CITGO Asphalt Refining Co. v. Frescati Shipping Co.

This case came from an oil spill after the tanker Athos I hit a submerged anchor near its New Jersey berth. The Supreme Court said a safe-berth clause in this voyage charter worked as a guarantee of the ship's safety, not just a promise to use reasonable care.

The case was argued on Nov. 5, 2019, and decided on March 30, 2020, but the prompt does not provide the vote or opinion lineup.

The decision affects shipping contracts and who pays when a selected berth turns out to be unsafe. For example, a company that chooses a berth may face major cleanup or damage costs if the contract language guarantees safety.

The Supreme Court has finished this docket action. Maritime companies and lower courts now must apply this reading of safe-berth clauses in similar disputes and contract drafting.

The fight was over the meaning of a safe-berth clause in a voyage charter. The Court said it guarantees safety, not just careful effort.

It affects shipping companies, charterers, insurers, and ports. Unsafe berth choices can trigger large cleanup and damage costs under similar contract language.

The Supreme Court's work on this case is done. Lower courts and maritime businesses must follow this interpretation when resolving disputes and writing contracts.