Havana Docks Corp. v. Carnival Corp.

592 F.Supp.3d 1088

HAVANA DOCKS CORPORATION, Plaintiff,

v.CARNIVAL CORPORATION, Defendant.

Havana Docks Corporation, Plaintiff,

v.MSC Cruises SA, MSC Cruises SA Co., and MSC Cruises (USA) Inc., Defendants.

Havana Docks Corporation, Plaintiff,

v.Royal Caribbean Cruises, Ltd., Defendant.

Havana Docks Corporation, Plaintiff

v.Norwegian Cruise Line Holdings, Ltd., Defendant.

Case No. 19-cv-21724 BLOOM/MCALILEY

Case No. 19-cv-23588 BLOOM/LOUIS

Case No. 19-cv-23590 BLOOM/LOUIS

Case No.: 19-cv-23591 BLOOM/LOUIS

United States District Court, S.D. Florida.

Signed March 21, 2022

Francisco Raul Maderal, Jr., Stephanie Anne Casey, Aziza F. Elayan-Martinez, Zachary Andrew Lipshultz, Roberto Martinez, Colson Hicks Eidson, Coral Gables, FL, Rodney Stuart Margol, Margol, Margol, PA, Jacksonville Beach, FL, Thomas Allen Kroeger, The Florida Bar, Miami, FL, for Plaintiff Havana Docks Corporation in 19-cv-21724.

Scott Daniel Ponce, Holland & Knight, Luis Emilio Llamas, Jones Walker LLP, Pedro Armando Freyre, Akerman LLP, Miami, FL, George J. Fowler, III, Pro Hac Vice, Jones Walker, LLP, New Orleans, LA, Meredith L. Schultz, Stuart Harold Singer, Corey Patrick Gray, Pascual Armando Oliu, Boies, Schiller & Flexner, LLP, Fort Lauderdale, FL, for Defendant Carnival Corporation in 19-cv-21724.

Aziza F. Elayan-Martinez, Stephanie Anne Casey, Zachary Andrew Lipshultz, Roberto Martinez, Colson Hicks Eidson, Coral Gables, FL, Rodney Stuart Margol, Margol, Margol, PA, Jacksonville Beach, FL, Thomas Allen Kroeger, The Florida Bar, Miami, FL, for Plaintiff in 19-cv-23588, 19-cv-23590.

Andrew T. Hernacki, Pro Hac Vice, James Douglas Baldridge, Justin B. Nemeroff, Pro Hac Vice, Venable LLP, Washington, DC, for Defendants MSC Cruises SA CO in 19-cv-23588, MSC Cruises (USA) Inc. in 19-cv-23588.

James Douglas Baldridge, Venable LLP, Washington, DC, for Defendant MSC Cruises SA in 19-cv-23588.

Sanford Lewis Bohrer, Scott Daniel Ponce, Holland & Knight, Miami, FL, Benjamin Anthony Taormina, Holland and Knight, Fort Lauderdale, FL, Caitlin F. Saladrigas, Holland & Knight LLP, West Palm Beach, FL, for Defendant in 19-cv-23590.

Aziza F. Elayan-Martinez, Stephanie Anne Casey, Zachary Andrew Lipshultz, Roberto Martinez, Colson Hicks Eidson, Coral Gables, FL, Thomas Allen Kroeger, The Florida Bar, Miami, FL, for Plaintiff in 19-cv-23591.

Allen Paige Pegg, Alvin F. Lindsay, III, Richard C. Lorenzo, Hogan Lovells US LLP, Miami, FL, for Defendant in Hogan Lovells LLP in 19-cv-23591.

