Supreme Court says Exxon can sue Cuba over $1B in seized property — potentially boosting US financial pressure on the country

The recent ruling by the Supreme Court allowing Exxon Mobil to sue the Cuban government for over $1 billion in seized property has significant implications for both countries. This decision could potentially give the United States greater financial leverage over Cuba, which is currently facing economic challenges.

In a 6-3 decision split along ideological lines, Justice Brett Kavanaugh stated that state-owned companies cannot claim sovereign immunity to avoid litigation over assets seized by the Cuban government. This ruling, along with a similar case last month, where companies were held liable for using seized property, reflects the Trump administration’s efforts to increase pressure on Cuba through embargoes and legal action.

The case revolves around the interpretation of the Cuban Liberty and Democratic Solidarity Act of 1996, also known as the Helms-Burton Act, which allows U.S. nationals to sue over property seized by the Cuban government. Exxon Mobil took advantage of this law to sue for the return of their properties in Cuba, including gas stations, an oil refinery, depots, and packaging plants.

The Cuban government argued that the companies were protected by the Foreign Sovereign Immunities Act (FSIA) and that Exxon Mobil needed to prove they were exempted from this law to proceed with the case. However, the Supreme Court overturned lower court rulings in favor of Cuba, stating that the Helms-Burton Act supersedes the FSIA in this context.

Justice Kavanaugh emphasized that Congress’s intent behind the Helms-Burton Act was to allow private suits against Cuban agencies and instrumentalities without the hindrance of sovereign immunity. The dissenting liberal justices argued that the Act did not clearly eliminate claims of sovereign immunity, but the majority decision stood.

This ruling opens the door to more litigation over assets seized by the Cuban government, adding pressure to the financially distressed country. It also sends a strong message to other companies that have suffered losses in Cuba and may seek legal recourse. Overall, the Supreme Court’s decision could have far-reaching consequences for U.S.-Cuba relations and international law.