The U.S. Supreme Court has made it easier for American companies to seek compensation from Cuba for properties seized decades ago, ruling in favor of Exxon Mobil in its lawsuit against Cuban state-owned firm Corporación CIMEX.
In a 6-3 decision on Tuesday, the justices determined that the defense of foreign sovereign immunity, which typically shields foreign governments and their agents from U.S. lawsuits, is not applicable in cases brought under a 1996 U.S. law known as the Helms-Burton Act. Justice Brett Kavanaugh, writing for the majority, stated that the federal law eliminates sovereign immunity for Cuban agencies and instrumentalities.
The ruling reverses a lower court's 2024 decision that had allowed CIMEX to claim sovereign immunity. Exxon is seeking compensation for assets, including an oil refinery and service stations, that were confiscated by Fidel Castro's government in 1959. These assets were formerly owned by Standard Oil, Exxon's corporate predecessor.
Exxon's initial claim was valued at $70 million at the time of confiscation. With interest and potential enhanced damages, the current claim exceeds $1 billion. According to Exxon, CIMEX, Cuba's largest state-owned conglomerate, continues to control and profit from these confiscated properties.
The Helms-Burton Act, specifically a provision known as Title III, permits lawsuits in U.S. courts against individuals or entities found to be "trafficking" in property confiscated by Cuba's government after the 1959 revolution. The Trump administration had supported Exxon's appeal to the Supreme Court.
This decision comes amid heightened tensions in U.S.-Cuban relations. The U.S. recently brought murder charges against former Cuban President Raúl Castro, part of an escalating pressure campaign by the Trump administration. The U.S. has also imposed sanctions on countries supplying Cuba with fuel, contributing to severe energy shortages on the island.
Previously, U.S. presidents had suspended Title III of the Helms-Burton Act for national security reasons, seeking to avoid diplomatic conflicts with allies whose companies had invested in Cuba. However, President Trump lifted this suspension in 2019, leading to a surge of approximately 40 lawsuits filed under the act in 2019 and 2020. Lower courts had previously presented significant challenges for U.S. companies pursuing such claims, with many lawsuits dismissed on procedural or jurisdictional grounds.
The Supreme Court's decision removes a substantial hurdle for Exxon and could pave the way for other companies with claims against Cuban entities to pursue legal action. The case will now return to a lower court for further proceedings regarding CIMEX's liability.