Supreme Court Rules ExxonMobil Can Sue Cuban Firms Over Seized Assets

The Supreme Court on Tuesday ruled that ExxonMobil can sue Cuban state-owned companies in American courts over property confiscated after Fidel Castro's government took power more than 65 years ago. The 6-3 decision, written by Justice Brett Kavanaugh, reversed a lower court ruling that had granted immunity to Cuban state firms, allowing the energy giant to seek compensation for assets including more than 100 service stations and an oil refinery that were seized from its predecessor, Standard Oil.

The case centered on Title III of the 1996 Helms-Burton Act, which allows Americans to sue any company that engages in commercial activity or benefits from property confiscated by Cuba's government. Prior to the first Trump administration, every president had suspended this provision due to objections from U.S. allies doing business in Cuba. President Donald Trump lifted the suspension in 2019, and ExxonMobil filed its lawsuit the same day.

The ruling is the second in as many months favoring U.S. owners of Cuban property. Last month, the court revived claims by a U.S. company that operated docks in Havana against four cruise lines that brought tourists to Cuba during the Obama era thaw in relations. Together, the decisions could provide the Trump administration with additional leverage to pressure Cuba, which is already under a U.S. oil embargo.

In his majority opinion, Justice Kavanaugh noted that the U.S. Foreign Claims Settlement Commission valued ExxonMobil's Cuban property at $71.6 million in 1969, plus 6% annual interest dating back to 1960, which would be worth more than $1 billion today. He added that the commission found nearly 6,000 individuals and businesses held claims worth $1.9 billion, before interest or damages. Justice Elena Kagan dissented on behalf of the court's three liberal justices, arguing that the 1996 law contains no provision eliminating sovereign immunity for Cuban state-owned companies.