A federal judge in Miami has ruled that four of the largest cruise companies engaged in tourism to Cuba that was barred by law between 2015 and 2019. NBC 6’s Steve Litz reports
The US 11th Circuit Court of Appeals overturned a previous ruling that found four major cruise lines engaged in tourism to Cuba that was barred by U.S. law.
The earlier decision found Carnival Corporation, Royal Caribbean Group, MSC Cruises and Norwegian Cruise Line Holdings liable for $439 million in damages to Havana Docks Corporation for using docks in Havana, Cuba, which were confiscated by the Havana government in1960.
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The appeals court determined that Havana Docks' property interest had expired in 2004, and therefore, the cruise lines' use of the docks did not constitute trafficking.
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"After a review of the record, and with the benefit of oral argument, we hold that Havana Docks’ limited property interest had expired, for purposes of Title III, at the time of the alleged trafficking by the cruise lines. We therefore set aside the judgments in favor of Havana Docks and remand for further proceedings as to its other claims against Carnival," attorney Robert Kritzman told Seatrade Cruise News.
In a joint statement, MSC Cruises, NCLH and Royal Caribbean said: "We are pleased with the appellate court’s decision and thank the court for its thorough consideration of the case.”
"We are pleased with the outcome and will not comment further on pending litigation," a Carnival Corp. spokesperson said.
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U.S. Judge Beth Bloom said in the March 2022 ruling that Carnival, Norwegian, Royal Caribbean and MSC Cruises must compensate the descendants of a U.S. businessman for using a Havana terminal that was confiscated after the Cuban revolution for those trips made outside the travel categories allowed by law.
After former President Barack Obama's detente with the island, cruise companies were issued licenses by the U.S. Treasury Department to carry American passengers to Cuba. But that did not mean people could travel for tourism, the judge said.
“The fact that OFAC (The Office of Foreign Assets Control) promulgated licenses for traveling to Cuba, and executive branch officials, including the president, encouraged defendants to do so, does not automatically immunize defendants from liability if they engaged in statutorily prohibited tourism,” Bloom wrote.
She said in her decision that the matter could proceed to trial to decide on monetary damages.
Bloom said cruise ships were taking passengers outside the travel categories allowed by law. The 169-page court document shows the four cruise lines also gave millionaire contracts to various Cuban government agencies to use the terminal and for tours. The document also revealed the companies made more than $1.1 billion in revenue from booking cruises with stops in Cuba.
Cruise travelers went on excursions to nightclubs, landmarks, rivers and beaches when they began traveling to Cuba in 2016. That was before then-President Donald Trump announced restrictions in June 2019, prompting cruise lines to hastily drop Cuba stops and reroute ships on the go.
A month before those restrictions were announced, the Trump administration decided to activate a provision of the U.S. embargo on the island that allowed Americans to sue almost any company that engages in commercial activity or benefits from property confiscated by Cuba's government.
Every president had suspended what is known as Title III of the 1996 Helms-Burton Act since the law's passage because of objections from U.S. allies doing business in Cuba and the effect on future negotiated settlements between the U.S. and Cuba.
One of the exceptions for that law's provision is for uses of that property for lawful travel, and Bloom said these cruises were not exempted.
The company Havana Docks Corporation was looking for about $9.2 million.
The Associated Press contributed to this story.
