Exxon Files Suit Over Cuban Revolution Land Grab

WASHINGTON (CN) - In a federal lawsuit filed Thursday, ExxonMobil alleged that Cuban entities have been using and profiting off of its property in Cuba, which was seized by Fidel Castro's regime in 1960.

The lawsuit was made possible by the Trump administration’s recent decision to fully lift the suspension of a provision of a 1996 law known as the Helms-Burton Act that allows Cuban refugees to file lawsuits over property confiscated during the 1959 Cuban Revolution.

Since the ban was enacted in 1996, Bill Clinton and every president since have suspended the portion of the law that would allow U.S. companies to sue for lost property in order to avoid international tension.

The suspension, however, was fully lifted Thursday under the direction of Secretary of State Mike Pompeo. At a press event in April, Pompeo said the move would hold “the Cuban government accountable for seizing American assets.”

Exxon, represented by Steven Davidson of Steptoe & Johnson, is seeking more than $71.6 million, plus interest, for profits lost since the 1960 seizure.

Its complaint alleges that the Cuban Export-Import Corporation (CIMEX) and the Cuba Oil Union (CUPET) have been using the U.S. company’s land since it was confiscated. Further, it states that both state-owned entities have profited off the seizure by continuing to use Exxon’s property to refine oil and sell it.

“CIMEX and CUPET have generated revenues, obtained profits and realized other benefits from these activities,” the complaint states, noting that they did so without permission from Exxon.

According to the complaint, the Foreign Claims Settlement Commission found that Exxon has proven ownership of its property under the International Claims Settlement Act. Hence, according to the act, the state-run Cuban companies are liable for “trafficking” the confiscated property.

“[Exxon] has not authorized CIMEX or CUPET to refine crude oil using [its] confiscated Property, nor has [it] authorized them to produce, transport, make available for sale, or otherwise engage in any commercial activity involving any petroleum products that are or have been produced using [Exxon’s] confiscated property,” the complaint states.

Reporting annual revenues as high as $1.3 billion, CIMEX is Cuba’s largest commercial corporation and reportedly maintains a financial division that manages all payments between the U.S. and the sole tourism company Americans can use to travel to Cuba. CUPET is an oil company that produces, refines, and distributes petroleum products. Together under the name “Servi-Cupet”, CUPET and CIMEX operate more than 300 service stations across Cuba.

Similar to Exxon, other big U.S. companies like Office Depot and Coca Cola lost property in Cuba to the Castro regime. The U.S. State Department has estimated that the Trump administration’s rollback could subject Cuban entities to as many as 200,000 potential lawsuits.

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