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Supreme Court Raises Liability for Energy Companies in Oil Spill Litigation

The U.S. Supreme Court Monday imposed a stiffer level of liability for energy companies involved in tanker ship oil spills and other marine accidents near ports.

By a 7-2 vote in the case CITGO Asphalt Refining Co. (CARCO) V. Frescati Shipping Co., the high court ruled that boilerplate language in contract agreements between charterers – oil and petrochemical companies – and ship owners establishes a “warranty of safety” that makes charterers liable for the damage caused by certain oil spills.

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