Judge Rules Against Plaintiffs In Non-Libertad Act Title III Lawsuit Against Spain's Melia Hotels; Lawsuit Will Continue

On 3 May 2021, Judge Margalida Victoria Crespi, Magistrate-Judge of the Court of First Instance No. 24 of Palma, Spain, again rejected the jurisdiction of the Court to hear the procedure, which obliges again plaintiffs to return to the Provincial Court.

Neither Gaviota S.A. nor the government of the Republic of Cuba responded to the Court. Judge Crespi then ruled that since the defendants did not respond, and they are indispensable parties to the lawsuit, the case cannot go forward. Plaintiffs will appeal. LINK To Ruling

On 12 March 2002, Palma de Mallorca, Spain-based Meliá Hotels International (2019 revenues approximately US$2.1 billion) reportedly offered US$5 million to the descendants of Mr. Rafael Lucas Sanchez Hill as payment to prevent the United States Department of State from using Title IV relating to the Sol Rio de Oro Hotel in response to enactment in 1996 of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as "Libertad Act").

Title IV of the Libertad Act restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims. Employees of one Canada-based company is currently known to be subject to this provision based upon a certified claim.

On 26 March 2002, Sol Melia International, reportedly believing the [George W. Bush Administration; 20 January 2001 to 20 January 2009] United States Department of State would neither implement Title III nor Title IV of the Libertad Act, Melia Hotels International withdrew the offer of US$5 million and proposed US$3,197.75 representing a value (.06%) based upon the twenty-nine (29) acres of land occupied by the Sol Rio de Oro Hotel of the approximately 120,000 acres of land claimed by the descendants of the owners of the property. The US$3,197.75 was determined by Melia Hotels International as the corresponding percentage of the US$5 million tax loss carry-forward amount with the Internal Revenue Service (IRS) in the 1960's.

On 29 May 2019, descendants of Mr. Rafael Lucas Sanchez Hill, acting as Central Santa Lucia L.C., filed a lawsuit in Spain seeking US$10 million from Palma de Mallorca, Spain-based Melia Hotels International S.A. (2019 revenues approximately US$2 billion) seeking damages for the use of land upon which a hotel is located in the Republic of Cuba. The lawsuit is not using provisions of Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).

Title III of the Libertad Act authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.

On 11 January 2021, the judge ordered the inclusion of the government of the Republic of Cuba and Gaviota S.A., but not Gesmesol S.A. Plaintiff attorneys objected as the complaint alleges “unjust enrichment” only against Melia Hotels International S.A. Plaintiff attorneys did not appeal the order to avoid the risk of a dismissal. Plaintiff attorneys are serving the government of the Republic of Cuba and Gaviota S.A. through the required diplomatic channels. The government of the Republic of Cuba may claim sovereign immunity, but Gaviota S.A. is subject to the jurisdiction of the court. The government of the Republic of Cuba and Gaviota S.A. are not subject to plaintiff claim of “unjust enrichment,” but are deemed necessary parties by the judge since they are responsible for the initial expropriation and current operation of property of plaintiff.

On 10 February 2021, Central Santa Lucia L.C. filed its response to the court. The focus of the response was the government of the Republic of Cuba may only be added as a defendant if the government of the Republic of Cuba consents to being a defendant; the plaintiff does not believe the government of the Republic of Cuba needs to be a defendant while Melia Hotels International S.A. believes that the government of the Republic of Cuba should be a defendant.

LINK TO PREVIOUS POSTS

Spanish Appellate Court Rules Sánchez Hill (non-Libertad Act) Lawsuit Against Meliá Hotels International Has Jurisdiction to Proceed; Discovery Begins (28 April 2021)

In Lawsuit Filed In Spain Against Melia Hotels, Plaintiff Argues That Government Of Cuba Is Not Required To Be A Defendant; Melia Hotels Says Otherwise (10 February 2021)

Third Meeting In Two Months- EU High Representative for Foreign Affairs Borrell Again Does Not Discuss Cuba With U.S. Secretary Of State Blinken. Confirms Cuba Not Important To EU-U.S. Relations.

United States Department of State
Washington DC
4 May 2021

Secretary Blinken’s Meeting with EU High Representative for Foreign Affairs and Security Policy Borrell

”Secretary of State Antony J. Blinken met today with EU High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission Josep Borrell on the margins of the G7 Meeting in London. Secretary Blinken reiterated the U.S. commitment to revitalize and raise the level of ambition in U.S.-EU relations, and he and High Representative Borrell discussed the U.S.-EU Summit to be held in June. The Secretary and High Representative also discussed ways to deepen U.S.-EU cooperation on shared foreign policy priorities, including Russia, Iran, China, Afghanistan, and the Horn of Africa.”

European Union
Brussels, Belgium
4 May 2021

United States: High Representative/Vice-President Josep Borrell meets with Secretary of State Antony Blinken

”On 4 May, EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Josep Borrell, met with the Secretary of State of the United States of America, Antony Blinken, in London, in the margins of the G7 Ministerial. The meeting was an opportunity to discuss on a bilateral basis some of the most urgent foreign and security challenges ahead, which were also the subject of discussion among G7 Foreign Ministers in their two-day meeting. High Representative/Vice-President Borrell and Secretary Blinken addressed the latest developments in the ongoing discussions on the Joint Comprehensive Plan of Action (JCPOA) – the Iran nuclear deal – in view of a possible return of the United States to the JCPOA and how to ensure the full and effective implementation of the JCPOA. They also discussed relations with Russia in light of Russia’s recent military build-up in illegally-annexed Crimea and on the border with Ukraine, the health of Alexei Navalny, and Russia’s actions against EU Member States and sanctions against EU citizens. High Representative Borrell and Secretary Blinken also discussed the situation in Afghanistan in light of recent US policy decisions, as well as relations with China. The High Representative also raised concern over the increasing instability in Colombia and the need to move forward on the implementation of the peace agreement. The upcoming EU-US Summit in Brussels in June will provide further momentum in the EU-US relationship."

EC/EU Interaction With Secretary Of State Blinken

15 February 2021- European Parliament Member Wrote Mr. Borrell About Cuba
24 March 2021- Secretary Of State Blinken Visits Brussels- Cuba Not Discussed
29 March 2021- Mr. Borrell Writes To EP Member He Would “Address” Cuba With Biden Administration
15 April 2021- One Year Since EU-Based Libertad Act Lawsuit Defendant Asked EC For Guidance
15 April 2021- Secretary Of State Blinken Visits Brussels- Cuba Not Discussed
4 May 2021- Secretary Of State Blinken Visits London, Meets With Mr. Borrell- Cuba Not Discussed
15 June 2021- President Biden Visit To Brussels For U.S.-EU Summit

On 29 March 2021, HRVP Borrell responded to an inquiry from Mr. Javier Moreno Sanchez, a member of the Strasbourg, France-based EP who is a member of the “Group of Friendship and Solidarity with the People of Cuba.” The response from HRVP Borrell was inaccurately publicized as an agreement by Mr. Borrell to “mediate” rather than “address” the issue with the United States:

Dear Members of the European Parliament, Thank you for your letter of 15 February on the designation of Cuba as a state sponsor of terrorism by the previous US administration. As I have stated to Foreign Minister Rodriguez at the EU-Cuba Joint Council on 20 January, the EU rejects this designation. The decision taken by the previous US administration has no factual basis, given the positive role Cuba has played in the peace negotiations between the Colombian government and the National Liberation Army (Ejercito de Liberacion Nacional, ELN). The ELN members were in Cuba as part of the now aborted peace negotiations with the Colombian government, having travelled there at the request of the Colombian government for the negotiation process, which has had the full support of the EU. As I have indicated in my statement referred to above (1), this designation adds to the hardship caused to the Cuban people by the US embargo. In our contacts with the new US administration, we will address this issue and call on the US to lift this designation. Yours faithfully, Josep Borrell Fontelles

From The Miami Herald: Biden in no hurry to normalize ties to Cuba, aide says.

The Miami Herald
Miami, Florida
30 April 2021

Biden in no hurry to normalize ties to Cuba, aide says. Makes sense, it would be political suicide

By Andres Oppenheimer

The Biden administration is in no rush to return to a full normalization of relations with Cuba, despite pressure from the Democratic Party’s far-left wing — at least judging from what President Biden’s top adviser on Latin American affairs told me in an interview.

Juan S. Gonzalez, the White House National Security Council’s senior director for the Western Hemisphere, told me on April 27 that the administration would have to see “concrete steps” toward an economic or political opening in Cuba before deciding to fully return to the Obama-era normalization of ties with the island.

Gonzalez says that Biden will go ahead with his campaign promises to relax restrictions on U.S. travel and remittances to Cuba and seek to grant 20,000 visas a year to Cuban migrants.

But the decision on whether to relax the embargo is “up to the U.S. Congress,” he said. The fact that General Raul Castro recently retired from his job as leader of Cuba’s Communist Party — the most powerful position in the one-party country — does not by itself mean a whole lot, Gonzalez suggested.

“Look, we are prepared to talk with the Cubans,” Gonzalez said, noting that the United States has diplomatic relations with Cuba. “But the most important thing is that the president’s policy will be one in which Americans, especially Cuban-Americans, will be the best ambassadors of U.S. diplomacy.” And, he added, “Human rights will be a key factor in any conversation that we may have with the regime.”

Gonzalez concluded that the Biden administration has “no major urgency to invest a lot of time” on Cuba “unless we see concrete things” on the island. Translation: The ball is in Cuba’s court.

The way I see it, Biden is doing the right thing by resisting the pressures from his party’s left wing on Cuba.

In March, 80 Democratic members of the U.S. House of Representatives signed a letter to the president urging him to pursue “a more constructive approach” toward Cuba “by promptly returning to the Obama-Biden administration policy of engagement and normalization of relations.” The majority of House Democrats did not sign the letter.

Ben Rhodes, Obama’s deputy national security adviser, who was the architect of the former president’s normalization of ties with Cuba, tweeted disapprovingly on April 23 that, “So far, Biden has been completely indistinguishable from Trump on Cuba policy and messaging.”

But the fact is that none of the 80 House Democrats who signed that letter are from Florida or — in most cases — don’t know much about Cuba. And Rhodes has a personal investment in seeing his policy continued by Biden.

But the administration would be committing political suicide in Florida — a key state in the 2022 mid-term and the 2024 presidential elections — if it made friendly gestures toward Cuba, barring any steps toward an economic or political opening on the island.

The Democrats lost two seemingly solid House seats in Miami in the November elections, both taken by Republicans who won a majority of Cuban-American votes and who were helped by Trump’s claims that Biden was a “socialist” who would restore full ties with Cuba.

If Biden wants to keep control of the House and pass his ambitious government plans, he should fight to recover those two seats in Congress, and try to keep Florida from becoming a solidly Republican state.

Relaxing some of the travel and remittances restrictions put in place by Trump is a good idea, as long as it’s done under rules that would keep U.S. dollars from going into the Cuban military’s pockets.

U.S. tourists, for instance, should not be allowed to go to Cuban military-owned hotels. Making sure that they stay at private guest houses would help create a stronger private sector in Cuba.

