CITGO Asphalt Refining Co. v. Frescati Shipping Co.
CITGO Asphalt Refining Co. v. Frescati Shipping Co.
Opinion
*1085 In 2004, the M/T Athos I , a 748-foot oil tanker, allided 1 with a nine-ton anchor abandoned on the bed of the Delaware River. The anchor punctured the tanker's hull, causing 264,000 gallons of heavy crude oil to spill into the river. As required by federal statute, respondents Frescati Shipping Company-the Athos I 's owner-and the United States covered the costs of cleanup. They then sought to reclaim those costs from petitioners CITGO Asphalt Refining Company and others (collectively CARCO), which had chartered the Athos I for the voyage that occasioned the oil spill. According to Frescati and the United States, CARCO had breached a contractual "safe-berth clause" obligating CARCO
*1086 to select a "safe" berth that would allow the Athos I to come and go "always safely afloat."
The question before us is whether the safe-berth clause is a warranty of safety, imposing liability for an unsafe berth regardless of CARCO's diligence in selecting the berth. We hold that it is.
I
A
During the relevant period, the Athos I was the subject of a series of contracts involving three parties: Frescati, Star Tankers, and CARCO. Frescati owned the Athos I . Star Tankers, an operator of tanker vessels, contracted with Frescati to charter the Athos I for a period of time. CARCO then contracted with Star Tankers to subcharter the Athos I for the inauspicious voyage resulting in the oil spill.
Pertinent here is the subcharter agreement between Star Tankers and CARCO. In admiralty, such contracts to charter a vessel are termed "charter parties." Like many modern charter parties, the agreement between Star Tankers and CARCO was based on a standard industry form contract. It drew essentially verbatim from a widely used template known as the ASBATANKVOY form, named after the Association of Ship Brokers & Agents (USA) Inc. (ASBA) trade association that publishes it.
At the core of the parties' dispute is a clause in the charter party requiring the charterer, CARCO, to designate a safe berth at which the vessel may load and discharge cargo. This provision, a standard feature of many charter parties, is customarily known as a safe-berth clause. The safe-berth clause here provides, as relevant, that "[t]he vessel shall load and discharge at any safe place or wharf, ... which shall be designated and procured by the Charterer, provided the Vessel can proceed thereto, lie at, and depart therefrom always safely afloat, any lighterage being at the expense, risk and peril of the Charterer." Addendum to Brief for Petitioners 8a. 2 The charter party separately requires CARCO to direct the Athos I to a "safe por[t]" along the Atlantic seaboard of the United States. Id. , at 24a.
Pursuant to the charter party, CARCO designated as the berth of discharge its asphalt refinery in Paulsboro, New Jersey, on the shore of the Delaware River. In November 2004, the Athos I set out on a 1,900-mile journey from Puerto Miranda, Venezuela, to Paulsboro, New Jersey, carrying a load of heavy crude oil. The vessel was in the final 900-foot stretch of its journey when an abandoned ship anchor in the Delaware River pierced two holes in the vessel's hull. Much of the Athos I 's freight drained into the river.
B
After the Exxon-Valdez oil spill in 1989, Congress passed the Oil Pollution Act of 1990 (OPA),
Although a statutorily responsible party must pay cleanup costs without regard to fault, it may pursue legal claims against any entity allegedly at fault for an oil spill. §§ 2710, 2751(e). So may the Fund: By reimbursing a responsible party, the Fund becomes subrogated to the responsible party's rights (up to the amount reimbursed to the responsible party) against any third party allegedly at fault for the incident. §§ 2712(f), 2715(a).
As owner of the Athos I , Frescati was deemed a "responsible party" for the oil spill under OPA. Frescati worked with the U.S. Coast Guard in cleanup efforts and covered the costs of the cleanup. As a result, Frescati's liability was statutorily limited to $45 million, and the Fund reimbursed Frescati for an additional $88 million that Frescati paid in cleanup costs.
