Carnival Corporation, Royal Caribbean, MSC Cruises, and Norwegian Cruise Line Holdings have won a major appeals victory with respect to cruises to Cuba several years ago, following a lawsuit that alleged “trafficking” claims against the cruise lines.
The US 11th Circuit Court of Appeals released its 42-page conclusion on Tuesday, October 22, 2024, bringing to a likely end the years-long suit and vacating the initial judgement that would have required the lines to pay nearly $440 million in damages.
The initial suit was against the cruise lines’ use of Havana Docks for guest operations with voyages that visited Cuba from 2015-2019, when the Obama presidential administration lifted restrictions that prohibited travel to the island nation.
During those years, cruise lines earned at least $1.1 billion in revenue and paid $138 million to Cuban government entities as part of the travel arrangements. That travel was supposed to create “people-to-people” travel rather than “tourism” travel, which cruise lines interpreted based on the tour opportunities and experiences they offered.
The Havana Docks Corporation, under a limited property operational agreement, alleged that the cruise lines failed to pay them for the use of the property, which then was considered “trafficking activities” instead of legitimate operations.
Initially, the cruise lines were found liable and Havana Docks was awarded $439.2 million in damages, along with more than $11 million in expenses and legal fees.
Naturally, the cruise lines appealed that substantial ruling, and today’s judgement determined that the original case was not, in fact, appropriate.
Why Was The Original Decision Overturned?
What became the central issue for the appeals decision is not the amount of the initial damages award or indeed whether or not the cruise lines were actually in violation of the Helms-Burton Act (Title III) governing commercial activities between the US and Cuba.
Instead, actual ownership of the dock facilities is what was called into question. This impacted the property rights and who could claim such damages, which the appeals court determined would have expired in 2004 – more than a decade before the cruise lines used the dock facilities in any way.
“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,” the 2-1 majority ruling read. “We therefore set aside the judgments in favor of Havana Docks.”
Havana Harbor in Cuba (Photo Credit: Tonya Aleks)
The judges did note that had the dock facilities been owned outright rather that being operated through a concession of property interest, the outcome of their ruling may have been different. This is not the case, however, and it is an appeals court’s job to ensure the letter of the law remains upheld.
Read Also: 20 Ways to Experience Havana, Cuba During a Cruise
This is similar to smaller lawsuits that only involved Norwegian Cruise Line and MSC Cruises that were similarly dismissed because the property rights were not considered intact.
Havana Docks could further appeal this decision for additional, higher review, but has not confirmed whether or not they will challenge the appeal that has overturned their previous victory.
Do you want to visit Havana on a cruise today? While US-based cruises are no longer sailing to Havana, select sailings from German line Plantours as well as the UK-based Ambassador Cruise Line are available with very limited calls to Cuba.
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Publish date : 2024-10-23 02:43:00
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