But a bigger U.S. opening toward Cuba would be a kiss of death for the president’s party in Florida and would be totally inconsistent with Biden’s vow to restore human rights and democracy as cornerstones of America’s foreign policy.

It wouldn’t make sense for Biden to make an exception with Cuba, a 63-year-old dictatorship that is one of the world’s worst police states. Right now, Biden is doing the right thing by not rewarding its repressive regime.

After 720 Days, Has Title III Of The Libertad Act Resulted In What Its Authors & Advocates In 1996 Proffered That It Would Accomplish? The "Jury" Is Still Out...

Two Years Since Title III Lawsuits Permitted
Thus Far No Verdicts Or Judgements Requiring Defendants To Pay Anything
More Than 223 Attorneys Billing Millions Of Dollars
Plaintiffs Continue To Wait

The Trump Administration on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).  

After 720 days, has implementing Title III of the Libertad Act resulted in what its authors and advocates in 1996 proffered that it would accomplish?  The jury’s still out. 

To date, none of the thirty-six lawsuits have had a trial by jury, no judge has issued a monetary judgement, none of the more than seventy defendants have confirmed they have settled with plaintiffs.   

What is known: Attorneys representing plaintiffs and defendants may have accumulated approximately US$19 million in billable hours.  For the plaintiffs, they are collectively seeking billions of United States dollars in damages.  

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Title III was suspended in six-month increments as required by the Libertad Act by the Clinton Administration (1993-2001), Bush Administration (2001-2009), Obama Administration (2009-2017) and through the first half of the Trump Administration (2017-2021). 

36 Lawsuits Filed (11 Certified Claimants & 25 Non-Certified Claimants)
4 Of The Dismissed Lawsuits At Court Of Appeals
US$244,800.00+ Court Filing Fees (not including attorney court appearance fees)
79+ Law Firms
223+ Attorneys
13,500+ Filed Court Documents
US$19+ Million Law Firm Billable Hours (estimated 85% by defendants)
15 Countries Impacted
118 Plaintiffs (some in multiple cases)
4 Class Action Requests
70 Defendants (including corporate parent, subsidiaries; some sued in multiple lawsuits)
25 United States Defendants (not including subsidiaries)
6 Republic of Cuba Initial Defendants (three remaining)
30 Non-United States Defendants
9 European Union-Based Defendants
5 Companies Notified As Potential Defendants

The Republic of Cuba’s unattractiveness as a depository for Direct Foreign Investment (DFI) has far more to do with its commercially inhospitable landscape, a direct byproduct of directives of the Communist Party of Cuba, than with the affect and effect of United States policies, regulations and statues, as well as the Libertad Act.  As a result, there are few companies, particularly those globally-connected, who have a substantial DFI or other type of presence within the Republic of Cuba. 

Given the Republic of Cuba’s 11.3 million population, its level of DFI should be in the tens of billions of dollars- even with the commercial, economic and political sanctions implemented by the United States.  

Libertad Act Background 

The Trump Administration has made operational Title III and further implemented Title IV of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). 

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Title IV restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims.  One Canada-based company and one Spain-based company are currently known to be subject to this provision based upon a certified claim and non-certified claim. 

Libertad Act Suspension History 

Title III has been suspended every six months since the Libertad Act was enacted in 1996- by President William J. Clinton, President George W. Bush, President Barack H. Obama, and President Donald J. Trump. 

On 16 January 2019, The Honorable Mike Pompeo, United States Secretary of State, reported a suspension for forty-five (45) days.
On 4 March 2019, Secretary Pompeo reported a suspension for thirty (30) days.
On 3 April 2019, Secretary Pompeo reported a further suspension for fourteen (14) days through 1 May 2019.
On 17 April 2019, the Trump Administration reported that it would no longer suspend Title III.
On 2 May 2019, certified claimants and non-certified claimants were permitted to file lawsuits in United States courts.

Certified Claims Background 

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).  The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims US$8.7 billion.  

The first asset (along with 382 enterprises the same day) to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).  

From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959.  Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials.  Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851.  The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.” 

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba.  The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc.  The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust. 

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

The ITT Corporation Agreement:  In July 1997, then-New York City, New York-based ITT Corporation and then-Amsterdam, the Netherlands-based STET International Netherlands N.V. signed an agreement whereby STET International Netherlands N.V. would pay approximately US$25 million to ITT Corporation for a ten-year right (after which the agreement could be renewed and was renewed) to use assets (telephone facilities and telephone equipment) within the Republic of Cuba upon which ITT Corporation has a certified claim valued at approximately US$130.8 million.  ETECSA, which is now wholly-owned by the government of the Republic of Cuba, was a joint venture controlled by the Ministry of Information and Communications of the Republic of Cuba within which Amsterdam, the Netherlands-based Telecom Italia International N.V. (formerly Stet International Netherlands N.V.), a subsidiary of Rome, Italy-based Telecom Italia S.p.A. was a shareholder.  Telecom Italia S.p.A., was at one time a subsidiary of Ivrea, Italy-based Olivetti S.p.A.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International. 

LINK TO COMPLETE LIBERTAD ACT TITLE III LAWSUIT STATISTICS

Ernst & Young Seeking Senior Auditor For Cuba Office

Cuba Has 1.42% Shareholding In Hungary-Based International Investment Bank

Ernst & Young Office In Cuba Publishes 15-Page Information Alert For 2020 Legislative Reforms

Liebherr Of Austria, Womy of Germany, Peinemann Of The Netherlands, Bouygues Of France Link For Hotel Construction Equipment To Cuba. Competition For Caterpillar And Deere.

An image created on 26 March 2021 which shows a hotel construction site along the Malecon (1st Street and 3rd Street & D Street and E Street) in the city of Havana, Republic of Cuba. The 600-room twin-tower property is owned by Republic of Cuba government-operated Gaviota S.A., a subsidiary of Republic of Cuba government-operated GAESA [Grupo de Administración Empresarial S.A.] which is controlled by the Revolutionary Armed Forces of the Republic of Cuba (FAR).

The crane was manufactured by Nenzing, Austria-based Liebherr-Werk Nenzing GmbH (2020 revenues approximately US$13 billion) and in use by Paris, France-based Bouygues Batiment International (Bouygues S.A. 2019 revenues approximately US$40 billion) which has since 1999 a substantial presence in the Republic of Cuba. The company “has handed over more than 30,000 rooms, or 50 percent of the accommodations offered in Cuba and 100 percent of those in five-star establishments.” In the United States (with approximately 9,600 employees), company projects have included Miami, Florida’s, Brickell City Centre & other Florida projects.  LINK To Previous Post 

Liebherr-Werk Nenzing GmbH is “one of the world's largest manufacturers of construction machinery.  The more than 48,000 employees [more than 1,200 in the United States] also help to shape technological advances in many other industries.  The Liebherr Group is still managed by the Liebherr family.” 

“Our national parts distribution center in Newport News, Virginia, along with our distribution centers in California, Florida, Maryland, Michigan, Missouri, Nevada, New Jersey, North Carolina, Texas and Wyoming, are dedicated to expediting parts orders, improving operational efficiency and minimizing transit time.  We also have a new global logistics hub in Germany to supply spare parts for the earthmoving business.  These facilities ensure outstanding customer support throughout the U.S. and North America.” 

“Liebherr markets a wide variety of products and technologies through its companies located across the United States.  The companies are Liebherr- Aerospace Saline, Inc., Liebherr Gear Technology, Inc., Liebherr Automation Systems, Co., Liebherr Mining Equipment Newport News Co., and Liebherr USA, Co., the umbrella company for eight divisions that are positioned across the United States.” 

Sales and Service Center in Miami, Florida: “The new sales and service center located in Hialeah Gardens in Miami, Florida opened in 2013.  The state-of-the-art facility serves as a major hub for the Maritime Cranes, and the Refrigeration and Freezers divisions of Liebherr USA, Co.  The new sales and service center is ideally located.  The port of Miami and the Miami International Airport are in close proximity to the new site.  This allows Liebherr to respond to customer enquiries within a short time and to accelerate the distribution of parts and services.  Besides maritime cranes such as mobile harbor cranes, container cranes, ship cranes, offshore cranes, stacking and gantry cranes (RMG, RTG), reachstackers and straddle carriers, Liebherr markets a variety of residential and commercial appliances in North America from this location.  The Miami sales and service center also offers a broad range of training courses for customers, operators, crane and service staff.” 

Standards of conduct for the area of foreign trade law: “As an international Group, Liebherr supplies goods and provides services all over the world.  Consequently, the Group is regularly confronted with laws and regulations from the area of foreign trade law (which we also consider the provisions of customs law to be part of).  Violations against the applicable laws and provisions of foreign trade law usually have far-reaching consequence for the companies involved and the individuals responsible for the violations.  Both in our own interest and in the interest of our customers and buyers, we therefore ensure that in our company the applicable national or intergovernmental rules and provisions of foreign trade law are observed and that appropriate processes and structures are maintained for this purpose.” 

First new Liebherr LTM 1220-5.2 mobile crane for Cuba.  Long-term use in a lead and zinc mine.  Liebherr provides reliable, fast service in Cuba in conjunction with its agent, CON-IMPEX 1 July 2016 

“Liebherr recently completed the first delivery of an LTM mobile crane to Cuba. Womy Rental construction machinery and crane rental company took delivery of the 5-axle LTM 1220-5.2. The crane is destined for long-term use in an [ a joint venture of Singapore-based Trafigura Group Pte. Ltd. and Republic of Cuba government-operated Geominera S.A.] ENIMCAR mine in Santa Lucía which extracts minerals for the production of lead and zinc.  The mine is currently being prepared and, among other things, will have its own port facility where a used Liebherr LHM 1400 port mobile crane will be used. ENIMCAR has also imported two used Liebherr LTM cranes, an LTM 1080/1 and an LTM 1055-3.1.” 

“The decision by the mine to use Liebherr mobile and port cranes was based on the fact that Liebherr can provide fast, efficient customer service in the region through sales and service company Liebherr Mexico, S. de R.L. de C.V. and can also supply spare parts in Cuba. Furthermore, ENIMCAR has had several Liebherr earthmoving machines, such as excavators and crawler tractors, for some considerable time. Liebherr works there with Berlin, Germany-based CON-IMPEX [Group], which is the official customer service point for Liebherr mobile cranes and earthmoving machinery on Cuba. CON-IMPEX Handelsgesellschaft mbH & Co. KG is a company based in Cuba and Germany which specialises in providing agency services for high quality technical products on Cuba. Its own technicians for construction machinery and cranes were trained at Liebherr Training Centres for this purpose.” 

“Liebherr Mexico provides commercial and technical advice and support for difficult situations with technicians from Mexico who can travel to Cuba in less than 24 hours. From its head office in Mexico City, this Liebherr company covers Central America and the Caribbean. There is a total of twenty Liebherr LTM series mobile cranes currently in use on Cuba, seven of which are operated by state crane rental company Cubiza.” 

