The US Supreme Court on Monday affirmed a Third Circuit court opinion, holding that the plain language of the safe-berth clause in the parties’ sub-charter agreement establishes a warranty of safety.
In the final stretch of a tanker’s journey from Venezuela to New Jersey, an abandoned ship anchor punctured the tanker’s hull, causing 264,000 gallons of heavy crude oil to spill into the Delaware River. After compensation, Frescati Shipping Company, the vessel’s owner, and the US sued CARCO, the sub-charter, to recover their respective portions of the cleanup costs.
