By Keith Goldberg
Law360 (March 29, 2018, 11:19 AM EDT) -- The Third Circuit handed down a precedential opinion Thursday that saddled three Citgo units with the lion's share of liability for a $100 million-plus oil spill judgment and said the refiner must fully repay the federal government for its role in the cleanup, reversing a lower court's finding that Citgo only had to pick up half the government's bill.
Citgo Asphalt Refining Co., Citgo Petroleum Corp. and Citgo East Coast Oil Corp. sought to overturn a Pennsylvania federal judge’s apportionment of the blame over a 2004 incident in which Frescati Shipping Co.’s Athos I tanker — which Citgo chartered — hit a submerged anchor and spilled 263,000 gallons of crude oil into the Delaware River.
After Frescati paid out $143 million for the cleanup, a federal judge ordered Citgo to pay $66 million to Frescati, including interest, and $48 million to the federal government to reimburse it for roughly half of the payout Frescati received from the Oil Liability Trust Fund.
The case is Re: Petition of Frescati Shipping Co. Ltd., case number 16-3470, in the U.S. Court of Appeals for the Third Circuit
Law360 (March 29, 2018, 11:19 AM EDT) -- The Third Circuit handed down a precedential opinion Thursday that saddled three Citgo units with the lion's share of liability for a $100 million-plus oil spill judgment and said the refiner must fully repay the federal government for its role in the cleanup, reversing a lower court's finding that Citgo only had to pick up half the government's bill.
Citgo Asphalt Refining Co., Citgo Petroleum Corp. and Citgo East Coast Oil Corp. sought to overturn a Pennsylvania federal judge’s apportionment of the blame over a 2004 incident in which Frescati Shipping Co.’s Athos I tanker — which Citgo chartered — hit a submerged anchor and spilled 263,000 gallons of crude oil into the Delaware River.
After Frescati paid out $143 million for the cleanup, a federal judge ordered Citgo to pay $66 million to Frescati, including interest, and $48 million to the federal government to reimburse it for roughly half of the payout Frescati received from the Oil Liability Trust Fund.
The case is Re: Petition of Frescati Shipping Co. Ltd., case number 16-3470, in the U.S. Court of Appeals for the Third Circuit
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