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[deet49]

Helms Burton How $9M becomes $800M

The base damages follow a prescriptive format and they use the greater of:

the current market value of the confiscated property;
the market value of the property when confiscated, plus interest;
if the claim is certified by the Foreign Claims Settlement Commission (FCSC), that amount is used, plus interest.
Title III can lead to significant exposure for trafficking[1] as the claim may enable the claimant to recoup the entire value of the property plus interest, not just compensation based on the defendant’s benefit from the property in question.

For example, the claim against Carnival Cruise Lines is based on the company’s use of a pier which was confiscated in 1959. The claim is for the value of the pier plus interest, which means Carnival is facing a claim of $9 million plus 60 years compound interest (interest is set at six per cent by the FCSC), and the possibility of being hit with treble damages[2] which could amount to a sum in excess of $800 million. This is despite Carnival only using the pier since 2016.

[1] Trafficking is defined in section 4(13) and includes knowingly and intentionally benefitting from a confiscated property without the authorisation of a US national that holds a claim on the property.

[2] Under section 302 (3)(C)(ii) the penalty can be three times the amount determined applicable under paragraph (1)(A)(i).

Libertad Act https://www.treasury.gov/resource-center/sanctions/documents/libertad.pdf

[3] Knowingly being defined as “with knowledge or having reason to know” under section 4(9).

https://www.ukfinance.org.uk/news-and-insight/blogs/cuba-sanctions-and-helms-burton-title-iii

if this is the case then $52M becomes $4,628M
SupercaliFRAZalistic