Exxon Mobil (XOM) argued at the U.S. Supreme Court that it is entitled to compensation for the company’s oil and gas assets that were seized by the Cuban government in 1960, Reuters reported Monday.
The company is seeking more than $1B in compensation from Cuban state-owned entities for oil and gas assets confiscated by Cuba’s government; at the time the assets were taken, the loss was valued at $70M, but Exxon’s (XOM) current claim is worth much more because of interest and the potential for enhanced damages.
The Helms-Burton Act allows U.S. nationals to bring lawsuits in federal court against anyone who “traffics in property which was confiscated by the Cuban Government on or after January 1, 1959.”
The Court heard arguments in two cases concerning the scope of the Helms-Burton Act; the other case involves whether four cruise operators should be liable for using docks built by an American company that Cuba also seized in 1960.
A Supreme Court ruling in favor of Exxon (XOM) or the cruise line companies could open the door to other claims for compensation over the expropriation of assets in Cuba.