Spanish Appellate Court Rules Sánchez Hill (non-Libertad Act) Lawsuit Against Meliá Hotels International Has Jurisdiction to Proceed; Discovery Begins
/Spanish Appellate Court Rules Sánchez Hill (non-Libertad Act) Lawsuit Against Meliá Hotels International Has Jurisdiction to Proceed; Discovery Begins
There Is Jurisdiction For The Issue Of Unjust Enrichment
Melia Hotels International Wants Spanish Courts To Link Lawsuit To Libertad Act So European Union (EU) Blocking Statutes Can Be Invoked
Libertad Act Plaintiffs In United States Will Be Monitoring Discovery Process
Background
On 12 March 2002, Palma de Mallorca, Spain-based Meliá Hotels International (2019 revenues approximately US$2.1 billion) reportedly offered US$5 million to the descendants of Mr. Rafael Lucas Sanchez Hill as payment to prevent the United States Department of State from using Title IV relating to the Sol Rio de Oro Hotel in response to enactment in 1996 of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as "Libertad Act").
Title IV of the Libertad Act restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims. Employees of one Canada-based company is currently known to be subject to this provision based upon a certified claim.
On 26 March 2002, Sol Melia International, reportedly believing the [George W. Bush Administration; 20 January 2001 to 20 January 2009] United States Department of State would neither implement Title III nor Title IV of the Libertad Act, Melia Hotels International withdrew the offer of US$5 million and proposed US$3,197.75 representing a value (.06%) based upon the twenty-nine (29) acres of land occupied by the Sol Rio de Oro Hotel of the approximately 120,000 acres of land claimed by the descendants of the owners of the property. The US$3,197.75 was determined by Melia Hotels International as the corresponding percentage of the US$5 million tax loss carry-forward amount with the Internal Revenue Service (IRS) in the 1960's.
On 29 May 2019, descendants of Mr. Rafael Lucas Sanchez Hill, acting as Central Santa Lucia L.C., filed a lawsuit in Spain seeking US$10 million from Meliá Hotels International seeking damages for the use of land upon which a hotel is located in the Republic of Cuba. The lawsuit is not using provisions of Title III of the Libertad Act.
Title III of the Libertad Act authorizes lawsuits in United States District Courts against companies and individuals who are using a certified claim or non-certified claim where the owner of the certified claim or non-certified claim has not received compensation from the Republic of Cuba or from a third-party who is using (“trafficking”) the asset.
On 3 September 2019, the court in Spain dismissed the lawsuit on grounds of jurisdiction. On 30 September 2019, the plaintiffs filed an appeal.
In October 2019, Melia Hotels International reported receiving a Title IV letter from the United States Department of State; unknown is which property or properties in the Republic of Cuba were the basis for the letter. Melia Hotels International has refused to release the text of the Title IV letter, so uncertain whether the letter was a) a request for information about Melia Hotels International operations in the Republic of Cuba to determine whether there may be issues relating to the Libertad Act or b) a notification that executives and their families are to be denied entry into the United States.
On 18 October 2019, Melia Hotels International filed its 55-page response including reference to European Council (EC) Regulation No. 2271/1996 enacted on 22 November 1996.
On 4 February 2020, executives of Melia Hotels International reported receiving a letter from the United States Department of State notifying the company that visas had been revoked for senior executives.
On 18 March 2020, the Spanish Appellate Court ruled the lawsuit against Melia Hotels International would proceed.
Other hotel management companies operating in the Republic of Cuba- those already listed as defendants in lawsuits and those notified by plaintiff attorneys as potential defendants in lawsuits could be impacted by the offer in 2002 by Melia Hotels International S.A., particularly as the company has the largest number of properties under management in the Republic of Cuba.
LINK To Spanish Appellate Court’s Decision (18 March 2020) Spanish
LINK To Spanish Appellate Court’s Decision (18 March 2020) English- Google Translate
LINK To Case Filings
Previous Posts
Spain's Melia Hotels International CEO Confirms He Is Restricted From Entering United States Due To Libertad Act Title IV Letter; Says 50 Other Companies Impacted
February 05, 2020
Melia Hotels International Presents In Spain Its Response To Appeal By Plaintiffs Of Case Dismissal; Company Reportedly Receives Title IV Letter
November 23, 2019
U.S. Shareholders Control 10.04% Of Spain's Melia Hotels; Company Reports Libertad Act/Trump Administration Impact Upon Cuba Operations
November 11, 2019
https://www.cubatrade.org/blog/2019/11/10/xnlt2n3jfd0sc3k8yvc0495iqkvfo0?rq=Melia%20Hotels%20International
Plaintiffs Appeal Dismissal Of Lawsuit In Spain Against Melia Hotels; Plaintiffs Sue In U.S.; Why Did Melia Hotels Offer US$5 Million Then US$3,197.75?
October 05, 2019
https://www.cubatrade.org/blog/2019/10/3/plaintiffs-appeal-lawsuit-dismissal-in-spain-against-melia-hotels-international-plaintiffs-also-have-sued-melia-hotels-international-in-the-united-states?rq=Santa%20Lucia
Court In Spain Dismisses Lawsuit Against Melia Hotels International Relating To Operations In Cuba; Plaintiffs Now Expected To Sue In U.S. Using Libertad Act
September 04, 2019
https://www.cubatrade.org/blog/2019/9/4/2sv7ypsuz6wyb8aykm25cseuvcpacu?rq=Santa%20Lucia
Recent Court Filings In Spain (Not United States) Lawsuit Against Melia Hotels International
July 23, 2019
