The Cuban small and medium-sized enterprise Danaus SRL achieved a legal victory in a Florida court against the American company Overseas of the Americas Corp., following a lawsuit concerning the breach of a contract for the purchase of frozen chicken valued at $84,000.
Danaus SRL, a private company engaged in wholesale food distribution in Cuba, contracted in August 2023 for the delivery of two containers of chicken through the American company.
The agreement stipulated that the shipment was to be sent to the Port of Mariel in Havana and delivered to a state transit entity for distribution. However, the contract was breached when Overseas of the Americas Corp. sold the containers to another client for a higher price.
In statements to Univisión Noticias, attorney Karel Suárez, who represented the small and medium-sized enterprise in the lawsuit, said that this movement of goods to another buyer was interpreted as an attempt to take advantage of the geographical distance and the alleged inability of the Cuban company to assert its rights in a business transaction in the United States.
The small and medium-sized enterprise (mipyme) filed a lawsuit in a state court in Florida, and on November 8, Judge Jamie Gottman ruled in its favor. The court decision orders the U.S. company to pay $85,000 to Danaus SRL, covering the value of the contract and additional costs.
"The case shows that Cuban SMEs can file lawsuits in the United States and achieve justice, even from Cuba," Suárez noted.
However, the lawyer warned that collecting the amount could be a challenge, as Overseas of the Americas Corp. appears to be facing financial difficulties.
Danaus SRL is officially located on 3rd Avenue in Miramar, Havana. It promotes itself on social media as a "trusted wholesale food distributor" in Cuba. The company maintains an active presence on digital platforms.
This case sets a precedent in the commercial relationships between Cuban and American companies. It demonstrates that the small and medium enterprises of the island can defend their rights in international forums and that the economic embargo has aspects that have not been accurately portrayed by the island's regime.
Frequently Asked Questions about the litigation between the Cuban micro, small, and medium-sized enterprise Danaus SRL and Overseas of the Americas Corp.
What was the reason for the dispute between Danaus SRL and Overseas of the Americas Corp.?
Danaus SRL has filed a lawsuit against Overseas of the Americas Corp. for breaching a contract for the purchase of frozen chicken valued at $84,000. The American company sold the chicken containers to another client at a higher price, violating the original agreement.
What decision did the judge make in the case of Danaus SRL?
Judge Jamie Gottman ruled in favor of Danaus SRL, ordering Overseas of the Americas Corp. to pay $85,000, which covers the contract value and additional costs. This ruling demonstrates that Cuban SMEs can achieve justice in the United States, even from Cuba.
What are the challenges for Danaus SRL following their victory in the lawsuit?
Although Danaus SRL won the lawsuit, attorney Karel Suárez warned that collecting the amount could be complicated due to potential financial issues with Overseas of the Americas Corp.
What impact does this case have on trade relations between Cuba and the United States?
The case sets an important precedent, demonstrating that Cuban SMEs can defend their rights in international instances. This adds a new chapter to the commercial relations between Cuban and American companies, despite the economic embargo.
How does this case relate to the economic situation of micro, small, and medium enterprises in Cuba?
Micro, small, and medium enterprises (mipymes) in Cuba face significant challenges, such as government-imposed price regulations, which have led to shortages of essential products like chicken. This context of state control contrasts with their ability to defend their rights abroad, as demonstrated by Danaus SRL in the United States.
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