Greenberg Traurig Wins Wrongful Seizure of Imported Goods Cases for Castro Business Enterprises Valued at $3.148M

MIAMI, March 20, 2026 /PRNewswire/ -- A Greenberg Traurig, LLP team led by Litigation Practice Shareholder Francisco O. Sánchez and Associate Carlos J. Andréu-Collazo triumphed March 13 in the U.S. District Court for the District of Puerto Rico for importer Castro Business Enterprises (CBE) in two related, multiyear wrongful seizure of imported goods cases (19-cv-1550 and 19-cv-1551). The decision brings clarity to several issues involving the federal government's statutory authority to seize property in international trade matters.

The virtually identical cases, which relate to CBE's importing two shipments of cigarettes from Canada that were seized by U.S. Customs and Border Protection (CBP) in 2018 in San Juan, were brought when the government alleged CBE failed to comply with import requirements set forth in statute 19 U.S.C. § 1681a.

The government contended that CBE, as the importer of the cigarettes into Puerto Rico, was required to submit and obtain approval of its own surgeon general health warning rotational plan from the Federal Trade Commission (FTC). However, the language of Section 1681a, together with the governing regulatory framework, requires only that an importer certify compliance with an FTC-approved rotational plan — not that the importer independently develop and secure approval of its own plan – which CBE had done.

Although a magistrate judge in the U.S. District Court for the District of Puerto Rico initially issued a report and recommendation in favor of the government, District Judge Silvia Carreño-Coll rejected that recommendation. The court instead granted summary judgment in CBE's favor, holding that CBE did not violate Section 1681a and fully complied with its requirements. The court further ordered the government to return the value of the wrongfully seized property — which perished in government custody during the lengthy case — based on the appraisal conducted by CBP at the time of seizure.

The total amount of the award between both cases is $3.148 million, which represents the total CBP appraised value of the property at seizure. A yet-to-be-determined amount of attorneys' fees and costs were granted by the court pursuant to the mandatory fee-shifting language contained in 28 USC § 2465(b)(1). 

"Prevailing for CBE is truly rewarding, not only for its importance to the company, but also for the many importers that may find more clarity in requirements for the shipment of their property as a result of this decision," Sánchez and Andréu-Collazo said in a joint statement.

About Greenberg Traurig's Litigation Practice: Greenberg Traurig's Litigation Practice includes a team of more than 800 attorneys. The firm's trial lawyers regularly appear in state and federal courts throughout the country, as well as in appellate courts and before international arbitration panels. They work closely with in-house counsel to develop a strategy that best fits a litigation cost and proficiency model appropriate to the client's unique needs and goals.

About Greenberg Traurig: Greenberg Traurig, LLP has approximately 3,100 lawyers across 51 locations in the United States, Europe, the Middle East, Latin America, and Asia. The firm's broad geographic and practice range enables the delivery of innovative and strategic legal services across borders and industries. Recognized as a 2025 BTI "Best of the Best Recommended Law Firm" by general counsel for trust and relationship management, Greenberg Traurig is consistently ranked among the top firms on the Am Law Global 100, NLJ 500, and Law360 400. Greenberg Traurig is also known for its philanthropic giving, culture, innovation, and pro bono work. Web: www.gtlaw.com.

SOURCE Greenberg Traurig, LLP