Port Of Moerdijk, The Netherlands-Base Womy Equipment Supply: “We have continued expanding our activities since our foundation in 1996. We now specialise in the rental, sale and service of all kinds of equipment. All over the world you can find public transport, lift trucks, warehouse trucks, mobile cranes, aerial platforms, container handling equipment, earthmoving and construction equipment which bears our signature. Expanding our potential and capabilities within the diversity of this trade, has allowed to participate and undertake far-reaching and complex projects around the world. Our main office is located in the port of Moerdijk, close to the ports of Rotterdam, Amsterdam and Antwerp. The 20.000m² area offers warehousing, a construction and maintenance site, offices and stock parking. Our group owns companies in Cuba, Ivory Coast, Portugal, Poland, Romania, Oman, Ghana, Turkey and Liberia.  Working on an international scale implies showing respect for the cultures we work with. It also means investing in a partnership with local authorities and companies to help them achieve their goals. Merely supplying goods isn’t enough. We are a full service company which believes in cooperation. 

The opening of Womy Equipment Rental in ZED Mariel: “[Mariel, Cuba] Tuesday 31st October 2017: Womy Equipment Rental [https://www.womy.cu/en/], the extension of the already existing Womy Equipment Supply B.V. (2016), has officially opened the doors of their 1st facility in ZED Mariel Cuba.  Womy Equipment Supply has been around in Cuba for quite some time. With over 26 years of experience in providing all sorts of transport, lifting and after sales solutions, the company expands their current course of actions with a rental company.” 

“Womy Equipment Supply has already been involved with renting equipment in Cuba before. Womy Equipment Supply won the tender of changing the flares at Havana's refinery in cooperation with Cubiza. All the meetings, the discussions and studies regarding the possibilities of the execution, in combination with the opportunity offered by ZED Mariel, enlightened the spark for Womy to start a company only involved with the rental of equipment, Womy Equipment Rental.” 

“Womy Equipment (Rental and Supply) is part of [Hoogvliet, The Netherlands-based] Mobilift International [subsidiary of Hoogvliet, The Netherlands-based Peinemann Mobilift Groep B.V.; 2019 revenue approximately US$220 million; office in Spring, Texas] Mobilift International is known for its huge equipment rental operations throughout the Netherlands, especially in the harbour of Rotterdam. However, Mobilift's focus is internationally active as well. With offices in multiple parts of Europe, West-Africa, the Middle East and now their second office in Cuba, the group is becoming a global player in the horizontal- and vertical transport industry.” 

“A lot of experience, knowledge and expertise is a result of clustering all offices within Mobilift International. With combining all forces of the offices together, a strong foundation has been built for Womy Equipment Rental in Mariel. The office will be the centre point for the support in construction, logistics, renewable energy, and repair industry in Cuba.” 

Caterpillar And Deere & Company In Cuba 

In 2017, Deere & Company (2019 revenues approximately US$39.26 billion) established a distribution center in the Republic of Cuba, joining San Juan, Puerto Rico-based RIMCO, the Republic of Cuba distributor for Peoria, Illinois-based Caterpillar Inc. (2019 revenues approximately US$53.8 billion) established the same year.  At the time, neither Deere & Company nor Caterpillar issued media releases or posted information on their respective Internet sites.  

Since November 2017, Deere & Company delivered more than US$800,000.00 in agricultural equipment to the Republic of Cuba for use at its distribution center. Antioch, Tennessee-based Wirtgen America, Inc., a subsidiary of Windhagen, Germany-based Wirtgen Group (2020 revenues approximately US$3 billion), a construction equipment machinery subsidiary (acquired in 2017) of Deere & Company has also delivered products to the Republic of Cuba.  RIMCO continues to deliver equipment for use at its distribution center in the Republic of Cuba, including excavators, backhoes, graders, scrapers, bulldozers, railway fixtures, and signaling equipment, valued at more than US$4 million since December 2018.  

John Deere Financial Services was to provide payment terms/financing for the exports, primarily Series 5000 (price range US$25,000.00 to US$80,000.00) with a limited quantity of Series 7000 (price range US$219,000.00 to US$280,000.00).  According to the company, several hundred tractors, parts and accessories may be exported from the United States to the Republic of Cuba during the next four years, with the first deliveries (for testing and evaluation) scheduled for mid-November 2017.  The potential value of the several hundred products exported from the United States to the Republic of Cuba that would be financed could range from US$9 million to US$30 million.  John Deere Financial Services has not commented as to whether the product sales goals have been achieved or if there have been issues relating to the receipt of payments.  Caterpillar has not disclosed if the company has provided payment terms for its products exported to the Republic of Cuba. 

Exxon Mobil Libertad Act Lawsuit Against Cuba- Judge- Exxon Has Standing, "Exxon's injury is concrete"; Cuba Wins Too; Court References "mantle of triviality" and "baffling"

EXXON MOBIL CORPORATION V. CORPORACION CIMEX, S.A. (Cuba), CORPRACION CIMEX, S.A. (Panama), AND UNION CUBA-PETROLEO [1:19-cv-01277; Washington DC]

Steptoe & Johnson (plaintiff)
Rabinowitz, Boudin, Standard, Krinsky & Lieberman, P.C. (defendant)

LINK To 46-Page Memorandum and Order (4/20/21)

Excerpts:

Defendants now move to dismiss Exxon’s complaint, arguing that this court lacks subject matter jurisdiction over the dispute. For the reasons that follow, the court denies Defendants’ motion to dismiss as to CIMEX, defers ruling as to CUPET and CIMEX (Panama), and allows limited jurisdictional discovery as to CUPET and CIMEX (Panama).

Defendants have moved to dismiss the Second Amended Complaint for lack of subject matter and personal jurisdiction. See Defs.’ Mot. to Dismiss Action with Prejudice, & for Other Relief, ECF No. 42 [hereinafter Defs.’ Mot.]. As to subject matter jurisdiction, Defendants assert that: (1) they are agencies or instrumentalities of a foreign sovereign, Cuba, and thus are immune from suit pursuant to the Foreign Sovereign Immunities Act (“FSIA”), and (2) Exxon lacks Article III standing.

The parties agree that Cuba wholly owns Defendants CIMEX, CIMEX (Panama), and CUPET, and therefore Defendants are presumptively immune from suit in U.S. courts as agencies or instrumentalities of a foreign state.

In addition, Congress was careful to anticipate and explicitly provide instructions for instances in which Title III was in tension with existing doctrines, suggesting that Congress would have explicitly stated the FSIA did not apply to Title III if that were its intention.

Having determined that Title III does not supply the waiver of sovereign immunity needed to advance Exxon’s case, the court turns to the FSIA’s immunity exceptions. Two are relevant here: the commercial activity exception and the expropriation exception.

mantle of triviality

It is not entirely clear what Defendants contend Exxon’s action is based upon, but the court has little doubt that CIMEX’s use of confiscated property to participate in the remittance business is an “act . . . in connection with a commercial activity,” as required by section 1605(a)(2).

In sum, with respect to the requirement of direct effects in the United States, the court concludes: (1) CIMEX’s processing of remittances and its purchase and sale of goods imported from the United States have a direct effect in the United States; (2) Defendants’ use of Exxon’s confiscated property and CUPET’s competition in the global oil market, alleged pollution, and participation in a handful of meetings in the United States have not caused a direct effect in the United States; and (3) no acts of CIMEX (Panama), directly or as an alter ego of CIMEX, have been shown to have a direct effect in the United States.

FSIA’s Expropriation Exception

Exxon resists this conclusion by arguing that this court “must presumptively accept Plaintiff’s certified claim [from the FCSC] as conclusive proof of Plaintiff’s ownership interest in the property at issue.” Pl.’s Br. at 40–41. But that argument suffers from two problems. First, the FCSC’s certification of a claim at most creates a property right under domestic law, not international law. And second, the FCSC certifies claims for ownership interests that are broader than the property rights recognized under customary international law. The FCSC has jurisdiction to adjudicate “any rights or interests . . . owned wholly or partially, directly or indirectly . . . by nationals of the United States.” 22 U.S.C § 1643b(a) (emphasis added). By contrast, the expropriation exception requires the plaintiff to identify “rights in property” that have been “taken in violation of international law,” 2

Exxon resists this conclusion by arguing that this court “must presumptively accept Plaintiff’s certified claim [from the FCSC] as conclusive proof of Plaintiff’s ownership interest in the property at issue.” Pl.’s Br. at 40–41. But that argument suffers from two problems. First, the FCSC’s certification of a claim at most creates a property right under domestic law, not international law. And second, the FCSC certifies claims for ownership interests that are broader than the property rights recognized under customary international law. The FCSC has jurisdiction to adjudicate “any rights or interests . . . owned wholly or partially, directly or indirectly . . . by nationals of the United States.” 22 U.S.C § 1643b(a) (emphasis added). By contrast, the expropriation exception requires the plaintiff to identify “rights in property” that have been “taken in violation of international law,” 2

6 Exxon’s contention that Garcia-Bengochea v. Carnival Corp., 407 F. Supp. 3d 1281 (S.D. Fla. 2019), supports the proposition that “indirect ownership is permissible” under the expropriation exception is frankly baffling.

To recap, the court has found that the commercial activity exception reaches Exxon’s Title III claim against CIMEX, but not against CUPET or CIMEX (Panama). The court also has concluded that the expropriation exception cannot sustain a claim against any Defendant.

Though the court thinks it is a close call, it will permit limited jurisdictional discovery into the topics identified by Exxon concerning CUPET’s and CIMEX (Panama)’s trafficking activities that may have caused direct effects in the United States. Such discovery is limited to the three topics the court has identified.

Here, there can be no question that Congress legislated an injury in fact in Title III.

And Exxon’s injury is concrete.

Exxon possesses a claim from the FCSC certifying that it “suffered a loss in the total amount of $71,611,002.90.” FCSC Claim at 9. Quite plainly, a loss totaling almost $72 million constitutes a real and not abstract injury, and Exxon has sufficiently satisfied the concreteness element of standing.

Finally, although Defendants do not challenge the redressability of Exxon’s injury, it is clear that, if Defendants are found liable in this action, Title III provides for Exxon to receive “the amount, if any, certified to [it] by the Foreign Claims Settlement Commission under the International Claims Settlement Act of 1949, plus interest.” 22 U.S.C. § 6082(a)(1)(A)(i)(I). A favorable decision would therefore redress Exxon’s injury. See Lujan, 504 U.S. at 561.

The court concludes that Exxon has Article III standing to bring a claim under Title III of the LIBERTAD Act.

For the foregoing reasons, the court grants in part and defers in part Defendants’ Motion to Dismiss. The court denies Defendants’ Motion to Dismiss as to CIMEX and orders limited jurisdictional discovery as to CUPET and CIMEX (Panama). The parties shall meet and confer and propose to the court by May 4, 2021, a schedule for discovery that is consistent with the limited scope of discovery described in this Memorandum Opinion and Order.

U.S. Department Of State Comments On Retirement Of First Secretary General Raul Castro

United States Department of State
Washington DC
20 April 2021

Briefing With Spokesperson Ned Price

QUESTION: He spent a lot longer than just two months. (Laughter.) In fact, I think the Qataris might be giving him honorary citizenship. He’s been over there for the last two years, so like – but speaking of people who have been in places for a long time, do you guys have anything to say about Raul Castro’s retirement, resignation? He’s been a fixture of the Cuban Government for longer than I’ve been alive, for longer than you’ve been alive —

MR PRICE: I —

QUESTION: — I think probably everybody in this room has been alive.

