Lawsuits begin against alleged property trafficking in Cuba

Claimants have begun filing lawsuits for the first time under Title III of the Helms-Burton Act against third parties alleged to be “trafficking” in property of US nationals confiscated by the Cuban government after the 1959 revolution, according to law firm White & Case. 



The US State Department has routinely suspended Title III of the Helms-Burton Act, which authorizes these suits, since the enactment of the law in 1996. The current Title III suspension ended on May 2. 



The European Union, the UK, and Canada have expressed opposition to what they consider to be the extraterritorial application by the United States of unilateral Cuba-related measures, contrary to international law, and warn of an “unnecessary spiral of legal actions” under their respective blocking statutes, according to the law firm. 

According to White & Case, the implementation of Title III reflects increasing US pressure on Cuba, in tandem with pressure on Venezuela and Nicaragua, which are viewed by Washington to be engaged in mutual support of repressive regimes.

The US State Department initially announced on January 16 that it was reviewing whether further suspensions of Title III of the Helms-Burton Act were justifiable or necessary. As part of that reconsideration, on March 4 the State Department partially lifted Title III’s suspension to allow a limited set of lawsuits against Cuban entities and sub-entities listed on the Department of State’s List of Restricted Entities and Sub-entities Associated with Cuba, starting March 19.



The suspension remained in place through May 1, 2019, for suits against all other parties.

With the expiration of the remaining partial suspension, as of May 2 claims may be brought under Title III against any person, and the State Department announced that there are no exemptions to the May 2 implementation of Title III.



Since May 2, multiple lawsuits have been filed in US federal courts under Title III of the Helms-Burton Act.



The State Department encourages persons doing business in Cuba to consider whether they are trafficking in confiscated property, intentionally or unintentionally, as it could give rise to risk of suit under Title III.