C
Following the cleanup, Frescati and the United States each sought recovery against CARCO: Frescati sought to recover the cleanup costs not reimbursed by the Fund, while the United States sought to recover the amount disbursed by the Fund. As relevant here, both Frescati and the United States claimed that CARCO had breached the safe-berth clause by failing to designate a safe berth, and thus was at fault for the spill.
After a complicated series of proceedings-including a 41-day trial, a subsequent 31-day evidentiary hearing, and two appeals-the Court of Appeals for the Third Circuit found for Frescati and the United States. The court first concluded that Frescati was an implied third-party beneficiary of the safe-berth clause in the charter party between CARCO and Star Tankers, thereby allowing the breach-of-contract claims by Frescati and the United States to proceed against CARCO.
In re Frescati Shipping Co.
,
We granted certiorari, 587 U.S. ----,
II
Maritime contracts "must be construed like any other contracts: by their terms and consistent with the intent of the parties."
*1088
Norfolk Southern R. Co. v. James N. Kirby, Pty Ltd.
,
A
Our analysis starts and ends with the language of the safe-berth clause. That clause provides, as relevant, that the charterer "shall ... designat[e] and procur[e]" a "safe place or wharf," "provided [that] the Vessel can proceed thereto, lie at, and depart therefrom always safely afloat." Addendum to Brief for Petitioners 8a. As even CARCO acknowledges, the clause plainly imposes on the charterer at least some "duty to select a 'safe' berth." Brief for Petitioners 21. Given the unqualified language of the safe-berth clause, it is similarly plain that this acknowledged duty is absolute. The clause requires the charterer to designate a "safe" berth: That means a berth "free from harm or risk." Webster's Collegiate Dictionary 1030 (10th ed. 1994); see also New Oxford American Dictionary 1500 (E. Jewell & F. Abate eds. 2001) ("safe" means "protected from or not exposed to danger or risk"). And the berth must allow the vessel to come and go "always" safely afloat: That means afloat "at all times" and "in any event." Webster's Collegiate Dictionary, at 35; see also New Oxford American Dictionary, at 47 ("always" means "at all times; on all occasions"). Selecting a berth that does not satisfy those conditions constitutes a breach. The safe-berth clause, in other words, binds the charterer to a warranty of safety. 3
No matter that the safe-berth clause does not expressly invoke the term "warranty." It is well settled as a matter of maritime contracts that "[s]tatements of fact contained in a charter party agreement relating to some material matter are called warranties," regardless of the label ascribed in the charter party. 22 Williston § 58.11, at 40-41 (2017); see also
*1089
Davison v. Von Lingen
,
Here, the safety of the selected berth is the entire root of the safe-berth clause: It is the very reason for the clause's inclusion in the charter party. And crucially, the charterer's assurance of safety is not subject to qualifications or conditions. Under any conception of materiality and any view of the parties' intent, the charterer's assurance surely counts as material. That leaves no doubt that the safe-berth clause establishes a warranty of safety, on equal footing with any other provision of the charter party that invokes express warranty language. 4
CARCO resists this plain reading of the safe-berth clause, arguing instead that the clause contains an implicit limitation: The clause does not impose "strict liability," says CARCO, or "liability without regard to fault." Brief for Petitioners 23, 25. In effect, CARCO interprets the safe-berth clause as imposing a mere duty of due diligence in the selection of the berth. See Tr. of Oral Arg. 19-20 (arguing that "[CARCO] did [its] due diligence" in "selecting the port or the berth");
Although contract law generally does not, by its own force, limit liability based on tort concepts of fault, parties are of course free to contract for such limitations. See Restatement (Second), at 309 (obligor who wishes to avoid strict liability for breach may "limi[t] his obligation by
*1090
agreement"). Here, however, the safe-berth clause is clear that the parties contracted for no such thing. CARCO does not identify-nor can we discern-any language in the clause hinting at "due diligence" or related concepts of "fault." That omission is particularly notable in context: Where the parties intended to limit obligations based on due diligence elsewhere in the charter party, they did so expressly. See Addendum to Brief for Petitioners 4a (providing that the vessel "b[e] seaworthy, and hav[e] all pipes, pumps and heater coils in good working order, ... so far as the foregoing conditions can be attained by the exercise of due diligence");
Unable to identify any liability-limiting language in the safe-berth clause, CARCO points to a separate "general exceptions clause" in the charter party that exempts a charterer from liability for losses due to "perils of the seas."
