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No. 18-565October Term 2019Decided Mar 30, 2020

Docket 18-565October Term 2019 (2019–2020)

CITGO Asphalt Refining Co. v. Frescati Shipping Co.

After an oil tanker struck a submerged anchor near its New Jersey destination and spilled crude oil into the Delaware River, the ship’s owner and the federal government sought to recover cleanup costs from the companies that selected the tanker’s berth.

Case status

Current stage
Decided
Latest event
Decision released Mar 30, 2020
Case Accepted
Arguments
Decision ReleasedMar 30, 2020
What it's about

After an oil tanker struck a submerged anchor near its New Jersey destination and spilled crude oil into the Delaware River, the ship’s owner and the federal government sought to recover cleanup costs from the companies that selected the tanker’s berth. The case asked how to read the voyage charter’s "safe-berth" clause—whether it made the charterer strictly responsible for choosing a safe berth or only required reasonable care.

Question presented

Whether under federal maritime law a safe berth clause in a voyage charter contract is a guarantee of a ship's safety, as the Third Circuit below and the Second Circuit have held, or a duty of due diligence, as the Fifth Circuit has held.

Case path

United States Court of Appeals for the Third Circuit / Decision released Mar 30, 2020

Area

Business and Regulation

Timing

Decided March 30, 2020

The Court released its decision on March 30, 2020 without hearing oral argument.