BETH BLOOM, UNITED STATES DISTRICT JUDGE

TABLE OF CONTENTS

I. STATUTORY AND REGULATORY BACKGROUND... 1106

A. Relevant Statutes... 1107

1. International Claims Settlement Act... 1107

2. Cuban Democracy Act... 1107

3. LIBERTAD Act... 1107

4. Trade Sanctions Reform and Export Enhancement Act... 1108

B. Relevant Regulations... 1108

1. Cuban Asset Control Regulations... 1108

2. OFAC's CACR Amendments... 1109

II. PROCEDURAL BACKGROUND... 1112

A. Havana Docks’ Allegations... 1112

B. The Omnibus Summary Judgment Motions... 1114

1. Defendants’ Omnibus Motion... 1114

2. Havana Docks’ Omnibus Motion... 1114

C. The Individual Summary Judgment Motions... 1115

1. Havana Docks... 1115

2. Carnival... 1116

3. MSC... 1116

4. Royal Caribbean... 1117

5. Norwegian... 1117

III. MATERIAL FACTS... 1117

A. Havana Docks... 1117

B. Confiscation of the Terminal by the Cuban Government... 1120

C. The Concession and the Certified Claim... 1120

D. Defendants and Related Entities... 1122

1. Carnival... 1122

2. MSC... 1123

3. Royal Caribbean... 1123

4. Norwegian... 1123

E. Specific and/or General Licenses... 1124

1. Carnival... 1124

2. MSC... 1126

3. Royal Caribbean... 1126

4. Norwegian... 1127

F. Defendants’ Use of the Terminal... 1128

1. Carnival... 1128

2. MSC... 1128

3. Royal Caribbean... 1129

4. Norwegian... 1129

G. Defendants’ Contracts and Payments to Cuban Entities... 1129

1. Carnival... 1129

2. MSC... 1130

3. Royal Caribbean... 1131

4. Norwegian... 1131

H. Defendants’ Shore Excursions... 1132

1. Carnival... 1132

2. MSC... 1134

3. Royal Caribbean... 1137

4. Norwegian... 1140

I. Havana Docks’ Notice... 1143

J. Defendants’ Knowledge of the LIBERTAD Act and the Certified Claim... 1144

K. Defendants’ Revenues and Profits... 1144

1. Carnival... 1144

2. MSC... 1144

3. Royal Caribbean... 1145

4. Norwegian... 1145

L. Other Cruises to Cuba... 1145

M. Defendants’ Experts... 1145

1. Ambar Diaz... 1145

2. Julian Ackert... 1146

IV. LEGAL STANDARD... 1147

A. Summary Judgment Standard... 1147

B. Daubert Standard... 1149

C. Review of Report and Recommendation Standard... 1150

V. DISCUSSION... 1150

A. "Person"... 1150

B. "Traffics"... 1150

1. Scope of Havana Docks’ Claim... 1151

a) Carnival... 1151

b) Royal Caribbean... 1152

c) Norwegian... 1152

d) MSC... 1153

2. Trafficking Activity... 1153

3. "Knowingly and Intentionally"... 1156

C. Property Confiscated by Cuban Government... 1161

D. United States National... 1161

E. Ownership of Claim to Confiscated Property... 1165

F. Trafficking After November 1, 1996... 1170

G. Defendants’ Affirmative Defenses... 1170

1. Lawful Travel Exception... 1170

a) "Lawful Travel" Prong... 1170

b) "Necessary to the conduct of such travel" Prong... 1189

2. Ex Post Facto Clause... 1193

3. The Fifth Amendment's Due Process Clause... 1193

4. Expiration of the Concession... 1194

5. Failure to State a Claim... 1194

6. Lack of Knowledge and Intent... 1194

7. Lack of Standing Due to Lack of Injury-in-Fact... 1195

8. Lack of Indemnity Right... 1196

9. Lack of Causation... 1196

10. Lack of Use of Claimed Property... 1196

11. Article II of the United States Constitution... 1197

12. Act of State Doctrine... 1197

13. Extraterritorial Application of United States Law... 1198

14. Election of Remedies under Title III... 1198 15. Failure to Join an Indispensable Party... 1199

16. Purpose of Certified Claim... 1199

17. Statute of Limitations or Repose... 1199

18. Eighth Amendment... 1201

19. Non-U.S. Sailings... 1202

VI. CONCLUSION... 1202

OMNIBUS ORDER

THIS CAUSE is before the Court upon ten (10) pending summary judgment motions filed in the four (4) above-styled cases. The Court conducted a hearing on each summary judgment motion over the course of two (2) days. See, e.g. , Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF Nos. [442], [449]. The Court has reviewed the parties’ memoranda and statements of facts, the record in each case, the applicable law, and is otherwise fully advised.

