Key facts
- The Supreme Court ruled that ExxonMobil can sue Cuban state-owned companies in U.S. courts.
- The lawsuit concerns property seized by Fidel Castro's government more than 65 years ago.
- The ruling is based on Title III of the 1996 Helms-Burton Act.
- ExxonMobil seeks compensation for assets including over 100 service stations and an oil refinery.
- The court's decision reverses a lower court ruling that had granted immunity to Cuban state-owned companies.
The Supreme Court has ruled that ExxonMobil can pursue lawsuits in U.S. courts against Cuban state-owned companies for property confiscated by Fidel Castro's government. This 6-3 decision overturns a lower court's ruling that had granted immunity to these companies.
The case hinges on Title III of the 1996 Helms-Burton Act, which allows U.S. nationals to sue entities that "traffic" in property confiscated by the Cuban government. The Trump administration lifted the suspension of this provision in 2019, paving the way for ExxonMobil's lawsuit the same day.
ExxonMobil is seeking compensation for assets previously owned by Standard Oil, its predecessor, which included over 100 service stations and an oil refinery. The U.S. Foreign Claims Settlement Commission valued ExxonMobil's confiscated property at $71.6 million in 1969, with 6% annual interest, a sum that could be worth around $3 billion today, plus potential treble damages.
This ruling follows a similar decision last month that revived claims by another U.S. company against cruise lines for bringing tourists to Cuba. The court's decisions could provide the Trump administration with additional leverage against Cuba, which is already facing a U.S. oil embargo.