MR PRICE: I appreciate the transition there. What I would say is, of course, it is for the Cuban people to speak to the results of the Cuban party congress. We have spoken about our review of our Cuba policy, which remains ongoing, but we know, of course, that will be governed by two principles. First, support for democracy and human rights will be at the core of those efforts, and we will seek to empower the Cuban people to determine their own future. And second, Americans, as we’ve said, are – tend to be the best ambassadors for freedom in Cuba. Don’t have anything to add about the change that has been announced. Again, it’s for the Cuban people to speak to the results of their party congress.

Despite Companies Already Defending Themselves, EC Continues To Evaluate "the possibility for an EU company to appear in front of a U.S. court"

MARIA DOLORES CANTO MARTI, AS PERSONAL REPRESENTATIVE OF THE ESTATES OF DOLORES MARTI MERCADE AND FERNANDO CANTO BORY V. IBEROSTAR HOTELES Y APARTAMENTOS SL [1:20-cv-20078; Southern Florida District]

Zumpano Patricios P.A. (plaintiff)
Bird & Bird (defendant)
Holland & Knight (defendant)

Excerpt:

On March 30, 2021, Iberostar received a response from the European Commission, in which it emphasized that the Application “gives rise to unprecedented questions that require careful consideration.” This is because “Applications referring to the possibility for an EU company to appear in front of a U.S. court in the context of a legal action pursuant to Title III of the Cuban Liberty Democratic and Solidarity Act of 1996 are exceptional, hence they raise specific issues.”

The Commission also noted that, “the services of the Commission are in charge of assessing the complexities of this request and balancing the large array of interests at hand. These internal dialogues are dynamic and the assessment multifaceted. Naturally, this requires extensive research, appraisals as well as analyses, both legal and factual.” Further, because every decision the Commission takes may set a precedent for future cases, “These systemic implications also require careful consideration, going beyond the individual case under assessment.”

With regards to the authorization procedure, the Commission explained in its letter that, “a committee composed of representatives of the Member States assists the Commission in the assessment of authorisation demands. This consultation is subject to the comitology procedure for which representatives of the Member States examine the measures and must provide a formal opinion. The consultation of the 27 Member States calls for conscientious coordination and is an expression of the values that guide the European Union, even more so when questions of foreign policy and sovereignty are at stake.” All these elements, “account for the duration of the procedure.” The Commission nonetheless confirmed once again that, “Our services are active in pursuing the assessment and the mandatory consultations. All services are making their best efforts to move forward promptly.”

LINK To Defendant’s Status Report (4/15/21)
LINK To Previous Post (3/31/21)
LINK To Libertad Act Title III Lawsuit Statistics

Six Years Later: What Did New York State Companies Receive From Governor Andrew Cuomo’s US$100,000.00+, 27-Hour Visit To Cuba?

Six Years Later…. What Did New York State Companies Get For Governor Cuomo’s Estimated US$100,000.00+ 27-Hour Visit To Cuba?

Was a US$10,000.000 “Advance” Trip Necessary If A Consultant Was Paid US$25,000.00?
What’s Happened- Where’s The Yogurt And Milk And Healthcare Products?
Why No Representatives From PANYNJ, NYSDAM?
Governor Staff To Company Ratio Was More Than 2:1
Why Did He Ignore Financial Institutions?

Six years ago, The Honorable Andrew Cuomo (D), Governor of the State of New York, embarked on a twenty-seven (27) hour quixotic journey to the Republic of Cuba with a foundation anchored far more upon his focus to be the “first” governor to visit the archipelago since the 17 December 2014 statements by President Barack Obama and President Raul Castro than by his role as the Chief Marketing Officer (CMO) of the State of New York.

To date, there have been no published reports of exports of products to the Republic of Cuba from the seven (7) companies participating in the 20 April 2015 to 21 April 2015 visit.

The Governor and his staff embraced the “planting seeds” analogy… There are few seeds that do not create something within six years.

The planning process and follow-up to the April 2015 visit was the third-least transparent of the twenty-one (21) governors who visited the Republic of Cuba since 1999. The visits by West Virginia Governor Earl Ray Tomblin and Mississippi Governor Phil Bryant were the least transparent.

What the Governor shared with media in January 2015 about the focus for his visit to the Republic of Cuba was different than the anticipated result from the April 2015 visit to the Republic of Cuba.

The Governor used a 150-passenger Airbus A-320 aircraft operated by Long Island City, New York-based JetBlue Airways Corporation for a group (including eighteen journalists) comprising approximately sixty (60) passengers. JetBlue Airways Corporation did not report if (how) the aircraft was chartered by a third-party and if any discount (or contribution) was provided.

The Governor traveled with representatives of seven New York-based companies and fifteen (15) members of his staff- seven (7) of whom had a focus upon relations with the media. He was accompanied by five (5) representatives of the New York State Legislature. Some delegation members had made campaign contributions to Governor Cuomo.

Governor Cuomo was not the first governor to have a visit scheduled to the Republic of Cuba since 17 December 2014. He was the second.

The Honorable Jay Nixon (D), Governor of the State of Missouri, was scheduled to visit from 1 March 2015 to 4 March 2015, but due to the death (suicide) of The Honorable Tom Schweich, Missouri State Auditor, the ninety-five (95) member delegation was led by Mrs. Georganne Nixon.

Governor Cuomo directed more resources (human and financial) towards preparation of the April 2015 visit than any of the governors who visited the Republic of Cuba since 1999, resulting in the highest expenditure of taxpayer funds for one night in the city of Havana, Republic of Cuba.

The U.S. flag was not flown outside the U.S. Interests Section in Havana on 20 April 2015. On 20 July 2015, the U.S. Interests Section in Havana was re-designated as U.S. Embassy Havana. The Honorable John Kerry, United States Secretary of State, traveled to the city of Havana for the ceremonial opening on 14 August 2015, at which time the United States flag was raised on Embassy grounds.

Governor Cuomo would likely have gained greater value for New York-based companies had he waited forty-days (40) for the removal of the Republic of Cuba from the Sanctions List (May 2015), then waited a further ninety-days (90) past the re-establishment of formal diplomatic relations for the for the flag-raising on 14 August 2015.

If Governor Cuomo had waited, he could have been the first governor to enter the United States Embassy in Havana in more than fifty (50) years. That’s a deserving newspaper front page image.

Upon completion of the May 2015 through August 2015 events, the government of the Republic of Cuba would have encountered fewer sector-specific impediments to implement agreements with New York-based companies (entities); and the governor would have been a more forceful advocate on behalf of a larger delegation of New York State-based companies (entities) brought together through a more inclusive and expressive process.

LINK TO COMPLETE 12-PAGE VISIT ANALYSIS

The White House Updates This Morning Its Statement About Cuba's 8th Communist Party Congress

UPDATE: At 9:30 am on 17 April 2021, a Senior Administration Official provided by email the following statement in response to this question: "May I have whatever information Ms. Psaki or a representative shared subsequently with the reporter who asked the question?"

"It is for the Cuban people to speak to the results of the party congress. The United States is focused on democracy, human rights, and empowering the Cuban people to determine their own future. We are currently reviewing policy toward Cuba, and have nothing further to announce at this time. Our administration will engage directly with a large swath of Cuban civil society; our policies will be designed to empower them and recognize their leadership on these issues, and we will directly engage the Cuban government on issues across the board, including denouncing abuses and pushing for reforms."

The White House
Washington DC
16 April 2021

Press Briefing By Press Secretary Jen Psaki

Q No. So there's kind of a historic moment that's playing out in Cuba, in terms of Castro stepping down from the Communist Party and a moving -- a changing of the guard, in terms of the Castro family moving on and new leadership. Do you have any reaction to that? And why haven't we seen anything from the President as far as sanctions are concerned?

MS. PSAKI: Well, broadly speaking, our policy, as it relates to Cuba, is going to be governed by two principles. Support for democracy and human rights will be at the core of our efforts, through empowering and -- empowering the Cuban people to determine their own future. And second, our belief that Americans, especially Cuban Americans, are the best ambassadors for freedom and prosperity. A Cuba policy shift or additional steps is currently not among the President's top foreign policy priorities. But it is an issue, of course, we will remain engaged in and focused on. And I can see if there's more of a reaction to that change in leadership. Absolutely.

The White House Repeats Previous Statements About Cuba- It's [Still] Not A Priority

The White House
Washington DC
16 April 2021

Press Briefing By Press Secretary Jen Psaki

Q No. So there's kind of a historic moment that's playing out in Cuba, in terms of Castro stepping down from the Communist Party and a moving -- a changing of the guard, in terms of the Castro family moving on and new leadership. Do you have any reaction to that? And why haven't we seen anything from the President as far as sanctions are concerned?

MS. PSAKI: Well, broadly speaking, our policy, as it relates to Cuba, is going to be governed by two principles. Support for democracy and human rights will be at the core of our efforts, through empowering and -- empowering the Cuban people to determine their own future. And second, our belief that Americans, especially Cuban Americans, are the best ambassadors for freedom and prosperity. A Cuba policy shift or additional steps is currently not among the President's top foreign policy priorities. But it is an issue, of course, we will remain engaged in and focused on. And I can see if there's more of a reaction to that change in leadership. Absolutely.

UPDATE: At 9:30 am on 17 April 2021, a Senior Administration Official provided by email the following statement in response to this question: "May I have whatever information Ms. Psaki or a representative shared subsequently with the reporter who asked the question?"

"It is for the Cuban people to speak to the results of the party congress. The United States is focused on democracy, human rights, and empowering the Cuban people to determine their own future. We are currently reviewing policy toward Cuba, and have nothing further to announce at this time. Our administration will engage directly with a large swath of Cuban civil society; our policies will be designed to empower them and recognize their leadership on these issues, and we will directly engage the Cuban government on issues across the board, including denouncing abuses and pushing for reforms."

EC/EU May Today Find End Of “Comity” By United States Courts. After One Year Waiting, EC/EU May Have Run Out Of Time.

EC/EU May Today Find End Of “Comity” By United States Courts
After One Year Waiting, EC/EU May Have Run Out Of Time
Will Answer Be Defend Or Ignore?
If No Defense, Millions Of Dollars Of Judgements Expected Quickly
UK Guidance May Be Model
37 Law Firms Awaiting Answer
List Of EU-Related Lawsuits

Mr. Hermenegildo Altozano, an attorney with Madrid, Spain-based Bird & Bird, to a United States District Court: “On April 15, 2020, I filed an Application for Authorisation under Article 5 paragraph 2 of Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom, on behalf of the Spanish company Iberostar Hoteles y Apartamentos S.L.U. ("Iberostar").”   

The United States District Court hearing the lawsuit filed using Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”) granted the defendant’s Motion to Stay Proceedings and required a status report every thirty days.  

