CITGO Asphalt Refining Co. v. Frescati Shipping Co.

[2] The spill spread downstream affecting the shoreline in more than three states (Pennsylvania, New Jersey, and Delaware), killing over 11,000 birds, temporarily shut down the Salem Nuclear Power Plant, and halted commercial use of the river for several weeks during cleanup efforts.

[5] The spill led to passage of the Coast Guard and Maritime Transportation Act of 2006 which among provisions, tripled fines resulting from oil spills from single-hulled vessels to encourage double-hull use, as well as requiring those with knowledge of obstructions in waterways to inform the Coast Guard for immediate removal.

[5] As the Oil Pollution Act allows for recovery of cleanup funds from liable parties after the matter, Frescati and the United States Government filed suit against Citgo in 2011 to recover their costs, asserting it was their responsibility to make sure the area around their docks had safe berth for the vessel.

[5] Heard in the United States District Court for the Eastern District of Pennsylvania, Judge John P. Fullam ruled in favor of Citgo, stating in his ruling that the ultimate responsible was on the party that left the anchor in the river, which was impossible to identify as any markings had long worn off from it.

[1] In the 7-2 majority opinion, Justice Sonia Sotomayor wrote that "We conclude that the language of the safe-berth clause here unambiguously establishes a warranty of safety", and thus Citgo was responsible for assuring the safe berth for the Athos I and the subsequent cleanup from the oil spill.