Likewise immaterial is another clause of the charter party that requires Star Tankers to obtain oil-pollution insurance. According to CARCO, that clause evidences the parties' intent to relieve CARCO of oil-spill liability under the safe-berth *1091 clause. But the oil-pollution insurance that Star Tankers must obtain covers risks beyond simply those attendant to the selection of an unsafe berth. And CARCO's reading of the insurance clause (as relieving CARCO of oil-spill liability) does not square with its reading of the safe-berth clause (as imposing such liability when CARCO fails to exercise due diligence).
Finally, CARCO offers an alternative interpretation of the safe-berth clause that focuses on the vessel master's right instead of the charterer's duty. This alternative interpretation proceeds from the subclause specifying that the selected berth be one that the vessel may "proceed thereto, lie at, and depart therefrom always safely afloat, any lighterage [
i.e.
, transfer of goods between vessels] being at the expense, risk and peril of the Charterer."
The dissent, too, offers an alternative interpretation. It claims that if the safe-berth clause binds the charterer to a warranty of safety, the clause must bind the vessel master to effectively the same warranty-due to the clause's statement that " '[t]he vessel shall load and discharge at [a] safe place or wharf.' " Post , at ---- (quoting Addendum to Brief for Petitioners 8a). Because that would "creat[e] contradictory warranties of safety," the dissent continues, the safe-berth clause must not bind the charterer to a warranty of safety (or, apparently, impose an obligation on the charterer at all). Post , at ----. This conclusion does not follow because the conflict diagnosed by the dissent does not exist.
The safe-berth clause says that "[t]he vessel shall load and discharge at any safe place or wharf, ... which shall be designated and procured by the Charterer." Addendum to Brief for Petitioners 8a. Plainly, that means that the "safe place or wharf ... shall be designated and procured by the Charterer."
*1092 We instead take the safe-berth clause at face value. It requires the charterer to select a safe berth, and that requirement here amounts to a warranty of safety.
B
CARCO's remaining arguments point to authorities that have purportedly construed safe-berth clauses to contain limitations on liability. These arguments find no foothold in the language of the charter party at issue here. And none is otherwise convincing.
CARCO asserts, for instance, that a leading admiralty treatise has urged that safe-berth clauses ought not be interpreted as establishing a warranty. See G. Gilmore & C. Black, Law of Admiralty § 4-4, p. 205 (2d ed. 1975) (Gilmore & Black). Gilmore and Black's position, however, stemmed from their belief that vessel masters or vessel owners are generally better positioned than charterers to bear the liability of an unsafe berth. See
CARCO next contends that in
Atkins v. Disintegrating Co.
, 85 U.S. (18 Wall.) 272,
Also misplaced is CARCO's reliance on
Orduna S. A.
,
More consistent with traditional contract analysis is the Second Circuit's long line of decisions interpreting the language of unqualified safe-berth clauses to embody an express warranty of safety. See,
e.g.
,
Paragon Oil Co.
,
III
We conclude that the language of the safe-berth clause here unambiguously establishes a warranty of safety, and that CARCO has identified "no reason to contravene the clause's obvious meaning."
Kirby
,
* * *
For the foregoing reasons, we conclude that the plain language of the safe-berth clause establishes a warranty of safety and therefore affirm the judgment of the Third Circuit.
It is so ordered.
Justice THOMAS, with whom Justice ALITO joins, dissenting.
