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1960 Seizure - US Supreme Court to hear Exxon bid for compensation from Cuban entities Login/Join 
Drill Here, Drill Now
Picture of tatortodd
posted
Interesting case from an Oil & Gas perspective as well as an investor perspective:
  • Oil & Gas - Exxon Mobil's (XOM) assets seized in 1960 and never compensated. Using US courts to seek compensation and it's reached SCOTUS. This happened before I was born, but I suspect it's shaped US oil & gas foreign investment strategies as there doesn't appear to have had collateral. In modern times, I've seen US oil & gas corporations require 1st world physical assets as collateral (e.g. required Venezuela to purchase significant percentage a US refinery and when Venezuela seized oil fields operated by US corporations they lost their US refinery ownership) and in other cases I've seen World Bank funding as a requirement so if they seize oil & gas assets they'll likely lose ability to get loans from most reputable places.
  • Investors - I included investors as shareholders as the largest shareholders as the Top 20 owners are all mutual funds and ETFs. The Top 20 owns 16.78% of all outstanding shares according to Morningstar, and it's likely many Sigforumites own these as XOM is on Fortune 500 (e.g. Vanguard 500 Index, Fidelity 500 Index, etc).
    quote:
    US Supreme Court to hear Exxon bid for compensation from Cuban entities
    By Jan Wolfe
    October 3, 20258:57 AM CDT Updated October 3, 2025

    WASHINGTON, Oct 3 (Reuters) - The U.S. Supreme Court agreed on Friday to hear ExxonMobil's (XOM.N), bid to obtain compensation from Cuban state-owned firms for oil and gas assets seized in 1960 under a federal law that lets Americans sue foreign companies and individuals over property confiscated by the communist-ruled Caribbean country.

    The justices took up Exxon's appeal of a lower court's ruling that undercut its legal efforts to win such compensation from Cuban state-owned companies that allegedly have profited from stolen property in litigation invoking a 1996 U.S. law called the Helms-Burton Act.

    The court also took up a similar bid by a Delaware-registered company that built port facilities in Havana seized in 1960 by Cuba's government to revive $440 million in judgments against Carnival (CCL.N), Norwegian Cruise Line (NCLH.N), and two other cruise lines that have used the terminal.

    The Supreme Court is due to hear arguments in the cases during its new nine-month term that starts on Monday.

    The Exxon dispute relates to former Cuban leader Fidel Castro's confiscation of all of its oil and gas assets in Cuba - a loss valued at more than $700 million today. Cuba has never paid any compensation to Exxon, but the Helms-Burton Act gave the oil company an opening to sue for damages in U.S. court.

    The Helms-Burton Act allows U.S. nationals who owned property in Cuba to sue anyone who "traffics in property which was confiscated by the Cuban Government on or after January 1, 1959." It also authorizes the U.S. president to suspend that provision if deemed "necessary to the national interests of the United States."

    Exxon filed a lawsuit in 2019, seeking compensation from three Cuban state-owned companies it said continue to hold and profit off their stolen property. Those Cuban state-owned companies are Corporación Cimex, S.A. (Cuba), Corporación Cimex, S.A. (Panama) and Unión Cuba-Petróleo. Years of litigation followed, focused on jurisdictional questions rather than liability.

    The U.S. Court of Appeals for the District of Columbia Circuit concluded that plaintiffs bringing cases under the Helms-Burton Act must satisfy an exception under a different U.S. law, the Foreign Sovereign Immunities Act, which shields foreign governments from lawsuits in the United States unless an exception applies.

    In the cruise lines dispute, Havana Docks Corporation sued four cruise lines - Carnival, Norwegian, Royal Caribbean Cruises (RCL.N), and MSC Cruises - in federal court in Florida in 2019. Havana Docks built piers at the port prior to Cuban Revolution of the 1950s and is seeking compensation from the cruise operators because they used that property from 2016 to 2019.

    Shortly after coming to power in 1959, Cuban leader Fidel Castro nationalized and expropriated property held by U.S. companies including Havana Docks, which had a 99-year concession for the construction and operation of piers at the port of Havana, granted in 1934 by Cuba's government.

    Cuba has never paid any compensation to Havana Docks, but the Helms-Burton Act gave the company an opening to sue for damages in U.S. court.

    A federal judge ruled that the cruise lines had engaged in trafficking by having their ships dock at the terminal and imposed judgments of more than $100 million against each of the four.

