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In a historic legal victory, a federal jury in the Southern District of Florida awarded a Cuban American plaintiff $29.8 million against each of the four corporate defendants from Expedia in the first jury trial held under the Helms-Burton Act (Echevarría et al. v. Expedia Group, Inc. et al.).
"The verdict represents a decisive victory for the plaintiffs, who filed lawsuits under Title III of the Helms-Burton Act, which allows Cuban Americans to claim damages against entities that traffic in goods confiscated by Castro's communist dictatorship, as specified on their website by the law firm Rivero & Mestre, which won the case."
“This is a great victory not only for our client but also for the Cuban-American community as a whole, whose properties were unjustly usurped and exploited by American companies in collaboration with the Cuban communist dictatorship”, said Andrés Rivero.
“We take pride in having contributed to ensuring justice under a law that has never before been tested before a jury,” he added.
The law also provides for a tripled compensation for damages against the defendant who, having received prior notification of the claim, has not halted their activities nor compensated the owners of the confiscated goods.
The jury ruled in favor of the plaintiffs, awarding $9,950,000 in triple damages to each defendant, resulting in a total judgment of $29,850,000 against each of them.
The plaintiff: Mario Echevarría
Journalist Wilfredo Cancio, who had access to the lawsuit, specified in an article published in Café Fuerte that the beneficiary of the ruling is Mario Echevarría, a Cuban-American who became naturalized in 1983.
Echevarría claimed ownership of land located in Cayo Coco, which was expropriated from his family in 1959 as part of the Agrarian Reform Law implemented by the Cuban regime.
Accusations against Expedia Group
The lawsuit targeted Expedia Group and its subsidiaries - Hotels.com LP, Hotels.com GP, and Orbitz LLC - arguing that the digital platforms of these companies offered hotel bookings for properties built on expropriated land, gaining economic benefits without legal authorization.
In the island of Cayo Coco, located on the northern coast of Cuba, the Iberostar hotels Mojito, Iberostar Colonial, and Pullman Cayo Coco are listed in the lawsuit as being involved in the trafficking of confiscated property.
Federal Judge Federico Moreno, who presided over the case, stated in his ruling that the companies being sued “obtained economic benefits by offering reservations at these hotels, without investigating whether they were located on confiscated land.”
Lack of diligence on the part of Expedia
During the trial, an employee of Expedia testified that neither the parent company nor its subsidiaries requested documentation from the Cuban government regarding the ownership of the hotels.
They also did not consider the legal implications arising from the Helms-Burton Act when offering these services.
Possibility of appeal
Although it has not been confirmed, Expedia Group—one of the largest travel platforms in the world, based in Seattle with annual revenues exceeding $13.6 billion—could appeal the decision to a higher court.
The claim by Echevarría originated in 2019, when along with three other Cuban Americans he filed a lawsuit for properties in Varadero and Santa Cruz del Norte.
However, the case was dismissed in 2020.
In 2023, Echevarría reactivated the lawsuit individually, managing to bring it to trial.
The Helms-Burton Act, enacted in 1996 during Bill Clinton's administration, remained suspended under Title III for over two decades due to fears of diplomatic conflicts.
Its reactivation in 2019, during President Trump's first term, has opened the door to lawsuits like this one, which set precedents in the fight for rights over confiscated properties in Cuba.
Rivero & Mestre is a renowned law firm that specializes in representing clients in complex commercial disputes, both in state and federal courts in the United States, as well as in national and international arbitrations.
From its offices in Miami and New York, the firm has built a strong reputation in litigation related to financial institutions; antitrust law; intellectual property; and commercial and investment disputes in Latin America.
Frequently Asked Questions about the Expedia Case and the Helms-Burton Act
What is the Helms-Burton Law and how does it affect businesses?
The Helms-Burton Act allows U.S. citizens to sue companies that benefit from properties confiscated by the Cuban regime after 1959. This law was reactivated by the Trump administration, allowing lawsuits to be filed in the United States against entities operating on expropriated properties in Cuba.
Why was Expedia sued under the Helms-Burton Act?
Expedia was sued for offering reservations at hotels built on expropriated land in Cuba, specifically in Cayo Coco, without compensation to the original owners. The jury awarded the plaintiffs $29.8 million in triple damages.
What does the court ruling against Expedia imply?
The court ruling establishes that Expedia and its subsidiaries must pay $29.8 million to each plaintiff, setting a precedent in the use of Title III of the Helms-Burton Act. This verdict highlights the responsibility of companies to investigate the legality of the properties they operate with in Cuba.
Can Expedia appeal the court's decision?
Expedia has the option to appeal the decision to a higher judicial authority. It has not yet been confirmed whether Expedia will proceed with an appeal, but given the magnitude of the case, it is a possibility that could be explored to try to overturn the ruling.
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