7 F.4th 331
5th Cir.2021Background
- The Helms-Burton Act (Title III) permits a U.S. national who "owns the claim" to Cuban-confiscated property to sue anyone who "traffics" in that property; Presidents suspended Title III from 1996 until May 2019.
- Robert Glen (naturalized U.S. citizen) alleges ownership of Varadero, Cuba beachfront properties originally owned by his great‑grandfather, later passed to his mother and aunt; the properties were confiscated by Castro well before 1996.
- Glen alleges he inherited ownership interests in the properties in 1999 and 2011 after his aunt’s and mother’s deaths, respectively.
- American Airlines operated BookAAHotels.com and took $503.18 in commissions for bookings at hotels located on those Varadero properties; Glen sued American under Title III after the 2019 Title III reinstatement, seeking treble damages.
- The district court dismissed for lack of Article III standing, for failure to satisfy the statute’s March 12, 1996 acquisition cutoff, and for insufficiently pleading knowledge/intent; the Fifth Circuit vacated the standing dismissal but affirmed dismissal on the merits under 22 U.S.C. § 6082(a)(4)(B) because Glen acquired his claim after the 1996 cutoff.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III injury-in-fact (concreteness) | Glen: trafficking caused concrete injury analogous to unjust enrichment; statutory private right creates legally cognizable interest | American: Glen lacks a legally protected interest because Cuban confiscation extinguished any title | Held: Glen has standing; allegation of ownership and unjust-enrichment-type harm is a concrete, legally protected interest for Article III purposes. |
| Traceability | Glen: injury (unjust enrichment from bookings/commissions) is causally connected to American’s trafficking | American: injury traces only to Cuba and hotel operators, not to American’s small commissions | Held: Injury is traceable to American; alleged unjust enrichment from its bookings is causally linked to the complained conduct. |
| Statutory acquisition cutoff (22 U.S.C. § 6082(a)(4)(B)) | Glen: “acquires” should exclude passive inheritance; requires affirmative conduct (e.g., purchase) | American: “acquires” means gaining possession or control and includes inheritance; claim barred if acquired after March 12, 1996 | Held: “Acquires” includes inheritance; because Glen inherited after March 12, 1996, §6082(a)(4)(B) bars his suit — claim dismissed on merits. |
| Pleading knowledge/intent under Helms-Burton | Glen: alleged trafficking and damages sufficed | American: complaint failed to plead requisite knowledge/intent | Held: Court did not reach this issue because the statutory cutoff disposition was dispositive. |
Key Cases Cited
- Cedar Point Nursery v. Hassid, 141 S. Ct. 2063 (2021) (framing the importance of property rights)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016) (concreteness and injury-in-fact principles)
- TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2021) (assessing closeness of asserted harms to traditional torts)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (standing requirements)
- Webb v. City of Dallas, 314 F.3d 787 (5th Cir. 2002) (alleged property interest suffices for Article III standing)
- Federal Republic of Germany v. Philipp, 141 S. Ct. 703 (2021) (act-of-state doctrine principles)
- Trump v. Hawaii, 138 S. Ct. 2392 (2018) (traceability/causal connection for standing)