A soon-to-be expected and not unlikely decision by the Brussels, Belgium-based European Commission (EC) on behalf of the twenty-seven members of the Brussels, Belgium-based (EU) would be to authorize EU-based defendants to proceed with their individual and collective defenses in lawsuits filed and lawsuits to be filed.  The EC/EU position could be that until there is a lawsuit verdict, settlement, or judgement, premature for the EC/EU to unilaterally constrict and disarm defendants, particularly as some of the defendants have commenced their defenses and have available assets within the United States that could be subject to the execution of a judgement from a court. 

For the EC/EU to resolve its twenty-five-year issue with the exterritorial application of Title III of the Libertad Act, at least one of the lawsuits need result in a verdict against an EU-based defendant and the plaintiff need to have seized an asset of the defendant.  Only then will the EC/EU have the full implementation of Title III and the result of Title III from which to defend its interests- both in courts throughout the world and in its bilateral relationship with the United States- currently represented by the [Joseph] Biden Administration.  

The Trump Administration on 2 May 2019 made operational Title III of the Libertad Act which authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Thirty-six (36) Libertad Act Title III lawsuits have been filed in United States District Courts.  Some of the lawsuits have since been appealed, consolidated, dismissed, refiled, reversed, and transferred within districts and from district to district.  Some defendants have been dismissed, but cases continue with other defendants.   

EU-based defendants total 2019 revenues were US$158 Billion.  EU-based defendants in Libertad Act Title III lawsuits include: Copenhagen, Denmark-based A.P. Moller-Maersk A/S (2019 revenue approximately US$39 billion); Paris, France-based BNP Paribas (2019 revenue approximately US$49 billion); Amsterdam, Netherlands-based Booking.com B.V. (2019 revenue approximately US$15 billion); Palma, Spain-based Iberostar Hoteles y Apartamentos S.L. (2019 revenue approximately US$2.6 billion); Palma, Spain-based Melia Hotels International S.A. (2019 revenue approximately US$2 billion); Paris, France-based Pernod Ricard S.A. (2019 revenue approximately US$10.5 billion); Paris, France-based Société Générale S.A. (2019 revenue approximately US$27.4 billion); and Dusseldorf, Germany-based Trivago GmbH (2019 revenue approximately US$940 million).  Additional lawsuits are expected to be filed.  Madrid, Spain-based NH Hotel Group S.A. (2019 revenues approximately US$1.9 billion) was a defendant in a lawsuit, but the lawsuit was dismissed by the plaintiff. 

A diplomatic challenge for EC President von der Leyen and EC HRVP Borrell Fontelles.  President von der Leyen served in three cabinet positions and was the longest serving member of Chancellor Angela Merkel’s cabinet; and Libertad Act Title III defendant Trivago GmbH is headquartered in Germany.  HRVP Borrell Fontelles was Minister of Foreign Affairs, EU and Cooperation of the Kingdom of Spain; and Libertad Act Title III defendants Melia Hotels International S.A. and Iberostar Hoteles y Apartamentos S.L. are both headquartered in Spain.    

The EC/EU is expecting that United States Courts will be differential to the EC/EU due to the impact of the pandemic in 2020 and thus far in 2021, and due to the uniqueness of the request by defendants to the EC:  First, the request requires addressing a statue enacted in 1996 which remained inactive until 2019 due to annual six-month suspensions by the Clinton Administration (1993-2001), Bush Administration (2001-2009), Obama Administration (2009-2017) and through the first half of the Trump Administration (2017-2021) and Second, the EC, as the administrative body of the twenty-seven member EU, needs to consult all members prior to providing an answer.  15 April 2021 is one year since an attorney representing Iberostar Hoteles y Apartamentos S.L. wrote to the EC requesting guidance as to how to proceed with its defense.     

For the thirty-six lawsuits filed since May 2019 United States Courts have been patient to provide plaintiffs and defendants with latitude and opportunity to fully present their positions.  Many of the lawsuits involve complicated issues including who has standing to file a lawsuit, when was the claim obtained, and sovereign immunity, among others.   

United States Courts might provide one final thirty-day stay before permitting the plaintiffs to continue with their lawsuits.  Plaintiffs have continued to argue that they are afforded a prompt and speedy process and one year is far too long- particularly when the government of the United Kingdom (which was a member of the EU when “trafficking” allegations took place) required approximately five months to provide guidance to Libertad Act Title III lawsuit defendant Bristol, United Kingdom-based Imperial Brands plc (2019 revenues approximately US$40 billion).  LINK https://www.cubatrade.org/blog/2021/3/19/uk-government-authorizes-imperial-brands-to-defend-itself-in-libertad-act-lawsuit-eu-based-defendants-continue-to-wait-for-guidance?rq=imperial 

LINK To Libertad Act Title III Lawsuit Statistics 

The following Libertad Act Title III lawsuits have included defendants whose headquarters are located within EU-member countries:

MARIA DOLORES CANTO MARTI, AS PERSONAL REPRESENTATIVE OF THE ESTATES OF DOLORES MARTI MERCADE AND FERNANDO CANTO BORY V. IBEROSTAR HOTELES Y APARTAMENTOS SL [1:20-cv-20078; Southern Florida District]

Zumpano Patricios P.A. (plaintiff)
Bird & Bird (defendant)
Holland & Knight (defendant)

LINK To Filing: https://www.cubatrade.org/blog/2021/3/31/5bwdppnioq78zadaro67r3pvk7hr8l

ODETTE BLANCO DE FERNANDEZ née BLANCO ROSELL; EMMA RUTH BLANCO, in her personal capacity, and as Personal Representative of the ESTATE OF ALFREDO BLANCO ROSELL, JR; HEBE BLANCO MIYARES, in her personal capacity, and as Personal Representative of the ESTATE OF BYRON BLANCO ROSELL; SERGIO BLANCO DE LA TORRE, in his personal capacity, and as Administrator Ad Litem of the ESTATE OF ENRIQUE BLANCO ROSELL; EDUARDO BLANCO DE LA TORRE, as Administrator Ad Litem of the ESTATE OF FLORENTINO BLANCO ROSELL; LIANA MARIA BLANCO; SUSANNAH VALENTINA BLANCO; LYDIA BLANCO BONAFONTE; JACQUELINE M. DELGADO; BYRON DIAZ BLANCO, JR.; MAGDELENA BLANCO MONTOTO; FLORENTINO BLANCO DE LA TORRE; JOSEPH E. BUSHMAN; CARLOS BLANCO DE LA TORRE; and GUILLERMO BLANCO DE LA TORRE VERSUS A.P. MOLLER-MAERSK A/S (a/k/a A.P. MOLLER-MAERSK GROUP); MAERSK A/S (a/k/a MAERSK LINE A/S); MAERSK, INC.; and MAERSK AGENCY U.S.A., INC [2:21-cv-00339 Eastern District of Louisiana]

Pusateri, Johnston, Guillot & Greenbaum, LLC (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields PLLC (plaintiff)

JUAN B. PUJOL MOREIRA, in his personal capacity, and as Personal Representative and Administrator of the ESTATE OF NIEVES PUJOL, a/k/a NIEVES MOREIRA MARTINEZ, MARIA JULIA PUJOL MOREIRA, INES MARIA PUJOL FAGET, as Personal Representative and Executor of the ESTATE OF ARCADIO JOAQUIN PUJOL IZQUIERDO, SARA L. PUJOL, as Personal Representative and Administrator of the ESTATE OF LAUREANO PUJOL ROJAS, LUIS R. PUJOL ROJAS, ANA H. FRAGA, LORENZO PEREZ PUJOL, FRANCISCO PUJOL MENESES, PILAR M. PUJOL MENESES, and RAUL PUJOL MENESES, Plaintiffs, v. SOCIETE GENERALE, S.A. and BNP PARIBAS, S.A. [1:20-cv-09380; Southern District Of New York]

Kozyak Tropin & Throckmorton, LLP (plaintiff)
MoloLamken LLC (plaintiff)

OSVALDO SOTO V. BOOKING.COM B.V. AND BOOKING HOLDINGS INC. [1:20-cv-24044; Southern Florida District]

Rivero Mestre LLP (plaintiff)
Manuel Vazquez PA (plaintiff)

JOHN S. SHEPARD FAMILY TRUST, THROUGH JOHN S. SHEPARD AND LAWRENCE JAFFE, AS CO-TRUSTEES, V. NH HOTELS USA, INC., NH HOTEL GROUP, S.A., AND JOLLY HOTELS U.S.A., INC. [1-19-cv-09026; Southern District New York]. Case dismissed by plaintiff without prejudice on 26 February 2020.

Aronovitz Law (plaintiff)
Kantrowitz, Goldhamer, & Graifman (plaintiff)
Bracewell (defendant)
Bird & Bird (defendant)
Law Offices of Robert L. Muse (defendant)

SUCESORES DE DON CARLOS NUNEZ Y DONA PURA GALVEZ, INC., BDA BANO NUNEZ V. SOCIÉTÉ GÉNÉRALE, S.A., D/B/A SG AMERICAS, INC.; THE BANK OF NOVA SCOTIA, D/B/A SCOTIA HOLDINGS (US) INC., A/K/A THE BANK OF NOVA SCOTIA, MIAMI AGENCY; THE NATIONAL BANK OF CANADA, D/B/A NATIONAL BANK OF CANADA FINANCIAL GROUP, INC.; AND BANCO BILBAO VIZCAYA ARGENTARIA, S.A., D/B/A BBVA, USA., [1:19-cv-22842; Southern Florida District]. NOTE: Case transferred to New York Southern District On 2 February 2020 [1:20-cv-00851]. Current defendants Societe Generale, S.A. and BNP Paribas, S.A.

Kozyak Tropin & Throckmorton, LLP (plaintiff)
Law Offices Of Paul Sack P.A. (plaintiff)
MoloLamken LLC (plaintiff)
Cleary Gottlieb Steen & Hamilton (defendant)
Mayer Brown LLP (defendant)
Reed Smith LLP (defendant)
Astigarraga Davis Mullins & Grossman (defendant)

DIEGO TRINIDAD v. EXPEDIA, INC., HOTELS.COM L.P., HOTELS.COM GP, LLC, ORBITZ, LLC, BOOKING.COM B.V., BOOKING HOLDINGS INC. [1:19-cv-22629; Southern Florida District] Case dismissed with leave to amend on 16 November 2020.

Rivero Mestre (plaintiff)
Manuel Vazquez (plaintiff)
Akerman LLP (defendant- Expedia Group, Inc., Expedia, Inc.)
Scott Douglass & McConnico LLP (defendant- terminated 2/12/20))
Baker & McKenzie (defendant- Booking Holdings, Inc., Booking.com B.V.)

MARICELA MATA, ET. AL., V. MELIA HOTELS INTERNATIONAL, S.A., ET AL. [1:19-cv-22529; Southern Florida District]. NOTE: On 2 January 2020, thirty-five plaintiffs were dismissed, and eight defendants were dismissed without prejudice Melia Hotels International, S.A.; Melia Hotels USA LLC, Trivago GMBH, Grupo Hotelero Gran Caribe, Corporacion de Comercio y Turismo Internacional Cubanacan S.A.; Grupo de Turismo Gaviota S.A.; Raul Doe 1-5, and Mariela Roe 1-5. The case is now known as Maricela Mata, et al. v. Expedia, Inc., et. al.

