US Supreme Court boosts Exxon's bid to get compensation from Cuba

By Jan Wolfe

Tue, June 23, 2026 astatine 9:15 AM CDT 3 min read

By Jan Wolfe

WASHINGTON, June 23 (Reuters) - The U.S. Supreme Court made it easier connected Tuesday for U.S. companies to question compensation from Cuba's authorities for spot seized decades agone by erstwhile person Fidel Castro's government, ruling successful favour of ExxonMobil successful its ‌lawsuit against Cuban state-owned steadfast Corporación CIMEX.

In a 6-3 decision, the tribunal said a ineligible defence called overseas sovereign immunity, which mostly ‌prohibits U.S. lawsuits against overseas governments and their agents, is not disposable successful cases similar the 1 Exxon brought against CIMEX nether a 1996 U.S. instrumentality called the Helms-Burton Act.

The court's ​six blimpish justices were successful the majority, portion its 3 wide justices dissented from the ruling.

The Supreme Court reversed a little court's 2024 ruling that CIMEX could invoke the sovereign immunity defense.

The determination removes a large obstacle Exxon faced successful its 2019 suit that accused CIMEX of unlawfully utilizing a refinery and work stations that erstwhile belonged to Standard Oil, Exxon's firm predecessor. The lawsuit volition instrumentality to a little tribunal for further deliberations connected CIMEX's imaginable liability.

A Helms-Burton Act ‌provision called Title III permits lawsuits to beryllium filed ⁠in U.S. courts against anyone who "traffics" successful spot confiscated by Cuba's communist authorities aft the 1959 gyration that brought Castro to power. U.S. President Donald Trump's medication supported Exxon's entreaty to the Supreme Court.

U.S.-CUBA TENSIONS

The ruling was issued astatine ⁠a rancorous clip successful U.S.-Cuban relations. The United States connected May 20 brought execution charges against erstwhile Cuban President Raúl Castro, Fidel's younger brother, successful a large escalation successful Trump's unit run against Cuba's government.

Under Trump, the United States has efficaciously imposed a blockade connected Cuba by threatening sanctions connected countries supplying it with fuel, triggering ​power ​outages and exacerbating its worst situation successful decades.

Exxon's suit progressive Fidel Castro's confiscation of ​all of the U.S. vigor company's Cuban lipid and state ‌assets successful 1959, which represented a nonaccomplishment valued astatine $70 cardinal astatine the time. Exxon's existent assertion is present valued astatine much than $1 cardinal due to the fact that of involvement and the imaginable for enhanced damages.

According to Exxon, its assets were transferred to CIMEX, Cuba's largest state-owned conglomerate. CIMEX continues to clasp and nett from the confiscated property.

Exxon's suit was portion of a flood of astir 40 lawsuits filed nether the Helms-Burton Act successful 2019 and 2020 due to the fact that of a alteration successful U.S. argumentation toward Cuba during Trump's archetypal term.