Judge Rules Against Expedia In Cuba Libertad Act Title III Lawsuit. Next Is Discovery Process- Which Harmed Cruise Lines And Helped Plaintiffs Obtain US$450,924,908.82 Verdict.

CENTRAL SANTA LUCIA, L.C., PLAINTIFF, V. EXPEDIA GROUP, INC., DEFENDANT. (1:22-CV-00367; Delaware District)
Cross & Simon, LLC (plaintiff)
Berliner Corcoran & Rowe LLP (plaintiff)
Fields LLC (plaintiff)
Ballard Spahr LLP (defendant)

Order (6/22/23)
Complaint (3/22/22)
Link To Libertad Act Lawsuit Filing Statistics

Excerpts From Order 

Defendant Expedia Group Inc. has moved to dismiss the Amended Complaint filed by Central Santa Lucia, L.C. (CSL). D.I. 23. Expedia contends that I should dismiss the case for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b){l) because CSL has not suffered any actual, concrete injury and therefore lacks standing under Article III of the Constitution. D.I. 24 at 1. Alternatively, Expedia argues that the Amended Complaint should be dismissed under Rule 12(b)(6) for failure to state a claim. 

I reject Expedia's lack-of-standing argument for the reasons stated in Glen v. American Airlines, Inc. (Glen[), 7 F.4th 331,334 (5th Cir. 2021), cert. denied, 142 S. Ct. 863 (2022). See also Glen v. Trip Advisor, LLC (Glenn II), 2022 WL 3538221, at *2 (3d Cir. Aug. 18, 2022) ("agree[ing] with the Fifth Circuit [in Glen 1] that the harm Glen alleges-namely, [Defendants'] wrongfully profiting from his usurped properties-'bears a close relationship to unjust enrichment, which has indisputable common-law roots"'), cert. denied, 143 S. Ct. 737 (2023). I also reject the three arguments Expedia makes to justify its request for dismissal of the Amended Complaint pursuant to Rule 12(b )( 6). 

Excerpts From Observation By Attorney 

“Chief Judge of the Delaware U.S. District Court, ruled fifteen months after Expedia filed its Amended Motion to Dismiss Central Santa Lucía, L.C.'s (CSLLC) Amended Complaint.  The judge denied the Motion to Dismiss.  The case now will move into the more costly and exhaustive discovery phase.  Judge Colm Felix Connolly found that CSLLC has in fact suffered real constitutionally cognizable injury from Expedia’s trafficking, necessarily akin to the common law cause of action of unjust enrichment.  Connolly found unpersuasive Expedia's argument that CSLLC individual members are merely the descendants of the old predecessor Cuban entities owners, and not the actual individual owners of the confiscated and trafficked in lands.  Connolly found that Title III does not require that CSLLC's owners have been U.S. citizens at the time that their property was confiscated by the regime, given the statute’s well-established elaborate dual tracks for both certified claimants and Cuban-Americans.  Connolly found that CSLLC had fully complied with the statutorily mandated trafficking notice to Expedia under Title III's highly specific requirement.  Connolly disagreed with Expedia's argument that its tourist bookings to CSLLC's all-inclusive hotels are exempted from liability by Title III's "incident to lawful travel" exception, since it is by no means clear that these consisted of anything other than embargo-prohibited tourist travel.”

Excerpts From Complaint 

Central Santa Lucia brings this action to recover damages and interest under the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996, codified at 22 U.S.C. § 6021, et seq. (the “Helms-Burton Act” or “Act”) against Expedia for trafficking in property that was confiscated by the Cuban Government on or after January 1, 1959, and as to which Central Santa Lucia owns claims. 

The Confiscated Property includes real property located in or near Holguin province, Cuba that, until it was confiscated by the Cuban government in 1960, was owned by Santa Lucia Company, S.A., a Cuban corporation. The Confiscated Property consists of Santa Lucia Company, S.A. and approximately 102,300 acres of land, including thirty-five miles of oceanfront property that in some parts extended 8 miles inland. The following beaches (as they are currently known) are located on the Confiscated Property: Playa Blanca; Playa Pesquero; Playa Yuraguanal; Playa Esmeralda; and Playa Guardalavaca. 

A number of luxury hotels are currently located on the Confiscated Property including, but not limited to: Hotel Brisas Guardalavaca; Club Amigo Atlantico-Guardalavaca; Paradisus Rio de Oro; Sol Rio de Luna y Mares; Hotel Turquesa Holguin; Fiesta Americana Costa Verde; Hotel Playa Costa Verde; Playa Pesquero Resort Suite and Spa Hotel; Iberostar Selection Holquin; Villa Don Lino; Memories Holquin; and the Iberostar Selection Almirante. 

Under the agency model, Expedia Group facilitates travel bookings and acts as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider with Expedia Group receiving commissions or ticketing fees from the travel supplier and/or the traveler. Customers pay at the time of stay under this model, referred to as “Hotel Collect.” The agency model accounted for 24% of Expedia Group’s revenue in 2020. 

On May 23, 2017, Expedia Group announced that it had started offering online booking for hotels in Cuba. Veronica Vega, Expedia Area Manager for the Caribbean, stated that, “I see a lot of potential. We are talking about the largest country in the Caribbean with significant hotel expansion plans,” and that, “We are very excited about being able to facilitate travel and give people the independence to select their itinerary.” 1 57. Expedia Group entered into a settlement agreement with the Office of Foreign Assets Controls (“OFAC”) on May 17, 2019, regarding 2,221 potentially non-compliant Cubarelated travel transactions that occurred between 2011-2014. 

Expedia Group websites still facilitate online booking for hotels in Cuba and Expedia Group has never announced a withdrawal from the Cuban market. 62. Expedia Group websites advertise hotels on the Confiscated Property and enable the hotels, Grupo de Administración Empresarial S.A. (“GAESA”), and the Cuban government to normalize the appearance of the Cuban military’s involvement in the tourism and hotel industry in Cuba.2 63. Expedia Group websites facilitate the payment of hard currency to the Cuban government and military, including GAESA. 

Expedia Group is profiting from trafficking in the Confiscated Property by or through its retail brands that advertise, publicize, and/or facilitate the booking of rooms at hotel properties in Holguin province. 74. Expedia Group does not list hotels on the Expedia Group websites for charitable purposes. 

Links To Related Posts 

44th Libertad Act Lawsuit Filed. Plaintiffs Suing Melia Hotels In Spain Now Suing Expedia In U.S. "Expedia Group does not list hotels on the Expedia Group websites for charitable purposes." March 25, 2022