The majority concludes that the safe-berth clause in the contract at issue unambiguously *1094 created a warranty of safety by the charterer. Although this interpretation provides a clear background rule for the maritime industry to contract against, it is the wrong rule and finds no basis in the contract's plain text. I would hold that the plain language of the safe-berth clause contains no warranty of safety and remand for factfinding on whether industry custom and usage establish such a warranty in this case. Accordingly, I respectfully dissent.
I
In 2001, Star Tankers Inc. (Star) entered into a voyage charter party with CITGO Asphalt Refining Company (CARCO). That contract included a safe-berth clause that provided:
"SAFE BERTHING - SHIFTING. The vessel shall load and discharge at any safe place or wharf, or alongside vessels or lighters reachable on her arrival, which shall be designated and procured by the Charterer, provided the Vessel can proceed thereto, lie at, and depart therefrom always safely afloat, any lighterage being at the expense, risk and peril of the Charterer." Addendum to Brief for Petitioners 8a.
I agree with the majority that we must interpret the safe-berth clause "by [its] terms and consistent with the intent of the parties."
Norfolk Southern R. Co. v. James N. Kirby, Pty Ltd.
,
A
The safe-berth clause sets out the rights and obligations of the vessel master and the charterer. The clause requires the vessel master to "load and discharge at [a] safe place or wharf," but it also gives the master the right to refuse to proceed if the vessel cannot "lie at, and depart therefrom always safely afloat." Addendum to Brief for Petitioners 8a. The charterer has the right to "designat[e]" a "safe place or wharf " for discharge.
This reading is consistent with this Court's prior decisions. The Court has interpreted safe-berth clauses as providing a limit on the "right to select a dock."
*1095
Mencke v. Cargo of Java Sugar
,
Thus, under the plain language of the safe-berth clause, the vessel master has a duty of discharge and right of refusal, while the charterer has a right of selection and duty to pay for lighterage.
B
The majority does not disagree that the safe-berth clause confers these duties and rights. Quite the opposite. It recognizes our precedents as embracing this understanding. Ante , at ----. The majority concludes, however, that in addition to the rights of selection and refusal, the language of the safe-berth clause "unambiguously" establishes a warranty of safety by the charterer. Ante , at ----. With this, I cannot agree.
1
The majority first concludes that the safe-berth clause contains an "express prescription of a warranty of safety." Ante , at ----; see also ante, at ----. This assertion finds no support whatsoever in the plain language of the clause.
First of all, the contract between Star and CARCO contains no express warranty of safety by the charterer, though the parties repeatedly used express language to create warranties elsewhere in the contract. See Addendum to Brief for Petitioners 26a ("Charterer's warrant ..."), 30a ("Owners warrant ..."), ibid . ("Owner warrants ..."), 31a ("Owner warrants ..."), 41a ("Owner warrants ..."), 42a ("Owner warrants ..."), 43a ("Owner warrants ..."), 44a ("Owner warrants ..."), 45a ("Owner warrants ..."). In contrast, they did not state that the charterer "warrants" the safety of the place of discharge in the safe-berth clause. As the majority obliquely recognizes-when trying to rebut a different argument-"[t]hat omission is particularly notable in context: Where the parties intended to [create warranties] elsewhere in the charter party, they did so expressly." Ante , at ----. "That the parties did not do so in the safe-berth clause specifically is ... proof that they did not intend for such a ... limitation to inhere impliedly." Ante , at ---- - ----. 2
But even setting aside this evidence of the parties' intent (as the majority does), the safe-berth clause contains no language that can be construed to create a warranty of safety. Nor does the clause so much as suggest that the charterer is liable for all damages arising out of unsafe port conditions. In fact, the trade association that promulgated the ASBATANKVOY form used in this case specifically acknowledged that the language of "the clause does not specify whether the charterer absolutely *1096 warrants the safety of the berth." Brief for Maritime Law Association of the United States and the Association of Ship Brokers & Agents (USA) Inc. as Amici Curiae on Pet. for Cert. 19 (emphasis added).
Notwithstanding this, the majority states that the clause "requires the charterer to designate a 'safe' berth" and that requirement "binds the charterer to a warranty of safety."