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Arent Fox (defendant- Melia Hotels)
Coffey Burlington, P.P. (defendant- Melia Hotels)
Akerman LLP (defendant) for Expedia, Inc.; Hotels.com L.P.; Hotels.com GP, LLC; Orbitz, LLC; and Travelocity.com, LP
Scott Douglass & McConnico LLP (defendant) for Expedia, Inc.; Hotels.com L.P.; Hotels.com GP, LLC; Orbitz, LLC; and Travelocity.com, LP
Baker & McKenzie LLP (defendant) for Booking Holdings Inc. and Booking.com B.V.

ROBERT M. GLEN V. EXPEDIA GROUP, INC., EXPEDIA GROUP, INC., TRIP ADVISOR LLC, TRIP ADVISOR, INC., ORBITZ, LLC, TRIP NETWORK, INC. D/B/A CHEAPTICKETS, KAYAK SOFTWARE CORPORATION, BOOKING HOLDINGS, INC., HOTELS.COM GP, LLC, HOTELS.COM L.P., TRAVELSCAPE LLC D/B/A TRAVELOCITY [1:19-cv-01809; Delaware District]

Reid Collins & Tsai (plaintiff)
Rosenthal, Monhait & Goddess, P.A. (plaintiff; law firm since closed; replaced by Andrews & Springer)
Ewusiak Law, P.A. (plaintiff)
Andrews & Springer (plaintiff)
Morris, Nichols, Arsht & Tunnell (defendant- Booking Holdings & Kayak Software Corporation)
Baker & McKenzie (defendant- Booking Holdings & Kayak Software Corporation)
Scott Douglass & McConnico (defendant- Expedia, Inc.; Expedia Group, Inc.; Hotels.com, L.P.; Hotels.com GP, LLC; Travelscape LLC d/b/a/ Travelocity; Orbitz, LLC; Trip Network, Inc. d/b/a/ Cheap Tickets)
Potter Anderson & Corroon (defendant- TripAdvisor)
Ballard Spahr LLP (defendant- Expedia, Inc.; Expedia Group, Inc.; Hotels.com, L.P.; Hotels.com GP, LLC; Travelscape LLC d/b/a/ Travelocity; Orbitz, LLC; Trip Network, Inc. d/b/a/ Cheap Tickets)
Cooch & Taylor, P.A. (amicus)

MARIO ECHEVARRIA, ESTHER SANCHEZ, CONSUELO CUEVAS, AND CARMEN FLORIDO V. EXPEDIA, INC., TRIVAGO GMBLJ, A GERMAN LIMITED LIABILITY COMPANY, BOOKING.COM B.V., A DUTCH LIMITED LIABILITY COMPANY, GRUPO HOTELERO GRAN CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE 1-5, AND MARIELA ROE 1-5, [1:19-cv-22620; Southern Florida District]. Lawsuit dismissed with leave to amend on 16 November 2020.

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Baker & McKenzie (defendant- Booking Holdings, Inc., Booking.com B.V.)
Scott Douglas & McConnico LLP (defendant- Expedia, Inc., Hotels.com GP, LLC, Hotels.com L.P., Orbitz, LLC)
Akerman LLP (defendant- Expedia, Inc., Hotels,com GP, LLC, Hotels.com L.P., Orbitz, LLC)

MARIO ECHEVARRIA, ESTHER SANCHEZ, CONSUELO CUEVAS, AND CARMEN FLORIDO V. EXPEDIA, INC., HOTELS.COM L.P., HOTELS.COM GP, LLC, ORBITZ, LLC, BOOKING.COM B.V., AND BOOKING HOLDINGS, INC. Initial defendants were: TRIVAGO GMBH, BOOKING.COM B.V., GRUPO HOTELERO GRAN CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE I-5, AND MARIELA ROE 1-5, [1:19-cv-22621; Southern Florida District]. Lawsuit dismissed with leave to amend on 16 November 2020.

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Baker & McKenzie, LLP (defendant- Booking Holdings, Booking.com. B.A.)

MARIO DEL VALLE, ENRIQUE FALLA, MARIO ECHEVARRIA V. EXPEDIA, INC., HOTELS.COM L.P., HOTELS.COM GP, ORBITZ, LLC, BOOKING.COM B.V., BOOKING HOLDINGS INC. Initial defendants were: TRIVAGO GMBH, BOOKING.COM B.V., GRUPO HOTELERO GRAN CARIBE, CORPORACION DE COMERCIO Y TURISMO INTERNACIONAL CUBANACAN S.A., GRUPO DE TURISMO GAVIOTA S.A., RAUL DOE I-5, AND MARIELA ROE 1-5, [1:19-cv-22619 Southern Florida District; 20-12407 11th Circuit Court of Appeals]

Rivero Mestre LLP (plaintiff)
Manuel Vazquez, P.A. (plaintiff)
Baker & McKenzie, LLP (defendant)
Scott Douglass & McConnico (defendant)
Akerman (defendant)

MARLENE CUETO IGLESIAS AND MARIAM IGLESIAS ALVAREZ V. PERNOD RICARD [1:20-cv-20157; Southern Florida District]

IPS Legal Group, P.A. (plaintiff)
Law Offices of Andre G. Raikhelson LLC (plaintiff)
Ainsworth & Clancy PLLC (plaintiff)
Carlton Fields P.A. (defendant)
Carlton Fields Jorden Burt, P.A. (defendant)

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

Second Visit In Three Weeks- U.S. Secretary Of State To Brussels. EC Writes It Will "Address" Cuba. Did Not Last Time. EU Defendants Waiting One Year For Guidance.

This Week Secretary Of State Blinken Again Visits Brussels
15 February 2021- EP Member Wrote EC VP About Cuba
24 March 2021- EC President, VP Met With Secretary Blinken- Cuba Not Discussed
29 March 2021- EC VP Replied To EP Member He Would “Address” Cuba With Biden Administration
Will EC VP Now Address Cuba With Secretary Blinken?
15 April 2021 Is One Year Since EU-Based Libertad Act Lawsuit Defendant Asked EC For Guidance
Will Guidance Be Announced This Week?

From United States Department of State: “Secretary of State Antony J. Blinken will travel to Brussels, Belgium April 13-15 [2021].  In Brussels, Secretary Blinken will join Secretary of Defense Lloyd Austin to consult with our NATO Allies and partners on a range of shared priorities.  The Secretary will take this opportunity to reaffirm the U.S. commitment to the Transatlantic alliance as a critical partnership for achieving our mutual goals.  Separately, Secretary Blinken will hold bilateral and multilateral meetings with European counterparts to discuss key priorities and shared challenges.” The Honorable Philip Reeker, Acting Assistant Secretary of State for European and Eurasian Affairs, will accompany Secretary Blinken to Brussels this week. 

Since 20 January 2021, officials representing the Biden Administration (The White House and United States Department of State) have continued to maintain that issues relating to the Republic of Cuba are not a priority. 

Undisclosed is whether Secretary Blinken will meet this week with Brussels, Belgium-based European Commission (EC) President Ursula von der Leyen and Brussels, Belgium-based European Union (EU) High Representative for Foreign Affairs and Security Policy and European Commission Vice President Josep Borrell Fontelles.  

On 24 March 2021, Secretary Blinken held separate meetings with President von der Leyen and HRVP Josep Borrell Fontelles.  According to a spokesperson for the EU: “In their meeting, the HRVP [Josep Borrell Fontelles] and Secretary of State discussed Venezuela, and they agreed to work together in a coordinated approach. Cuba was not discussed on this occasion.”  The EU spokesperson did not confirm if the Republic of Cuba, Title III and Title IV of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”), and/or Venezuela was discussed during the meeting between President von der Leyen and Secretary Blinken.  The subjects were not referenced in remarks by President von der Leyen and Secretary Blinken in advance of their meeting.  

There is a possibility the Republic of Cuba and Libertad Act were discussed during the 24 March 2021 meetings in Brussels between lower-level officials of the EC/EU and United States Department of State.  There is also a possibility the United States Department of State and EC/EU jointly agreed in advance to exclude the Republic of Cuba and Libertad Act from the official agendas; that the United States Department of State refused to include the Republic of Cuba and Libertad Act in the official agendas; and that the Republic of Cuba and Libertad Act were discussed outside of the official agendas.  

What is known- despite statements from the EC/EU and member states of the EU that the Libertad Act remains since 1996 a material issue impacting the bilateral relationship with the United States; and since May 2019 when Title III of the Libertad Act was made operational by the Trump Administration ten EU-based companies became defendants in lawsuits filed in the United States, the Libertad Act was not material enough to be included in the agenda for the first visit to the EC/EU by the Secretary of State. 

On 29 March 2021, HRVP Borrell responded to an inquiry from Mr. Javier Moreno Sanchez, a member of the Strasbourg, France-based European Parliament (EP) who is a member of the “Group of Friendship and Solidarity with the People of Cuba.”  The response from HRVP Borrell was inaccurately publicized as an agreement by Mr. Borrell to “mediate” rather than “address” the issue with the United States:  Dear Members of the European Parliament, Thank you for your letter of 15 February on the designation of Cuba as a state sponsor of terrorism by the previous US administration. As I have stated to Foreign Minister Rodriguez at the EU-Cuba Joint Council on 20 January, the EU rejects this designation. The decision taken by the previous US administration has no factual basis, given the positive role Cuba has played in the peace negotiations between the Colombian government and the National Liberation Army (Ejercito de Liberacion Nacional, ELN). The ELN members were in Cuba as part of the now aborted peace negotiations with the Colombian government, having travelled there at the request of the Colombian government for the negotiation process, which has had the full support of the EU. As I have indicated in my statement referred to above (1), this designation adds to the hardship caused to the Cuban people by the US embargo. In our contacts with the new US administration, we will address this issue and call on the US to lift this designation. Yours faithfully, Josep Borrell Fontelles 

Thursday Marks One Year 

Mr. Hermenegildo Altozano, an attorney with Madrid, Spain-based Bird & Bird, to a United States District Court: “On April 15, 2020, I filed an Application for Authorisation under Article 5 paragraph 2 of Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom, on behalf of the Spanish company Iberostar Hoteles y Apartamentos S.L.U. ("Iberostar").”  The United States District Court hearing the lawsuit granted the defendant’s Motion to Stay Proceedings and required a status report every thirty days.  LINK To Libertad Act Lawsuit Statistics  

EU-based defendants total 2019 revenues were US$158 Billion.  EU-based defendants in Libertad Act Title III lawsuits include: Copenhagen, Denmark-based A.P. Moller-Maersk A/S (2019 revenue approximately US$39 billion); Paris, France-based BNP Paribas (2019 revenue approximately US$49 billion); Amsterdam, Netherland-based Booking.com B.V. (2019 revenue approximately US$15 billion); Palma, Spain-based Iberostar Hoteles y Apartamentos S.L. (2019 revenue approximately US$2.6 billion); Palma, Spain-based Melia Hotels International S.A. (2019 revenue approximately US$2 billion); Paris, France-based Pernod Ricard S.A. (2019 revenue approximately US$10.5 billion); Paris, France-based Société Générale S.A. (2019 revenue approximately US$27.4 billion); and Dusseldorf, Germany-based Trivago GmbH (2019 revenue approximately US$940 million).  Additional lawsuits are expected to be filed.  Madrid, Spain-based NH Hotel Group S.A. (2019 revenues approximately US$1.9 billion) was a defendant in a lawsuit, but the lawsuit was dismissed by the plaintiff. 

