In re: Petition of Frescati Shipping — civil / admiralty — reversal in part — Smith

An oil tanker struck an abandoned anchor resting on the bottom of the Delaware River and spilled over a quarter-million gallons of crude oil, a spill that cost $143 million to clean up. Predictably, years of complicated litigation (including a 41-day trial and a 31-day post-remand hearing)  ensued over who must pay the clean-up bill: the shipper, the oil company (Citgo, represented here by Carter Phillips), or the government.

Today, the Third Circuit issued a 61-page opinion that, broadly speaking, came out in favor of the shipper and the government and against Citgo. The opinion decided numerous issues, notably that Citgo was not equitably entitled to a 50% reduction of its clean-up cost to the government and that Citgo waived a defense by first raising it 10 years into the case. The opinion is a gem, engaging and clear.

Joining Smith were Hardiman and Brann MDPA by designation. Arguing counsel were Timothy Bergère and John Levy of Montgomery McCracken for the shipper, Anne Murphy of the DOJ appellate section for the government, and Carter Phillips of Sidley Austin for the oil company.