Ante
, at ----. But certainly not every obligation in a contract is a warranty. See
Brooks, Tarlton, Gilbert, Douglas & Kressler v. United States Fire Ins. Co.
,
By conflating an action with an outcome, the majority converts every obligation tangentially related to safety into a warranty of safety. Consider the contract in this case, for example. If the language stating that the charterer "shall ... designat[e] and procur[e]" a "safe place or wharf " creates a warranty of safety, then so does the language stating that "[t]he vessel shall load and discharge at [a] safe place or wharf." Addendum to Brief for Petitioners 8a. There is no textual reason that an obligation to "designat[e]" is any different from an obligation to "discharge."
In a contract replete with express language creating warranties, I would not construe the plain language of the safe-berth clause as indirectly creating contradictory warranties of safety. And I certainly cannot agree with the majority's conclusion that the safe-berth clause "unambiguously" establishes a warranty of safety by the charterer. Ante , at ----.
2
Perhaps recognizing the weakness of its assertion that the safe-berth clause contains a duty or warranty of safety, the majority pivots to an independent legal theory. It claims that the safe-berth clause constitutes a material statement of fact and therefore creates a warranty. Ante , at ----. The majority's invocation of this theory is puzzling, to say the least.
As an initial matter, this issue was not preserved in the Court of Appeals, which, understandably, did not address the question.
In re Frescati Shipping Co., Ltd.
,
Even setting aside forfeiture, the majority's analysis is questionable in multiple respects. First, the majority asserts that "the safe-berth clause contains a statement of material fact regarding the condition of the berth selected by the charterer." Ante , at ----. Not so. The safe-berth clause says nothing about the safety of the port actually selected by CARCO (the Paulsboro berth), or any specific berth for that matter. It states only that the charter "shall ... designat[e]" a place or wharf. The majority infers from CARCO's selection of the Paulsboro berth that CARCO believed the place or wharf was safe. But that is not a statement of fact; it is an inference. I hesitate to equate the two without briefing on the issue, or even a single example of a court adopting this approach.
Second, even assuming the safe-berth clause contains a statement of fact, it is not clear that the Court is in a position to decide whether that statement of fact is "material." Many jurisdictions appear to treat materiality as a question of fact when determining whether a statement creates a warranty.
Royal Bus. Machines, Inc. v. Lorraine Corp.
,
*1098
United States v. Gaudin
,
Third, assuming the contract contains a statement of fact regarding the safety of the berth and further assuming that materiality is a question of law, I am unpersuaded by the majority's materiality analysis. Materiality must turn at least in part on a statement's "tendency to induce the making of the contract." 22 R. Lord, Williston on Contracts § 58.11, p. 41 (4th ed. 2017). The majority's opinion says nothing about that (likely fact-driven) question. It first states that the safety of the selected berth is "the entire root of the safe-berth clause" and "the very reason for the clause's inclusion." Ante , at ----. Even accepting the majority's interpretation, merely proving that a statement is included in a contract does not mean that it is material. If that were the law, then every statement in a contract would be material and therefore constitute a warranty. That cannot be right. The majority next concludes that "[u]nder any conception of materiality and any view of the parties' intent, the charterer's assurance [of safety with no conditions] surely counts as material." Ibid . But what is the basis for this conclusion? The majority's experience negotiating maritime contracts? It defies reality to assert that a standard provision in a form contract-which has been subject to different interpretations for nearly three decades-induced every single vessel master using that form contract to enter into the agreement. We should recognize this for what it is: an unsupported judicial pronouncement on a question of fact.
The majority's attempt to shore up its analysis with its alternative statement-of-fact theory makes no difference to the outcome of this case, because the majority erroneously holds that the safe-berth clause contains an absolute duty that was breached. See ante , at ----; supra , at ---- - ----. But its unreasoned dicta will undoubtedly cause problems for lower courts and parties in the future.
