US Supreme Court OKs ExxonMobil lawsuit over Castro-era property seizure

The US Supreme Court made it easier for US companies to seek compensation from Cuba’s government for assets seized decades ago.The United States Supreme Court has ruled that ExxonMobil can sue Cuban state-owned companies in US courts over property on the island nation that was seized after Fidel Castro took power.The 6-3 decision on Tuesday was the second in as many months in favour of US owners of Cuban property that was confiscated by the Communist government more than 65 years ago.Recommended Stories list of 4 itemslist 1 of 4US gov’t investigates New York coffee chain over ban on pro-Israel lawmakerlist 2 of 4After a decade, Brexit’s cost to Britain is not only economiclist 3 of 4The $3.7bn man: Inside one of US’s biggest Medicare fraudslist 4 of 4SpaceX shares drop below debut price before jumping amid $600bn sell-offend of listThe outcome in the two cases could be an additional lever for the administration of US President Donald Trump to exert pressure on Cuba, which is already being squeezed by a US oil embargo.At issue was whether the 1996 law known as Helms-Burton removes the shield from lawsuits in US courts that typically cover foreign countries and state-owned businesses. The justices reversed a lower-court ruling that found that the Cuban state-owned companies are immune from lawsuits in US courts.The court said a legal defence called foreign sovereign immunity, which generally prohibits US lawsuits against foreign governments and their agents, is not available in cases like the one ExxonMobil brought against Cuban state-owned firm Corporacion CIMEX.Conservative Justice Brett Kavanaugh, who authored the ruling, wrote that the 30-year-old federal law eliminates “the sovereign immunity of Cuban agencies and instrumentalities”.“The Helms-Burton Act authorizes private suits against Cuban agencies and instrumentalities – suits that would largely be nonstarters if subjected to the FSIA’s requirements,” Kavanaugh wrote, referring to the Foreign Sovereign Immunities Act of 1976.