Supreme Court.
Between 2016 and 2019, these four major cruise lines conducted 912 trips to Cuba, generating over $1.115 billion in revenue. These operations involved contracts with Cuban government agencies, which, according to court documents, might constitute a breach of U.S. embargo regulations.
In December 2022, federal judge Beth Bloom ruled that these companies engaged in "trafficking acts" and participated in "prohibited tourism" by using Havana port facilities seized without compensation after the Cuban Revolution. Consequently, the companies were ordered to pay $400 million in damages to Havana Docks Corporation.
However, in October 2024, the U.S. Eleventh Circuit Court of Appeals overturned this decision, contending that Havana Docks' property rights had expired in 2004. Therefore, the cruise lines' activities between 2016 and 2019 did not constitute illegal "trafficking" under U.S. law.
This case poses a significant challenge for the cruise lines involved, as it could set a crucial precedent regarding the enforcement of economic sanctions and the protection of property rights under U.S. law. The final outcome hinges on the Supreme Court's review, prolonging the anticipation surrounding a case that has drawn attention both in the United States and Cuba.
Key Questions About the Supreme Court's Review of the Cruise Line Lawsuit
What is the main allegation against the cruise lines?
The main allegation is that the cruise lines illegally used port facilities in Cuba that were seized after the Cuban revolution, violating the U.S. embargo under the Helms-Burton Act.
What was the initial ruling regarding the case?
In December 2022, Judge Beth Bloom ruled that the cruise lines had engaged in "trafficking acts" and "prohibited tourism," ordering them to pay $400 million in damages. This decision was later overturned by the Eleventh Circuit Court of Appeals.
What could be the potential impact of the Supreme Court's decision?
The Supreme Court's decision could set a significant precedent for how economic sanctions and property rights are enforced under U.S. law, affecting future cases related to the Cuban embargo.