II
The lack of unambiguous language creating a warranty of safety in the safe-berth clause does not end our inquiry. " 'In this endeavor, as with any other contract, the parties' intentions control.' "
M&G Polymers USA, LLC v. Tackett
,
Under both "general maritime law" and ordinary principles of contract interpretation, evidence of an established "custom and usage" can be used as an aid to "determin[e] the parties' intent" and the meaning of the language included in the contract.
Stolt-Nielsen
,
*1099
Sun Oil Co. v. Wortman
,
* * *
I appreciate the majority's desire to interpret the safe-berth clause in a manner that provides clarity to the maritime industry. The plain meaning of the contract's text, however, does not support the majority's interpretation. Fortunately, the majority's opinion applies only to this specific contract, and its assertions regarding a material statement of fact are but dicta. Because I would reverse the judgment of the Court of Appeals and remand for further proceedings, I respectfully dissent.
An allision is "[t]he contact of a vessel with a stationary object such as an anchored vessel or a pier." Black's Law Dictionary 94 (11th ed. 2019).
The parties agree that the safe-berth clause also encompasses what is often referred to as a "safe-port clause." The safe-port clause here provides that "[t]he vessel ... shall, with all convenient dispatch, proceed as ordered to Loading Port(s) named ..., or so near thereunto as she may safely get (always afloat), ... and being so loaded shall forthwith proceed, ... direct to the Discharging Port[s], or so near thereunto as she may safely get (always afloat), and deliver said cargo." Addendum to Brief for Petitioners 4a. The parties do not dispute that the two clauses should be read in conjunction.
The central pillar of the dissent is that the safe-berth clause merely bestows upon the charterer "the
right
to 'designat[e]' the place of discharge," and thus apparently creates no duty to select a safe berth (much less a warranty of safety).
Post
, at ---- (opinion of THOMAS, J.) (quoting Addendum to Brief for Petitioners 8a; emphasis added); see also
post
, at ---- ("the charterer has a right of selection"). That sidesteps the safe-berth clause's plain terms, which prescribe that the charterer "
shall
... designat[e] and procur[e]" a "safe place or wharf." Addendum to Brief for Petitioners 8a (emphasis added). As we have said before, "the word 'shall' usually connotes a requirement."
Kingdomware Technologies, Inc.
v.
United States
, 579 U.S. ----, ----,
Because the materiality of the charterer's assurance of safety is plain on the face of the charter party, the specific materiality issue here raises no question of fact for a jury to resolve. That is not to say that the materiality of a statement in a charter party is always a question of law. Nor does the materiality analysis here bear on wholly different materiality inquiries. For not all questions of materiality are alike: Sometimes materiality is a question of law. See,
e.g.
, 30 Williston § 75:30, at 108 (whether an alteration of a contract is material). Other times, it involves factual determinations uniquely suited for a jury. See,
e.g.
,
TSC Industries, Inc. v. Northway, Inc.
,
It also bears mention that many other industry form charter parties-not selected by CARCO and Star Tankers-explicitly limit the liability that may flow from a charterer's selection of a berth. See, e.g. , 2E J. Force & L. Lambert, Benedict on Admiralty, ch. XXVII, § 27-567 (rev. 7th ed. 2019) (INTERTANKVOY form specifies that "[c]harterers shall exercise due diligence to ascertain that any places to which they order the vessel are safe for the vessel and that she will lie there always afloat").
After all, language that limits liability is necessary to overcome the default rule of strict liability for contractual breach. Supra , at ---- - ----. That stands in contrast to the established principle that charter parties can, at least in the circumstances here, create warranties without invoking express warranty language. Supra, at ---- - ----. The dissent overlooks this distinction when it claims that the absence of express warranty language in the safe-berth clause and the presence of it elsewhere in the charter party imply that no warranty may be found here. Post , at ----.
