Couverture de Legal News for Mon 2/23 - SCOTUS Helms-Burton and Cuba, IEEPA Tariffs, JPMorgan's Closing of Trump's Accounts and Tesla Held to $243m Verdict

Legal News for Mon 2/23 - SCOTUS Helms-Burton and Cuba, IEEPA Tariffs, JPMorgan's Closing of Trump's Accounts and Tesla Held to $243m Verdict

Legal News for Mon 2/23 - SCOTUS Helms-Burton and Cuba, IEEPA Tariffs, JPMorgan's Closing of Trump's Accounts and Tesla Held to $243m Verdict

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This Day in Legal History: Order 9066On this day in legal history, enforcement of Executive Order 9066 began in earnest following its signing by Franklin D. Roosevelt earlier in February 1942. The order authorized the military to designate exclusion zones and remove individuals deemed security risks from certain areas of the country. In practice, it led to the forced relocation and incarceration of more than 110,000 Japanese Americans, most of whom were U.S. citizens. Families were removed from their homes, businesses were lost, and entire communities were dismantled. The government justified the policy as a matter of national security during World War II. Critics argued it was rooted in racial prejudice rather than military necessity.The constitutionality of the policy reached the Supreme Court in Korematsu v. United States. Fred Korematsu, a U.S. citizen, had refused to comply with the exclusion order and was convicted. In a 6–3 decision, the Court upheld his conviction, accepting the government’s claim that the exclusion was justified by wartime necessity. The majority deferred heavily to the executive branch, emphasizing the perceived threat on the West Coast. In dissent, several justices warned that the decision validated racial discrimination under the guise of military urgency.Decades later, the ruling came to be widely regarded as a grave error. In 1988, Congress passed the Civil Liberties Act, formally apologizing and providing reparations to surviving internees. In 2018, the Supreme Court explicitly stated that Korematsu was wrongly decided, rejecting its reasoning even though it was not formally overturned in the technical sense. The episode remains a cautionary example of how constitutional protections can erode in times of crisis.The U.S. Supreme Court is set to hear two cases concerning the scope of the Helms-Burton Act, a 1996 law that allows American companies to sue over property confiscated by Cuba after the 1959 revolution. One case involves ExxonMobil’s effort to recover more than $1 billion for oil and gas assets seized by Cuba in 1960. Exxon sued a Cuban state-owned company in 2019, alleging it continues to profit from the confiscated property. A lower court ruled that the Cuban entities could claim foreign sovereign immunity, which generally protects foreign governments from being sued in U.S. courts. Exxon has asked the Supreme Court to reverse that decision.The second case involves four cruise operators—Carnival, Royal Caribbean, Norwegian Cruise Line, and MSC Cruises—accused of unlawfully benefiting from docks in Havana that were originally built and operated by a U.S. company before being seized by Cuba. The docks were used between 2016 and 2019, after travel restrictions were eased under President Obama. A trial judge initially ruled against the cruise lines and awarded more than $100 million in damages, but an appeals court later dismissed the case, finding that the original concession had expired before the cruise lines used the property. The Supreme Court’s decisions could clarify how broadly Congress intended the Helms-Burton Act to apply and whether claimants face significant legal barriers when seeking compensation.US Supreme Court to hear Exxon bid for compensation from Cuba | ReutersU.S. Customs and Border Protection announced that it will stop collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) beginning just after midnight on Tuesday. The decision comes several days after the U.S. Supreme Court ruled that those tariffs were unlawful. The agency said it would deactivate the tariff codes tied to President Donald Trump’s IEEPA-related orders but did not explain why collections continued for days after the ruling. It also did not address whether importers who paid the duties would receive refunds.The suspension of the IEEPA tariffs coincides with the implementation of a new 15% global tariff introduced under a different statutory authority. Customs clarified that the halt applies only to the IEEPA-based tariffs and does not affect other trade measures, including those enacted under Section 232 for national security reasons or Section 301 for unfair trade practices. Economists have estimated that the now-invalidated IEEPA tariffs generated more than $175 billion in revenue and were bringing in over $500 million per day. As a result, the ruling potentially exposes the government to significant refund claims from importers.US to stop collecting tariffs deemed illegal by Supreme Court on Tuesday | ReutersJPMorgan Chase informed President Donald Trump and his hospitality company in February 2021 that it was closing their bank accounts, according to newly released documents tied to Trump’s $5 billion lawsuit against the bank and its CEO, Jamie Dimon. The letters were sent about a month after the January 6, 2021, attack on the U.S. Capitol. At the time, several businesses and organizations distanced themselves from Trump, ...
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