A diplomatic challenge for President von der Leyen and HRVP Borrell Fontelles.  H.E. Dr. von der Leyen served in three cabinet positions and was the longest serving member of Chancellor Angela Merkel’s cabinet; and Libertad Act Title III defendant Trivago GmbH is headquartered in Dusseldorf, Germany.  HRVP Borrell Fontelles was Minister of Foreign Affairs, EU and Cooperation of the Kingdom of Spain; and Libertad Act Title III defendants Melia Hotels International S.A. and Iberostar Hoteles y Apartamentos S.L. are both headquartered in Palma, Spain.    

A soon-to-be expected and not unlikely decision by the EC and EU would be to authorize EU-based defendants to proceed with their individual and collective defenses in lawsuits filed and lawsuits to be filed.  The EC/EU position could be that until there is a lawsuit verdict, settlement, or judgement, premature for the EC/EU to unilaterally constrict and disarm defendants, particularly as some of the defendants have commenced their defenses and have available assets within the United States that could be subject to the execution of a judgement from a court. 

For the EC/EU to resolve its issue with the exterritorial application of Title III of the Libertad Act, at least one of the lawsuits need result in a verdict against an EU-based defendant and the plaintiff need to have seized an asset of the defendant.  Only then will the EC/EU have the full implementation of Title III and the result of Title III from which to defend its interests- both in courts throughout the world and in its bilateral relationship with the United States- currently represented by the [Joseph] Biden Administration.  

The Biden Administration has four reviews underway relating to the Republic of Cuba: 1) comprehensive policy review led by the National Security Council (NSC) and United States Department of State with a focus upon what changes should be made to policies and regulations implemented during the Trump Administration (2017-2021) including whether to nominate a United States Ambassador to the Republic of Cuba 2) reviews led by the Central Intelligence Agency (CIA) and United States Department of State into the cause(s) of injuries to United States government employees in 2016/2017 while they were in the Republic of Cuba 3) whether to suspend again Title III of the Libertad Act and 4) whether to remove the Republic of Cuba from the State Sponsors of Terrorism List maintained by the United States Department of State.    

Absent a crisis in the Republic of Cuba directly impacting the United States, there has been no demonstrated urgency for completing the four reviews.  

Next Week 

During the 16 April 2021 to 19 April 2021 Eighth Congress of the Communist Party of the Republic of Cuba, H.E. Miguel Diaz-Canel, President of the Republic of Cuba will be elected as First Secretary, replacing H.E. General Raul Castro, who has served in the position since 19 April 2011 and served as President of the Republic of Cuba from 2008-2018).  President Diaz-Canel is sixty years of age- and will be sixty-one on 20 April 2021.  Former President Castro is eighty-nine years of age. 

Libertad Act Background 

The Trump Administration has made operational Title III and further implemented Title IV of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). 

Title III authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.   

Title IV restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims.  One Canada-based company and one Spain-based company are currently known to be subject to this provision based upon a certified claim and non-certified claim. 

Libertad Act Suspension History 

Title III has been suspended every six months since the Libertad Act was enacted in 1996- by President William J. Clinton, President George W. Bush, President Barack H. Obama, and President Donald J. Trump. 

On 16 January 2019, The Honorable Mike Pompeo, United States Secretary of State, reported a suspension for forty-five (45) days.
On 4 March 2019, Secretary Pompeo reported a suspension for thirty (30) days.
On 3 April 2019, Secretary Pompeo reported a further suspension for fourteen (14) days through 1 May 2019.
On 17 April 2019, the Trump Administration reported that it would no longer suspend Title III.
On 2 May 2019 certified claimants and non-certified claimants were permitted to file lawsuits in United States courts.

Certified Claims Background 

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s).  The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims US$8.7 billion.  

The first asset (along with 382 enterprises the same day) to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).  

From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959.  Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials.  Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851.  The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.” 

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba.  The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc.  The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust. 

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims.  Thirty (30) certified claimants hold 56% of the total value of the certified claims.  This concentration of value creates an efficient pathway towards a settlement.   

The ITT Corporation Agreement:  In July 1997, then-New York City, New York-based ITT Corporation and then-Amsterdam, the Netherlands-based STET International Netherlands N.V. signed an agreement whereby STET International Netherlands N.V. would pay approximately US$25 million to ITT Corporation for a ten-year right (after which the agreement could be renewed and was renewed) to use assets (telephone facilities and telephone equipment) within the Republic of Cuba upon which ITT Corporation has a certified claim valued at approximately US$130.8 million.  ETECSA, which is now wholly-owned by the government of the Republic of Cuba, was a joint venture controlled by the Ministry of Information and Communications of the Republic of Cuba within which Amsterdam, the Netherlands-based Telecom Italia International N.V. (formerly Stet International Netherlands N.V.), a subsidiary of Rome, Italy-based Telecom Italia S.p.A. was a shareholder.  Telecom Italia S.p.A., was at one time a subsidiary of Ivrea, Italy-based Olivetti S.p.A.  The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International. 

LINK TO COMPLETE ANALYSIS IN PDF FORMAT

U.S. Secretary Of State Telegraphs Biden Administration Themes For Policies Towards Cuba. Will The Themes Match The Decisions?

United States Department of State
Washington DC
9 April 2021

Elections in the Western Hemisphere
Antony J. Blinken, Secretary of State
(bold added)

On behalf of the people of the United States, I wish the citizens of Bolivia, Ecuador, and Peru successful elections on April 11 that are fair, free, accessible, and peaceful.

As we strive to protect and strengthen democracies, we must recognize that free and fair elections for all citizens are only one step in the process; respect for results, fundamental freedoms, and accountability must accompany the free and fair vote. Democracy flourishes when citizens and governments actively promote equality under the law and human rights for all, and democracy thrives when we carefully and vigorously tend to such fundamentals. History here in the Americas and beyond has shown that societies that follow a non-democratic path struggle to reclaim lost ground. To avoid that, we all must remain vigilant in strengthening our democratic institutions to support the rule of law, a free press, and good governance, and build systems that solve the problems and move us towards a better future.

Twenty years ago this September, the nations of the Americas gathered in Lima to sign the Inter-American Democratic Charter which affirms that, “democracy is a way of life based on liberty and enhancement of economic, social, and cultural conditions for the peoples of the Americas.” Our best regards to those celebrating and preserving that democratic way of life this Sunday and beyond.

To CNN From Juan Gonzalez, Senior Director- WHA At National Security Council: "Joe Biden is not Barack Obama in policy towards Cuba,...""

CNN
Atlanta, Georgia
8 April 2021

Joe Biden is not Barack Obama in Cuba policy and there will be no dialogue with Nicolás Maduro, according to a senior White House official

Juan Gonzalez is Special Assistant to the President and Senior Director for the Western Hemisphere at the National Security Council (NSC) in The White House

By Juan Carlos López

(CNN Spanish) - Juan Gonzalez, assistant to President Joe Biden and principal director for the Western Hemisphere of the National Security Council of the White House, said in an interview with CNN that a process of rapprochement with the Government of Cuba would be gradual and not they hope to resume Barack Obama's policy towards the island.

“Joe Biden is not Barack Obama in policy towards Cuba, I believe that both of them… the political moment has changed in an important way, the political space has closed a lot, because the Cuban government has not responded in any way, and in fact the oppression against Cubans is even worse today than perhaps it was during the Bush administration. So, I believe that at this time those are the commitments that have been made, they will be made in some moments, we are very focused on various crises around the world, and also on the domestic situation,” the official explained.

The senior director of the National Security Council for the Western Hemisphere, Juan González, talks to @jclopezcnn about Cuba and Venezuela. He assures that "the oppression against Cubans is even worse today than perhaps it was during the Bush administration." Today 5 P.M. (Miami). pic.twitter.com/wDm5iu9YHx - CNN in Spanish (@CNNEE) April 8, 2021

In 2014, then-President Barack Obama announced the start of a process to normalize relations with Cuba. In 2016, with Donald Trump in power, the White House changed focus and reinstated various sanctions against the island's government. At the beginning of his term, Biden still does not give signals to resume the diplomatic rapprochement of the Obama era.

González: They will increase sanctions if Maduro does not make changes.

On the other hand, Gonzalez sent a message to the questioned president of Venezuela, Nicolás Maduro. He does not anticipate direct dialogue by the United States with whoever exercises power in that country: “The conversation that Nicolás Maduro, Jorge Rodríguez should have is not with us, it is with Guaidó, it is with the broad front that he has been trying to form, that includes sectors of civil society, the private sector, on the future of the country. We are not going to impose conditions on that process, it is a totally Venezuelan process.”

LINK To CNN Video Interview

Joe Biden no es Barack Obama en la política hacia Cuba y no habrá dialogo con Nicolás Maduro, según alto funcionario de la Casa Blanca

(CNN Español) — Juan Gonzalez, asistente del presidente Joe Biden y director principal para el Hemisferio Occidental del Consejo de Seguridad Nacional de la Casa Blanca, dijo en entrevista con CNN que un proceso de acercamiento con el Gobierno de Cuba sería gradual y que no esperan retomar la política de Barack Obama hacia la isla.

“Joe Biden no es Barack Obama en la política hacia Cuba, yo creo que los dos… el momento político ha cambiado de forma importante, se ha cerrado mucho el espacio político, porque el gobierno cubano no ha respondido de ninguna forma, y de hecho la opresión en contra de los cubanos es peor aún hoy que tal vez fue durante la administración Bush. Entonces, yo creo que en este momento esos son los compromisos que se han hecho, se harán en algunos momentos, estamos muy enfocados en varias crisis alrededor del mundo, y también en la situación doméstica”, explicó el funcionario.

El director sénior del Consejo de Seguridad Nacional para el hemisferio occidental, Juan González, habla con @jclopezcnn sobre Cuba y Venezuela. Asegura que "la opresión contra los cubanos es peor aún hoy que tal vez fue durante la administración de Bush". Hoy 5 P.M. (Miami). pic.twitter.com/wDm5iu9YHx— CNN en Español (@CNNEE) April 8, 2021

En 2014, el entonces presidente Barack Obama anunció el inicio de un proceso para normalizar relaciones con Cuba. En 2016, con Donald Trump en el poder, la Casa Blanca cambió de enfoque y reinstaló varias sanciones en contra del gobierno de la isla. Al inicio de su mandato, Biden todavía no entrega señales para retomar el acercamiento diplomático de la era Obama.

