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Cruise Lines Will Contest A U.S. Court's Huge Award For A Havana Dock

Aria Thomas

Jan 04, 2023 11:22

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Carnival (NYSE:CCL) Corp and Royal Caribbean (NYSE:RCL) Cruises stated on Tuesday that they will appeal a U.S. court verdict ordering them and two other cruise operators to pay $110 million in penalties for usage of a port seized by the Cuban government in 1960.


U.S. District Judge Beth Bloom ruled last week in Miami to award $440 million to the plaintiff, Delaware-registered Havana Docks Corp; registered to two U.S. residents claiming to be descendants of the original proprietors of the Havana Cruise Port Terminal.


It followed Bloom's March finding that the port's use constituted trafficking in seized Havana Docks Corp. property. The ruling represented a turning point for Cuban-Americans seeking restitution for confiscated property during the Cold War.


The judgment against Carnival granted the plaintiff $109,671,180.90 in damages, whilst the rulings against Norwegian, Royal Caribbean, and MSC, the most recent of which was released on Tuesday, each awarded the plaintiff $109,848,747.87 in damages.


Royal Caribbean confirmed to Reuters that it "disagrees with the verdict and expects to appeal." Carnival claimed that it strongly disagreed with the verdict, that it would appeal, and that it had participated in "legal travel."


Norwegian Cruise Line (NYSE:NCLH) declined to comment, and MSC Cruises did not provide a response to a request for comment.


Under the Helms-Burton Act, which authorizes U.S. residents to sue over the use of property taken in Cuba after 1959, Havana Docks filed action against the cruise lines.


"This is an extraordinarily significant ruling by Judge Bloom. According to Roberto Martinez, counsel for Havana Docks, the commercial use of confiscated property in Cuba in contravention of U.S. law bears clear, well-defined, and extensively published legal penalties.


"The incontrovertible data revealed that the cruise lines profited over $1.2 billion from their trips that exploited the stolen facility, but did not compensate Havana Docks Corp or the Cuban people," he stated.


The decisions could spark future lawsuits by Cuban exiles seeking compensation for confiscations of property by the late Cuban leader Fidel Castro, believed to be worth $2 billion.