Why Didn’t Trump Administration Recognize 60th Anniversary Of First Nationalization By Cuba? Nor Did Members Of Congress. Are Lack Of Statements A Message? Is There A Commitment To Claimants?

President Trump Did What His Three Predecessors Didn’t Do- Now He Ignores It

“The crime of two centuries- they steal US$1.9 billion and sixty years later there is no money, no prosecution, no justice for the 5,913 victims.” Certified Claimant

From a Washington DC-based attorney: “The big nationalization date was Aug. 6, 1960. All the big U.S. companies were seized that day- and it was an even-decade anniversary this year, 60 years. It goes to show how little anyone cares about the claims, not even a State Department statement.”

Fifteen days ago, 6 August 2020 marked the 60th anniversary of the expropriation of 382 companies by the government of the Republic of Cuba. The process began on 29 June 1960.

The first asset to be expropriated was an oil refinery owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73).

The Trump Administration did not recognize the 60th anniversary- even though in 2019 it took a decision specifically focused towards the 5,913 certified claimants and the unknown number of non-certified claimants which had been unavailable since 1996 due to suspension. Four occupants of White House, including through the first two years of the Trump Administration, had prevented claimants from filing lawsuits to recover assets expropriated without compensation by the government of the Republic of Cuba.

Not a statement from The White House where the National Security Council has been the architect of United States policy towards the Republic of Cuba since 20 January 2017.

Not a statement from the United States Department of State- where Secretary of State Mike Pompeo on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”). The United States Department of State has, however, focused in 2020 upon using the birthdays of H.E. Dr. Fidel Castro and H.E. General Raul Castro as implementation points for decisions relating to the Republic of Cuba.

Not a statement from the United States Department of the Treasury, whose Office of Foreign Assets Control (OFAC) is responsible for implementing regulations relating to the Republic of Cuba.

Not a statement from a member of the United States Congress- particularly striking the silence from the three members of the United States Senate who are of Cuban descent- The Honorable Marco Rubio (R- Florida), The Honorable Ted Cruz (R- Texas) and The Honorable Robert Menendez (D- New Jersey). Of note: Senator Rubio is the chair of the Sub-Committee on Western Hemisphere, Transnational Crime, Civilian Security, Democracy, Human Rights, and Global Women’s Issues of the Committee on Foreign Relations. Nor the three members of the United States House of Representatives who are of Cuban descent: The Honorable Albio Sires (D- 8th New Jersey), The Honorable Mario Diaz-Balart (R- 25th Florida) and The Honorable Alex Mooney (R- 2nd West Virginia). Of note: Representative Sires is chair of the Sub-Committee on Western Hemisphere, Civilian Security, And Trade of the Committee on Foreign Affairs.

Not a statement from any of the 5,913 certified claimants or from the unknown number of non-certified claimants or from their respective attorneys.

Background

Libertad Act

The Trump Administration has made operational Title III and further implemented Title IV of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).

Title III 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.

Title IV restricts entry into the United States by individuals who have connectivity to unresolved certified claims or non-certified claims. One Canada-based company and on Spain-based company are currently known to be subject to this provision based upon a certified claim.

Suspension History

Title III has been suspended every six months since the Libertad Act was enacted in 1996- by President William J. Clinton, President George W. Bush, President Barack H. Obama and President Donald J. Trump.

On 16 January 2019, The Honorable Mike Pompeo, United States Secretary of State, reported a suspension for forty-five (45) days.
On 4 March 2019, Secretary Pompeo reported a suspension for thirty (30) days.
On 3 April 2019, Secretary Pompeo reported a further suspension for fourteen (14) days through 1 May 2019.
On 17 April 2019, the Trump Administration reported that it would no longer suspend Title III.
On 2 May 2019 certified claimants and non-certified claimants were permitted to file lawsuits in United States courts.

Certified Claims Background

There are 8,821 claims of which 5,913 awards valued at US$1,902,202,284.95 were certified by the United States Foreign Claims Settlement Commission (USFCSC) and have not been resolved for nearing sixty years (some assets were officially confiscated in the 1960’s, some in the 1970’s and some in the 1990’s). The USFCSC permitted simple interest (not compound interest) of 6% per annum (approximately US$114,132,137.10); with the approximate current value of the 5,913 certified claims US$8.7 billion.

The first asset to be expropriated by the Republic of Cuba was an oil refinery on 6 August 1960 owned by White Plains, New York-based Texaco, Inc., now a subsidiary of San Ramon, California-based Chevron Corporation (USFCSC: CU-1331/CU-1332/CU-1333 valued at US$56,196,422.73). From the certified claim filed by Texaco: “The Cuban corporation was intervened on June 29, 1960, pursuant to Resolution 188 of June 28, 1960, under Law 635 of 1959. Resolution 188 was promulgated by the Government of Cuba when the Cuban corporation assertedly refused to refine certain crude oil as assertedly provided under a 1938 law pertaining to combustible materials. Subsequently, this Cuban firm was listed as nationalized in Resolution 19 of August 6, 1960, pursuant to Cuban Law 851. The Commission finds, however, that the Cuban corporation was effectively intervened within the meaning of Title V of the Act by the Government of Cuba on June 29, 1960.”