Por otra parte, Gonzalez envió un mensaje al cuestionado presidente de Venezuela, Nicolás Maduro. No anticipa dialogo directo de Estados Unidos con quien ejerce el poder en ese país: “La conversación que debe tener Nicolás Maduro, Jorge Rodríguez, no es con nosotros, es con Guaidó, es con el frente amplio que él ha estado tratando de formar, que incluye a sectores de la sociedad civil, el sector privado, sobre el futuro del país. Nosotros no le vamos a imponer condiciones a ese proceso, es un proceso totalmente venezolano.”

Cuba Advocates Take Note: U.S. Department Of State Reiterates Importance Of Working With U.S. Congress "on the landing but also at takeoff, also mid-air"

United States Department of State
Washington DC
8 April 2021

Ned Price, Spokesperson
Briefing Excerpt (bold added)

QUESTION: China – I wanted to ask – Senators Menendez and Risch unveiled their comprehensive bipartisan China legislation, the Strategic Competition Act. I haven’t gone all the way through it, but it mentions sanctions a couple dozen times. Is the State Department or the administration involved in working with them on that? Does it approve of this legislation? Is it a good idea for Congress to be setting foreign policy and sanctions rules, or is that something that the administration would prefer to do in consultation with Congress and allies?

MR PRICE: Well, as a general rule, we don’t comment on pending legislation, so I won’t comment on this legislation specifically. What I will say, however, is that we know when it comes to the challenges we face in the world – and of course we have spoken of competition with China as a defining challenge for this administration – that we will enjoy the greatest amount of success when we work hand-in-hand with Congress, and when our proposals find support on both sides of the aisle in Congress, and that when we work closely with Congress on their proposals.

We have been heartened that there is a good deal of bipartisan agreement when it comes to how we should and could approach the government in Beijing, the PRC. This is precisely one of the reasons why, following their consultations, their discussions, I should say, with their Chinese – with their PRC counterparts, National Security Advisor Sullivan and Secretary Blinken met with Alaska’s two Republican senators. We know that any approach to the PRC has to be – has to have bipartisan support. It has to have the support of Congress. It’s precisely why this Secretary has committed to consultations with Congress, as he likes to say, not only on the landing but also at takeoff, also mid-air. And that’s precisely what we’ve been doing, and we look forward to continuing that engagement on China.

QUESTION: Has that engagement begun with the Senate Foreign Relations Committee on China and other issues?

MR PRICE: We have had a number of occasion to – I don’t want to read out specific briefings, but we have had a number of occasions to send briefers from this building to offer insight into our thinking on any number of challenges, to update lawmakers on what it is we’re doing, to seek their ideas on how we could work together to take on challenges. And, of course, as I said before, our approach to the PRC and the competition with China is a defining challenge for this administration.

QUESTION: Ned, just on your takeoff, mid-flight, and landing consultations with Congress, I want to go back to something yesterday, the resumption of aid to the Palestinians. You said, as you were announcing it, that we have been gratified by the bipartisan support or by the reaction that we have had from Congress on a bipartisan basis. What’s the basis for that? I’m – are you aware of a single Republican who has come out in support of this?

MR PRICE: The basis for that, Matt, are reactions we have heard, again, in our consultations with Congress, as you may know – as you may know better than most, given your reporting. We have consulted with Congress and we did consult with Congress on this funding decision.

U.S. Agricultural Commodity And Food Product Exports Increase 45.8% Year-To-Year; Products Include Cocoa, Coffee, Corn Chips

ECONOMIC EYE ON CUBA©
April 2021

February 2021 Food/Ag Exports To Cuba Increase 43.4%- 1
58th Of 213 February 2021 U.S. Food/Ag Export Markets- 2
Year-To-Year Exports Increase 45.8%- 2
Cuba Ranked 56th Of U.S. Ag/Food Export Markets- 2
2021 Healthcare Product Exports US$2,840.00- 2
2021 Humanitarian Donations US$75,650.00- 3
2021 Obama Administration Initiatives Exports Continue- 3
U.S. Port Export Data- 16

FEBRUARY 2021 FOOD/AG EXPORTS TO CUBA INCREASE 43.4%- Exports of food products and agricultural commodities from the United States to the Republic of Cuba in February 2021 were US$21,242,760.00 compared to US$14,809,161.00 in February 2020 and US$27,048,523.00 in February 2019.

February 2021 Exports: Chicken Leg Quarters (Frozen); Chicken Meat (Frozen); Chicken Legs (Frozen); Phosphates; Cocoa Bulk; Roasted Coffee; Fruit Juice; Corn Chips; Rice.

Since December 2001, agricultural commodity and food product exports reported from the United States to the Republic of Cuba is US$6,336,488,733.00.

This report contains information on exports from the United States to the Republic of Cuba- products within the Trade Sanctions Reform and Export Enhancement Act (TSREEA) of 2000, Cuban Democracy Act (CDA) of 1992, and regulations implemented (1992 to present) for other products by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury and Bureau of Industry and Security (BIS) of the United States Department of Commerce.

The TSREEA re-authorized the direct commercial (on a cash basis) export of food products (including branded food products) and agricultural commodities from the United States to the Republic of Cuba, irrespective of purpose. The TSREEA does not include healthcare products, which remain authorized and regulated by the CDA.

COMPLETE REPORT IN PDF FORMAT

For Anyone Expecting Washington Rapprochement With Havana, Biden Administration Answers To Question About Status Of Cuba Ambassador To U.S. Shows Chill & Toxicity

For Anyone Expecting Washington Rapprochement With Havana, Biden Administration Answers To Question About Status Of Cuba Ambassador To U.S. Shows Chill & Toxicity  

QUESTION- 31 March 2021 

H.E. Lianys Torres Rivera, former Ambassador of the Republic of Cuba to Vietnam, arrived to the United States in early January 2021 during the Trump Administration.  Ambassador Torres has been designated by the government of the Republic of Cuba as its Ambassador of the Republic of Cuba to the United States.  When will the Biden Administration accept the credentials of Ambassador Torres as Ambassador of the Republic of Cuba to the United States?  

ANSWERS- 1 April 2021 

State Department Spokesperson: “The U.S. and Cuba continue to maintain diplomatic relations.  We refer questions about the status of Cuban diplomats to the Cuban government.  We have no comment beyond that.” 

White House Spokesperson: No Response. 

As of 17 February 2021, the Order of Precedence Reported to the Office of the Chief of Protocol at the United States Department of State lists H.E. Lianys Torres Rivera as Charge d’Affaires ad Interim For Bilateral Missions with a date 1/14/21- the last entry prior to the end of the Trump Administration.  Ambassador Torres is not included among those identified as Ambassador Extraordinary And Plenipotentiary.  Since 20 January 2021, there are listed three (3) Charge d’Affaires Ad Interim For Bilateral Missions: Montenegro (2/4/21), Estonia (2/9/21), and Mexico (2/17/21).   

According to the United States Department of State, since 20 January 2021, there are seven (7) individuals who have presented (in-person or virtually) their credentials to the President of the United States- all on the same day. Thailand (2/17/21), Tajikistan (2/17/21), Bangladesh (2/17/21), Oman (2/17/21), Japan (2/17/21), Israel (2/17/21), and Nepal (2/17/21).   

The Republic of Cuba has not in public shared comments as to the status of Ambassador Torres.  Perhaps the Miguel Diaz-Canel Administration believes it gains goodwill from the Biden Administration by not creating an issue relating to the status of Ambassador Torres- to the relief of the Biden Administration which appreciates the presentation of her credentials would likely result in criticism from at least one governor (The Honorable Ron DeSantis, R-Florida) and probably the ten members of the 117th United States Congress who are of Cuban descent.   

United States Senate: The Honorable Ted Cruz (R- Texas), The Honorable Marco Rubio (R- Florida), The Honorable Robert Menendez (D- New Jersey).  Senator Menendez is Chairman of the United States Senate Committee on Foreign Relations. 

United States House of Representatives: The Honorable Albio Sires (New Jersey; D- 8th), The Honorable Alex Mooney (West Virginia; R- 2nd), The Honorable Anthony E. González (Ohio; R- 16th), The Honorable Mario Díaz-Balart (Florida; R-25th), The Honorable Carlos Gimenez (Florida; R- 26th), The Honorable Maria Elvira Salazar (Florida; R- 27th) and The Honorable Nicole Malliotakis (New York; R- 11th).  Representative Sires is Chairman of the Western Hemisphere, Civilian Security, Migration And International Economic Policy Subcommittee of the Committee on Foreign Affairs of the United States House of Representatives. 

What may be instructive is the greater importance to the Biden Administration towards those who will likely criticize any reversal of Trump Administration (2017-2021) decisions relating to the Republic of Cuba rather than support those decisions may receive from Democratic Party members of the United States Congress. 

For the Biden Administration which has legislative initiatives, nominations, a budget, and increase in the debt ceiling among items requiring approval during 2021 from the United States Congress, the safe track is to do nothing relating to the Republic of Cuba.  In addition, there are the 2021 mid-term elections where redistricting due to the 2020 Census will result in the creation of Republican-leaning Congressional Districts in the State of Florida and State of Texas, among others.  The Republican Party could control the 118th United States Congress, or at least one of the two legislative chambers.  This forecast means the Biden Administration will require votes for its legislative agenda and inserting the Republic of Cuba into the calculus could become problematic, or even toxic.

Due to the pandemic, since 2020 the Republic of Cuba has restricted entry and the United States has restricted entry; so, the pandemic remains a perfect excuse for both countries to move cautiously.  Since August 2020, the United States Department of State has a Level 4: Do Not Travel Advisory for the Republic of Cuba.  The Biden Administration could permit limited changes- removing monetary level constraints for remittances and again permit United States air carriers to service cities other than Havana.  However, there is no constituency with clout demanding changes, and remittances are making their way to the Republic of Cuba and airlines are operating flights.  Another choice is to return to what was permitted prior to 20 January 2017.  There is no indication the Biden Administration is considering this pathway.  Whatever the Biden Administration decides to do, it has already and repeatedly shared what will be the core of its decisions- how “Cuban-Americans” will lead whatever is decided. 

Thus far, nearing three months in, the Biden Administration has not disturbed Trump Administration (2017-2021) policies relating to the Republic of Cuba and has embraced or left in place a meaningful number of Trump Administration policies relating to other countries.  The Republic of Cuba is rarely referenced in read-outs of communications between the Biden Administration and other country leadership. 

Advocates continue to market in an increasingly circular (and recirculating) manner that the Biden Administration is “under pressure” to alter Trump Administration policies relating to the Republic of Cuba.  They are correct there is pressure.  However, the sources of pressure to move slowly, if at all, is of far more consequence to the Biden Administration than are statements from those seeking swift changes.  The Miguel Diaz-Canel Administration in Havana could create opportunities from which the Biden Administration could then respond; that is unlikely.  The United States business community continues to wait, silently, for the Republic of Cuba to provide access to opportunities whereby the silence could translate into public, and sustained interest.  

The Biden Administration has neither a visceral need nor an ideological desire to resurrect the totality of Obama Administration (2009-2017) policies related to the Republic of Cuba.  The Republic of Cuba is not of consequence now to the Biden Agenda.  Not being in the spotlight may not at this time be a negative for the Republic of Cuba.  Advocates need to position their advocacy accordingly.

LINK TO COMPLETE ANALYSIS IN PDF FORMAT