Iberostar Hoteles Of Spain Sued By Former Property Owner In Cuba Using Libertad Act

MARIA DOLORES CANTO MARTI, AS PERSONAL REPRESENTATIVE OF THE ESTATES OF DOLORES MARTI MERCADE AND FERNANDO CANTO BORY V. IBEROSTAR HOTELES Y APARTAMENTOS SL [1:20-cv-20078; Southern Florida District]

Zumpano Patricios P.A. (plaintiff)
Holland & Knight (defendant)

NOTE: Iberostar Hoteles has two properties in the United States: 70 Park Avenue in New York City and Berkeley in Miami Beach, Florida. Iberostar Hoteles manages eighteen properties in the Republic of Cuba.

LINK To Case Filings

Excerpts From Plaintiff Complaint

10. In March 1909, Fernando Canto Granda acquired the real property located at Calle Enramadas, Esq. Santo Tomás, Santiago de Cuba, Cuba, 90200.

11. Thereafter, in or about March 1909, Fernando Canto Granda began developing the building that in 1916 housed a hotel named “El Imperial” that had a restaurant and bar, as well as the La Francia department store, which was owned and operated by Fernando Canto Granda. All property1 that was located at Calle Enramadas, Esq. Santo Tomás, Santiago de Cuba, Cuba, 90200, and all property of the La Francia retail business is collectively referred to hereinafter as the “Subject Property”.

12. In 1942, Fernando Canto Granda died intestate in Cuba. At that moment, ownership of the Subject Property passed to his four heirs, two of which died thereafter with no descendents, thereby passing their respective interest in the Subject Property to their two living siblings, Fernando Canto Bory and Rosa Canto Bory, in equal parts, by operation of Cuban law.

13. Therefore, Fernando Canto Bory inherited a one-half interest in the Subject Property.

14. In 1961, with the adoption of a series of Cuban laws published in the Cuban Official Gazette2, the communist Cuban Government3 nationalized, expropriated, and seized ownership and control of the Subject Property without authorization by or compensation to the Subject Property rightful owners, thereby confiscating4 the Subject Property.

15. At such time, Fernando Canto Bory became the owner of a one-half interest in the claim to the confiscated Subject Property.

16. Fernando Canto Bory was a U.S. citizen as of 1972 and later died in San Juan, Puerto Rico in 1992.

17. Upon his death, Fernando Canto Bory’s interest in the claim to the Subject Property passed to his wife, Dolores Martí Mercadé, who was also a U.S. citizen as of 1972.

18. Thereafter, Dolores Martí Mercadé died on February 27, 2007.

19. To the extent such interest in the claim to the confiscated Subject Property did not ultimately transfer to Dolores Martí Mercadé, the Estate of Fernando Canto Bory maintains and owns such remainder interest.

22. In accordance with the Act, decedents Fernando Canto Bory and Dolores Martí Mercadé were not eligible to file a claim with the Foreign Claims Settlement Commission under Title V of the International Claims Settlement Act of 1949 (22 U.S.C. § 1643 et seq.) because Fernando Canto Bory and Dolores Martí Mercadé were not U.S. citizens at the time the Subject Property was confiscated.

25. Upon information and belief, since it confiscated the Subject Property, the Cuban Government has continued to operate and manage a hotel on and using the Subject Property, thereby trafficking5 in the Subject Property by, including but not limited to, knowingly and intentionally: 1) acquiring, holding an interest in, managing, possessing, obtaining control of, and using the confiscated Subject Property; 2) engaging in commercial activity using and benefitting from the confiscated Subject Property, in part by entering into commercial arrangements with Iberostar, and other entities, to use and otherwise benefit from the confiscated Subject Property; and 3) causing, directing, participating in, and profiting from its commercial arrangements with Iberostar and other entities to use and benefit from the confiscated Subject Property, without any authorization by or compensation to Plaintiff.

26. Upon information and belief, since at least as early as November 2016 Iberostar has been blatantly trafficking in the confiscated Subject Property.

27. Upon information and belief, beginning approximately November 2016, Iberostar entered into a commercial arrangement with the Cuban Government to co-manage and co-operate the Iberostar Imperial hotel6, which currently includes the La Francia Restaurant, Parrillada La Joya Snack Bar, Don Fernando Lobby Bar, and El Dorado Roof Garden, all of which sit on and are part of the Subject Property.

28. In co-managing and co-operating the Iberostar Imperial Hotel, Iberostar has been and is currently engaging in commercial activity using and otherwise benefitting from the Subject Property.

34. In addition, Iberostar named the Iberostar Imperial Hotel lobby bar “Don Fernando Lobby Bar” after decedent Fernando Canto Bory without having obtained decedent Fernando Canto Bory’s or Plaintiff’s authorization to use decedent Fernando Canto Bory’s name—a clear indication of Iberostar intentionally and knowingly engaging in commercial activity using and otherwise benefitting from the Subject Property.

35. Moreover, upon information and belief, as previously mentioned, Iberostar has entered into commercial agreements with a host of corporations that own and operate travel booking websites (the “Online Booking Providers”), whereby the Online Booking Providers provide room booking services for the Iberostar Imperial Hotel and market and advertise the Iberostar Imperial Hotel and its features for the Online Booking Providers’ own profit and benefit, including in the form of fees and commissions, for the bookings completed on their websites.

36. The Online Booking Providers include, but are not limited to Booking Holdings Inc., which owns and operates the websites booking.com and kayak.com, and Expedia Group, Inc., which owns and operates the website expedia.com, and owns other entities that operate hotels.com, orbitz.com, travelocity.com, trivago.com, and cheaptickets.com.

37. Therefore, the Online Booking Providers have entered into commercial arrangements with Iberostar and/or the Cuban Government at least as early as November 2016 to both use and benefit from the confiscated Subject Property without authorization by or compensation to Plaintiff.

38. As such, the Online Booking Providers have also been causing, furthering, participating in, and profiting from Iberostar’s and the Cuban Government’s engagement in commercial activity using or otherwise benefitting from the Subject Property.

39. And, in turn, Iberostar has been causing, furthering, participating in, and profiting from the Online Booking Providers’ engagement in commercial activity using or otherwise benefitting from the Subject Property.