    The Atlanta-based 11th U.S. Circuit Court of Appeals threw out those judgments last year, finding that Havana Docks did not have a viable claim because its concession would have expired in 2004, well before the cruise lines used the facilities.

    U.S. presidents of both parties opted to suspend the law, meaning private lawsuits could not go forward. But President Donald Trump lifted that suspension in 2019 during his first term in office, unleashing a wave of litigation in U.S. courts against Cuban state-owned entities and a few American companies that were accused of trafficking in confiscated property.



    Ego is the anesthesia that deadens the pain of stupidity

    DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.
  •  
    Posts: 25527 | Location: Northern Suburbs of Houston | Registered: November 14, 2005Reply With QuoteReport This Post
    Partial dichotomy
    posted Hide Post
    Having worked for Mobil for several years in the early 80's and owning XOM, I'm curious to see how this goes.




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    Posts: 41753 | Location: SC Lowcountry/Cape Cod | Registered: November 22, 2002Reply With QuoteReport This Post
    The Unmanned Writer
    Picture of LS1 GTO
    posted Hide Post
    While i like the approach, i have some deep problems with crimes committed being grandfathered in to new laws.

    What happens, for example, when The goobermint makes it a seizable crime of 10x the vehicle’s original purchase value for anyone late on their vehicle registration AND, they backdate that to 1960?






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    Posts: 14927 | Location: It was CA., Now it's "FREEEEEEDOM!!" (TN) | Registered: March 22, 2008Reply With QuoteReport This Post
    Member
    Picture of ridewv
    posted Hide Post
    quote:
    Originally posted by LS1 GTO:


    What happens, for example, when The goobermint makes it a seizable crime of 10x the vehicle’s original purchase value for anyone late on their vehicle registration AND, they backdate that to 1960?



    I think your example is a fine. The Exxon case is about a crime, theft. If you find the now wealthy person who embezzled your entire $100,000 savings 40 years ago should you be prohibited from trying to recover it?


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    Posts: 8359 | Location: Northern WV | Registered: January 17, 2005Reply With QuoteReport This Post
    Drill Here, Drill Now
    Picture of tatortodd
    posted Hide Post
    ^^^ This ^^^

    The XOM case isn't much different than the 80 years of trying to return art and jewelry to Jewish heirs who had it confiscated by Nazi Germany. Yes, the holocaust is many many orders more horrific example of seizure, but returning the seized asset to the rightful owner/heir/legal entity is the same principal.



    Ego is the anesthesia that deadens the pain of stupidity

    DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.
     
    Posts: 25527 | Location: Northern Suburbs of Houston | Registered: November 14, 2005Reply With QuoteReport This Post
    Member
    posted Hide Post
    Even if they get a judgement. How do they collect from the Cuban government?!
     
    Posts: 5527 | Location: Florida Panhandle  | Registered: November 23, 2008Reply With QuoteReport This Post
    As Extraordinary
    as Everyone Else
    Picture of smlsig
    posted Hide Post
    Very interesting and I agree with the Holocaust comparison.
    Please keep us updated..


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    Eddie

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    Posts: 7256 | Location: In transit | Registered: February 19, 2013Reply With QuoteReport This Post
    Drill Here, Drill Now
    Picture of tatortodd
    posted Hide Post
    quote:
    Originally posted by ElToro:
    Even if they get a judgement. How do they collect from the Cuban government?!
    With a little help from Marco Rubio, Pam Bondi, and Scott Bessent:
    quote:
    The Foreign Claims Settlement Commission of the United States (FCSC) is a quasi-judicial, independent agency within the Department of Justice which adjudicates claims of U.S. nationals against foreign governments, under specific jurisdiction conferred by Congress, pursuant to international claims settlement agreements, or at the request of the Secretary of State. Funds for payment of the Commission's awards are derived from congressional appropriations, international claims settlements, or liquidation of foreign assets in the United States by the Departments of Justice and the Treasury.



    Ego is the anesthesia that deadens the pain of stupidity

    DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.
     
    Posts: 25527 | Location: Northern Suburbs of Houston | Registered: November 14, 2005Reply With QuoteReport This Post
    Optimistic Cynic
    Picture of architect
    posted Hide Post
    quote:
    Originally posted by ElToro:
    Even if they get a judgement. How do they collect from the Cuban government?!
    Expand Gitmo 250 Mi. N to S and 750mi. E to W?

    Kinda j/k, but I expect most of the citizenry of Cuba would be absolutely delighted with this outcome.
     
    Posts: 7927 | Location: NoVA | Registered: July 22, 2009Reply With QuoteReport This Post
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