Plaintiff Havana Docks Corporation ("Havana Docks") filed separate actions to recover damages against Defendants Carnival Corporation d/b/a Carnival Cruise Line ("Carnival"); MSC Cruises S.A. ("MSC SA"), MSC Cruises SA Co. ("MSC Co."), and MSC Cruises (USA) Inc. ("MSC USA") (collectively, "MSC"); Royal Caribbean Cruises Ltd. ("Royal Caribbean"); and Norwegian Cruise Line Holdings Ltd. ("Norwegian"). The Defendants are four cruise operators whose ships used the Havana Cruise Port Terminal, also called the Sierra Maestra Terminal (the "Terminal"), when traveling to Havana, Cuba. Havana Docks claims each Defendant unlawfully trafficked in property confiscated by the Cuban Government—the Terminal and its piers—in violation of the Cuban Liberty and Democratic Solidarity Act of 1996, 22 U.S.C. §§ 6021, et seq. , referred to as the LIBERTAD Act or Helms-Burton Act.

Pending before the Court are the following motions for summary judgment:

(1) Defendants’ Omnibus Motion for Summary Judgment, Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF No. [330]; Havana Docks Corporation v. MSC Cruises, SA, et al. , No. 19-cv-23588, ECF No. [216]; Havana Docks Corporation v. Royal Caribbean Cruises Ltd. , No. 19-cv-23590, ECF No. [137]; Havana Docks Corporation v. Norwegian Cruise Line Holdings, Ltd. , No. 19-cv-23591, ECF No. [227];

(2) Plaintiff Havana Docks Corporation's Omnibus Motion for Partial Summary Judgment, Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF No. [336]; Havana Docks Corporation v. MSC Cruises, SA, et al. , No. 19-cv-23588, ECF No. [222]; Havana Docks Corporation v. Royal Caribbean Cruises Ltd. , No. 19-cv-23590, ECF No. [143]; Havana Docks Corporation. v. Norwegian Cruise Line Holdings, Ltd. , No. 19-cv-23591, ECF No. [232];

(3) Carnival Corporation's Individual Motion for Summary Judgment, Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF No. [324];

(4) Plaintiff Havana Docks Corporation's Individual Motion for Summary Judgment against Carnival Corporation, Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF No. [333];

(5) MSC Cruises’ Individual Motion for Summary Judgment, Havana Docks Corporation v. MSC Cruises, SA, et al. , No. 19-cv-23588, ECF No. [209];

(6) Plaintiff Havana Docks Corporation's Individual Motion for Summary Judgment against MSC Cruises, SA & MSC Cruise (USA). Inc., Havana Docks Corporation v. MSC Cruises, SA, et al., No. 19-cv-23588, ECF No. [225]; (7) Defendant's [Royal Caribbean Cruises, Ltd.] Individual Motion for Summary Judgment, Havana Docks Corporation v. Royal Caribbean Cruises Ltd. , No. 19-cv-23590, ECF No. [132];

(8) Plaintiff Havana Docks Corporation's Individual Motion for Summary Judgment Against Royal Caribbean Cruises, Ltd., Havana Docks Corporation v. Royal Caribbean Cruises Ltd. , No. 19-cv-23590, ECF No. [142];

(9) Plaintiff Havana Docks Corporation's Individual Motion for Summary Judgment against Defendant Norwegian Cruise Line, Ltd., Havana Docks Corporation v. Norwegian Cruise Line Holdings, Ltd. , No. 19-cv-23591, ECF No. [229]; and

(10) Norwegian's Individual Motion for Summary Judgment, Havana Docks Corporation. v. Norwegian Cruise Line Holdings, Ltd. , No. 19-cv-23591, ECF No. [230].

Also before the Court, and pertinent to the summary judgment motions, is Havana Docks’ Motion to Exclude the Expert Opinions of Julian Ackert and Pablo Spiller. Havana Docks Corporation v. Carnival Corporation , No. 19-cv-21724, ECF No. [328]; Havana Docks Corporation v. MSC Cruises, SA, et al. , No. 19-cv-23588, ECF No. [214]; Havana Docks Corporation v. Royal Caribbean Cruises Ltd. , No. 19-cv-23590, ECF...