Federal Judges Deny Motions by Carnival to Dismiss Helms-Burton Lawsuits
District Judges James Lawrence King and Beth Bloom declined to toss federal suits against the cruise line over its use of property expropriated by the Cuban government.
August 29, 2019 at 04:28 PM
3 minute read
Carnival Corp.'s hopes of sinking litigation over its use of property seized by the Cuban government have been dashed following orders by two federal judges.
District Judge Beth Bloom denied the cruise line's motion to dismiss the complaint filed in the Southern District of Florida by the Havana Docks Corp. on Tuesday. Similarly, Senior District Judge James Lawrence King issued an order Monday rejecting Carnival's argument to toss a lawsuit brought against the company by Jacksonville surgeon Javier Garcia-Bengochea.
Both cases revolve around Carnival's use of waterfront properties which the plaintiffs claim to have owned before their expropriation by Cuba's government following the island's communist revolution. Garcia-Bengochea's suit concerns the Port of Santiago, while the Havana Docks case challenges the company's use of property in the Port of Havana.
The lawsuits were filed after the Trump administration allowed the suspension of Title III of the Helms-Burton Act to lapse on May 2. The move empowered U.S. citizens to pursue litigation against entities who purportedly traffic in Cuban property that had been privately owned prior to the revolution.
Colson Hicks Eidson attorneys representing the plaintiffs in both lawsuits declined to comment on Bloom and King's findings.
Carnival argued for the dismissal of Garcia-Bengochea and Havana Docks' complaints on the grounds that its use of the waterfront property constituted "lawful travel," thus immunizing the company from Helms-Burton claims. The cruise line also purported the passage of its ships through the port was "incident to lawful travel to Cuba" and "necessary to the conduct of such travel."
Read Bloom's order:
Additionally, the company challenged the plaintiffs' "direct interest" and claims of ownership over the properties in question. As noted by Bloom, Carnival moved for the dismissal of Havana Docks' case, "because plaintiff did not have a property interest in the Subject Property at the time Carnival was alleged to have committed the trafficking."
Bloom and King both rejected Carnival's argument for dismissal through exemption under the lawful travel provision.
"Based on the text and structure of Helms-Burton, the court holds that the lawful travel exception is an affirmative defense to trafficking that must be established by Carnival, not negated by plaintiff," King wrote.
Bloom's ruling held Helms-Burton "does not expressly make any distinction whether such trafficking needs to occur while a party holds a property interest in the property at issue."
"To this extent, the court agrees with the Plaintiff that the Defendant incorrectly conflates a claim to a property and a property interest," the judge wrote. "Accordingly, the court finds that the complaint sufficiently alleges that the plaintiff owns a claim to the subject property."
Roger Frizzell, Carnival's chief communications officer, maintained the company's position it acted within U.S. law in a statement to the Daily Business Review.
"We believe that we operated within the approved government process regarding Cuba," Frizzell said. "We look forward to proving the merits of our case."
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