The largest certified claim (Cuban Electric Company) valued at US$267,568,413.62 is controlled by Boca Raton, Florida-based Office Depot, Inc. The second-largest certified claim (International Telephone and Telegraph Co, ITT as Trustee, Starwood Hotels & Resorts Worldwide, Inc.) valued at US$181,808,794.14 is controlled by Bethesda, Maryland-based Marriott International; the certified claim also includes land adjacent to the Jose Marti International Airport in Havana, Republic of Cuba. The third-largest certified claim valued at US$97,373,414.72 is controlled by New York, New York-based North American Sugar Industries, Inc. The smallest certified claim is by Sara W. Fishman in the amount of US$1.00 with reference to the Cuban-Venezuelan Oil Voting Trust.

The two (2) largest certified claims total US$449,377,207.76, representing 24% of the total value of the certified claims. Thirty (30) certified claimants hold 56% of the total value of the certified claims. This concentration of value creates an efficient pathway towards a settlement.

Title III Lawsuits

The Trump Administration on 2 May 2019 made operational Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (known as “Libertad Act”).

26 Lawsuits Filed (10 Certified Claimants & 16 Non-Certified Claimants)
US$163,700.00 Court Filing Fees
55 Law Firms
162+ Attorneys
8,600+ Filed Court Documents
US$4.5+ Million Law Firm Billable Hours (estimated 85% by defendants)
14 Countries Impacted
80 Plaintiffs (some in multiple cases)
4 Class Action Requests
50 Defendants (including corporate parent, subsidiaries; some sued in multiple lawsuits)
20 United States Defendants (not including subsidiaries)
5 Republic of Cuba Initial Defendants (two remaining)
20 Non-United States Defendants
5 European Union-Based Defendants
5 Companies Notified As Potential Defendants

Lawsuits filed in United States District Courts in Southern Florida (20), Washington DC (1), Western Washington State (1), Nevada (1), Southern District New York (1), Northern Texas (1) and Delaware (2). Some cases have been transferred and some cases have been consolidated; one dismissed by Plaintiff.

55 Law firms retained by plaintiffs/defendants: Ainsworth & Clancy; Astigarraga Davis Mullins & Grossman; Akerman; Andrews & Springer; Arent Fox; Aronovitz Law; Baker & McKenzie; Ballard Spahr; Bird & Bird; Boies Schiller Flexner; Bracewell; Carlton Fields; Coffey Burlington; Colson Hicks Eidson; Creed & Gowdy; Cueto Law Group; Duane Morris, Dubbin & Kravetz; Ewusiak Law; Gibson, Dunn & Crutcher; Hirzel Dreyfuss and Dempsey; Hogan Lovells; Holland & Knight; Jones Day; Jones Walker; Kantrowitz, Goldhamer, & Graifman; Kelly Hart & Hallman; Kozyak Tropin & Throckmorton; Law Office of Andre G. Raikhelson; Law Office of Alexander Villarreal; Law Offices of Paul Sack; Law Offices of Robert L. Muse; Mandel & Mandel; Manuel Vazquez PA; MoloLamken; Margol & Margol; Mayer Brown; Morgan, Lewis & Bockius; Morris Nichols Arsht & Tunnell; Pacifica Law Group; Potter Anderson & Corroon; Rabinowitz, Boudin, Standard, Krinsky & Lieberman; Reed Smith; Reid Collins & Tsai; Rice Reuther Sullivan & Carroll; Rivero Mestre; Roig & Villarreal; Rosenthal, Monhait & Goddess; Scott Douglass & McConnico; Sidley Austin; Steptoe & Johnson; Venable; Wicker Smith O’Hara McCoy & Ford; Young, Conaway, Stargatt & Taylor; Walden, Macht & Haran; Zumpano Patricios.

Countries impacted: Canada, Chile, China, France, Germany, Netherlands, Panama, Republic of Cuba, Singapore, Spain, Switzerland, Thailand, United Kingdom, United States.

Certified Claimant Participation: Of the 5,913 claimants certified by the United States Foreign Claims Settlement Commission (USFCSC), these (original claim value in parenthesis) have filed Libertad Act lawsuits: 2nd largest certified claimant North American Sugar (US$97,373,414.72); 9th largest certified claimant Exxon Mobil Corporation (US$71,611,002.90 and US$173,157.12); 31st largest certified claimant Havana Docks Corporation (US$9,179,700.08); 88th largest certified claimant Julies Shepard (US$2,033,959.17); 195th largest certified claimant Javier Garcia-Bengochea (US$547,365.24).

In the third quarter of 2019, the then twenty-eight, now twenty-seven member Brussels, Belgium-based European Union (EU) confirmed its intention to issue a Request For Proposal (RFP) to law firms in the United States. The law firm(s) would be retained to file “amicus curiae” (friend-of-the-court) motions and other motions on behalf of each Libertad Act Title III lawsuit defendant who is domiciled in the EU.

Since 2 May 2019, some filings have been appealed, consolidated, dismissed, refiled, reversed, and transferred within districts and from district to district. Some defendants have been dismissed, but the case continues with other defendants.

Economic Eye On Cuba

Why Didn’t Trump Administration Recognize 60th Anniversary Of First Nationalization By Cuba? Is It Committed To Claimants? Is Lack Of Statement A Message? To Whom?

U.S. - Cuba Trade and Economic Council, Inc.