Carnival Corporation’s Fathom Granted Approval by Cuba to Cruise from U.S. to Cuba (PRNewsFoto/Carnival Corporation & plc)
By Gary Raynaldo DIPLOMATIC TIMES
A Federal judge in Miami ruled that four of the largest cruise lines “trafficked in stolen property” by traveling to Cuba. In the March 21, 2022, ruling, U.S. Judge Beth Bloom found that Carnival Corp., Royal Caribbean Ltd., Norwegian Cruise Lines Holdings, and MSC Cruises violated U.S. travel restrictions to Cuba and must compensate the heir of a confiscated business who filed a lawsuit under the Helms-Burton law. Carnival Corp., Royal Caribbean Ltd., Norwegian Cruise Lines Holdings, and MSC Cruises are now on the hook to pay millions of dollars in compensation. The cruise lines argued they engaged in lawful travel. The Helms-Burton Act exempts companies from liability if they use a confiscated property while providing “lawful” travel services. Carnival Cruise become the first company sued under the Trump Administration’s policy change allowing lawsuits against seized Cuban property. The Trump administration allowed former owners of commercial property expropriated by Cuba to sue companies and the Cuban government for using or “trafficking” in those confiscated holdings. US citizens and legal entities with their principal place of business in the US can seek compensation in the courts for the use of properties appropriated by Cuba’s Castro communist government.
Havana Docks Corp., sued Carnival Corp., Royal Caribbean Ltd., Norwegian Cruise Lines Holdings, and MSC Cruises under Title III of the Helms-Burton Act. (Havana Docks Corporation v. Carnival Corporation –United States District Court Southern District of Florida -19-21724) Havana Docks Corp. argues it holds a US-certified claim to piers that were nationalized after the 1959 Cuban revolution. Havana Docks is owned by Mickael Behn, the grandson of William C. Behn, an American who owned three docks that were confiscated the Cuban government in 1960. Havana Docks Corp. argues that: “One of the Libertad Act’s purposes was to protect United States nationals against confiscatory takings and the wrongful trafficking in property confiscated by the Castro Regime.”
The cruise lines took the position that their ship calls at the Havana facilities did not qualify as trafficking in stolen property. They argued they had to use the Havana cruise terminal to engage in educational “people-to-people” travel for American passengers that is permitted under the U.S. Office of Foreign Assets Control license. Carnival specifically argued that its use of the subject property was “incident to lawful travel to Cuba,” and “necessary to the conduct of such travel.” Carnival argues that it cannot be held liable because Havana Docks did not have a property interest in the Subject Property at the time Carnival was alleged to have committed the trafficking. Carnival contends that Havana Docks claim to the property was based on a “time limited concession” that expired in 2004. Carnival argues that it cannot be found liable because its conduct is alleged to have commenced in 2016. The Federal judge disagreed:
“The fact that OFAC (the Office of Foreign Assets Control) promulgated licenses for traveling to Cuba, and executive branch officials, including the president, encouraged defendants to do so, does not automatically immunize defendants from liability if they engaged in statutorily prohibited tourism.”
-U.S. Federal Judge Beth Bloom
The companies’ cruises to Cuba “constituted tourist activities and not proper people-to-people activities, paying millions of dollars to the Cuban Government to engage in impermissible travel,” Judge Bloom.
Travel to Cuba became lawful in 2015 when then President Obama eased restrictions of trade between the U.S. the socialist nation.
The case is now set for a jury trial scheduled for May to consider damages that the cruise lines should pay. Legal observers are of the opinion that the cruise lines may opt to settle the cases instead of having to pay out millions of dollars in damages. The owner of Havana Docks claims he is a U.S. national and “is the rightful owner of an interest in and certified claim to certain commercial waterfront real property in the Port of Havana, Cuba,” identified as the Havana Cruise Port Terminal. Havana Docks alleges that on or about May 1, 2016 and continuing until May 28, 2019, the cruise lines “knowingly and intentionally commenced, conducted, and promoted its commercial cruise line business to Cuba using the Subject Property by regularly embarking and disembarking its passengers on the Property without the authorization of Plaintiff or any U.S. national who holds a claim to the Property.
Carnival Corporation made history in May 2016 as the first U.S. cruise company to sail to Cuba in over 40 years with its Fathom brand, traveling from Miami to Cuba and operated more trips to Cuba than any other U.S. cruise brand.
