The Monfalcone dispute -- over its location in California waters or not --reminds me of a similar dispute over the Gulf of Sidra waters off Libya. Libya claimed a straight-line boundary, while the US and others claimed that the boundary followed the curved coastline. (See map below)

Basically, the US argued the opposite position to the the position that California took with the Monfalcone. A "heads I win / tails you lose" argument of sorts.