This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
The petitioner faces an exposure of more than $140 million in potential damages.
Background and question before the Court
According to Ms. Ross, petitioner argues the safe‑berth clause is a warranty that obligates the charterer to choose a port that is actually safe, not merely a port the charterer believes to be safe after exercising due diligence.
According to Private Respondents, respondent contends that the clause’s language leaves its meaning in equipoise, allowing for different interpretations depending on context.
What each side argues
Petitioner (CITGO ASPHALT REFINING COMPANY) Position
According to Ms. Ross, the petitioner argues that the safe‑berth clause is a warranty that obligates the charterer to choose a port that is actually safe, not merely a port the charterer believes to be safe after exercising due diligence.
Respondent (FRESCATI SHIPPING COMPANY, LTD.) Position
According to Private Respondents, the respondent contends that the clause’s language leaves its meaning in equipoise, allowing for different interpretations depending on context.
What happened at oral argument
According to Justice Ginsburg, justice Ginsburg noted that the rule from the Seventh and Second Circuits has been applied for some time.
According to Justice Kagan, justice Kagan referenced the Fifth Circuit’s approach while discussing the contract language.
According to Justice Alito, justice Alito questioned how to resolve a text that can be read in two ways.
Justice Sotomayor asked why the charterer should bear the expense, risk, and peril of lighterage.
According to Justice Kavanaugh, justice Kavanaugh highlighted the contract language requiring the charterer to designate and procure a safe place or wharf.
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- be94d172e5299003fa71-r1-2740cc3996bd637f.pdforal argument transcript
Guide generated September 27, 2026. Automated validation accepted this version.