The US Supreme Court ruled Tuesday that oil giant ExxonMobil could sue Cuba’s state-owned oil company and a major business group for what it termed “unlawful trafficking” of its assets after Fidel Castro’s 1959 revolution.
The court ruled that the Cuban government did not hold sovereign immunity in this case, citing the 1996 Helms-Burton Act, which allowed US individuals and companies to sue over property confiscated by Cuba.
The verdict by the conservative-dominated court comes at a time of soaring tensions between Washington and Havana, with US President Donald Trump threatening to take over the island nation.
The United States has imposed an economic embargo on Cuba since 1962, and since January Trump has increased pressure by imposing an oil blockade and tightening sanctions.
Exxon had sued Cuban state-owned companies Union Cuba-Petroleo (CUPET) and CIMEX seeking more than $1 billion in damages for the seizure of its property.
The Cuban companies had moved to dismiss the suit, asserting that they had sovereign immunity under the US Foreign Sovereign Immunities Act (FSIA).
Tuesday’s Supreme Court verdict could throw open the doors to more US companies suing Cuban government entities under the Helms-Burton Act.
In its verdict, the court held that the 1996 law “abrogates the sovereign immunity of Cuban agencies and instrumentalities.”
It added that plaintiffs who sue Cuban agencies do not need to satisfy the FSIA’s exceptions list.
The verdict came in 6-3, with the justices divided along ideological lines, with the three liberal-leaning judges dissenting.
In May, the Supreme Court decided another key case involving Helms-Burton, ruling that four major cruise lines must pay $109 million each to a US company that owned a Havana dock before it was confiscated by the Cuban government in 1960.
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