At oral argument, CARCO urged that the abandoned anchor was not only "a peril of the sea" but also "an abnormal occurrence." Tr. of Oral Arg. 28-29. CARCO's "abnormal occurrence" argument appears to rest on a recent decision by the Supreme Court of the United Kingdom interpreting a safe-berth clause not to impose liability if an "abnormal occurrence" rendered the selected berth unsafe. See Gard Marine & Energy Ltd. v. China Nat. Chartering Co. , [2017] UKSC 35 ( The Ocean Victory ). In its opening brief to this Court, however, CARCO did not cite The Ocean Victory or argue that the abandoned anchor here constituted an "abnormal occurrence."
The dissent's claim that Gilmore and Black looked to " 'the very words of the usual clauses,' " post , at ----, n. 1 (quoting Gilmore & Black § 4-4, at 204), relies on a discussion not of the charterer's obligation under the safe-berth clause but of the vessel master's lack of such obligation, Gilmore & Black § 4-4, at 204-205. At most, Gilmore and Black "suggested" that interpreting safe-berth clauses to relieve vessel masters of any obligation to enter an unsafe berth "might easily be read to contradict" any "affirmative liability" on the part of the charterer "in case of mishap." See id. , § 4-4, at 205. But that supposition is at odds with the language of the safe-berth clause here, which (as even CARCO acknowledges) plainly contemplates at least some liability for the charterer's designation of an unsafe berth. Supra , at ---- - ----, and n. 3, 8. And as explained, a vessel master's ability to refuse entry into an unsafe berth does not logically or textually diminish a charterer's liability when the vessel master in fact enters an unsafe berth selected by the charterer. Supra , at ----.
The parties also dispute whether the prevailing industry usage of safe-berth clauses supports reading the safe-berth clause here as a warranty or as a promise of due diligence. Because the express language of the safe-berth clause is susceptible to only one meaning, we need not address these arguments.
The majority states that the views of Gilmore and Black "stemmed from their belief that vessel masters or vessel owners are generally better positioned than charterers to bear the liability of an unsafe berth." Ante , at ----. While the treatise does contain policy-based arguments, it also looks to "the very words of the usual clauses" to conclude that the master's clear textual right to refuse to enter an unsafe port "might easily be read to contradict" an interpretation of a safe-berth clause that "creat[es] an affirmative liability of charterer to ship, in case of mishap." Gilmore & Black, Law of Admiralty § 4-4, at 204-205. Gilmore and Black's review of safe-berth clauses contains just as much, if not more, analysis of the text than the conclusory assertions of the majority. See ante , at ----.
Attempting to avoid the inconsistent application of its own principle, the majority claims there is a distinction between language limiting liability and language creating liability. Ante , at ----, n. 6. In the majority's view, express language is "necessary" to limit liability, but the parties can create warranty liability in numerous ways. Ibid . Even assuming that is correct, it does not negate the proof of the parties' intent here. The majority can point to no example of the parties "creat[ing] warranties without invoking express warranty language" in this contract. Ibid . By contrast, the contract contains no fewer than nine clauses using express language to create a warranty. The commonsense conclusion is that, when the parties intended to create a warranty, they used express language to do so.
I am skeptical that the phrase "place or wharf " can be read to include the entire berth. But CARCO failed to develop any argument related to the scope of this phrase, so I do not address the issue.
To support its assertion that no conflict exists, the majority rewrites the text of the safe-berth clause. The majority asserts that "[t]he vessel master's duty is only to 'load and discharge'
at the chosen safe berth
."
Ante
, at ---- (emphasis added). But that is not what the clause says. The safe-berth clause states: "The vessel shall load and
discharge at any safe place or wharf
." Addendum to Brief for Petitioners 8a (emphasis added). And, by requiring the charterer to pay for lighterage expenses resulting from the designation of an unsafe port, the clause specifically contemplates the vessel master declining to discharge at a place or wharf that is not safe.
Ibid.
; see also
Mencke v. Cargo of Java Sugar
,
Reference
- Full Case Name
- CITGO ASPHALT REFINING COMPANY, Et Al., Petitioners v. FRESCATI SHIPPING COMPANY, LTD., Et Al.
- Cited By
- 52 cases
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- Published