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The Law of Salvage oProfessor Erik Røsæg oScandinavian Institute of Maritime Law ofolk.uio.no/erikro.

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Presentation on theme: "The Law of Salvage oProfessor Erik Røsæg oScandinavian Institute of Maritime Law ofolk.uio.no/erikro."— Presentation transcript:

1 The Law of Salvage oProfessor Erik Røsæg oScandinavian Institute of Maritime Law ofolk.uio.no/erikro

2 2 What salvage is about Any act or activity to assist a vessel, or any other property in danger, in navigabel waters, or in any other waters watsoever

3 Intended purposes oCounter plundering oIncentive oShip oPersons oEnvironment 3

4 This has influenced the rules on oThe reward oNo reward without success oAgreement not necessary 4

5 An overview of salvage oInterest or property subject to salvage oConditions for reward oDanger oVoluntariness oUseful result oResult-based reward oNo cure - No pay oSalvage under contract 5

6 Quite unique to maritime law oAirplanes Act No. 101/1993 § 12-8 oFishery equipment Act No. 37/2008 § oNegotiorum gestio oWreck act, 1893 oLost property Act, 1955 oPollution Act,

7 The legal background o1910 Brussels Convention for the Unification of Certain Rules with Respect to Assistance and Salvage at Sea oAmoco Cadiz oInternational Convention On Salvage 1989 oLloyd’s Open Form (LOF)

8 Common salvage operations and services oStranding and grounding oSinking oRescue towage o--- oRefloating oPumping, raising and repair oHook up and tow in oSurveys oFire fighting oCargo/equipment recovery oWreck removal oStanding by oPrevention of third party damage 8

9 Interests subject to salvage,§ 441 oVessels oMobile drilling units, § 507 oCargo oOther property oNo Salvage alone of oPersons, § 445(2) oLiability oLoss of time 9

10 In danger, foundered or wrecked, § 441 oFoundered or wrecked oTypes of danger oTotal loss oExtensive damage oAssistance contrasted o Degree of danger oSevere peril of the sea oActual danger as opposed to perceived danger oLoran ND oLos 102 ND oNorsk Viking ND

11 Voluntariness, § 450 oCoastguard oCrew oPilot oTug oOther public authorities 11

12 Master’s veto, § 450(2) oFirst come, first serve oRationale for veto oProblem of delay oDuties of the involved, §

13 Useful result, § 445 oNo cure no pay-principle oReward cannot exceed the saved value oWhat is success? oOut of danger sufficient? 13

14 Assessment of the reward oAim to encouraging salvage efforts oCriteria, 446 oWithout regard to the order of the criteria oReduction, § 450 oPIOPIC 14

15 Damage to the environment treated outside the principle oSpecial compensation, § 449 oUnsuccessful efforts: Expenses oSuccessful efforts: Expenses + 30 to 100 percent 15

16 Special compensation oThe vessel must threaten to damage the environment oDamage means substantial physical damage to human health or to marine life or recourses oCauses only from certain pollutants 16

17 Problems oWhat constitute expenses? oCan profit be included? oHow to measure success? oHow to assess the uplift ( %)? oInsurers exposed to “unmonitored” risks 17

18 The solution to the problems oSCOPIC-clause into the salvage contract oSpecial compensation scheme not applicable 18

19 SCOPIC-clause oMain advantages compared to art. 14 of the salvage convention oNo threat of damage to the environment required oGeographical scope oA fixed uplift (25%) not linked to success oAgreed tariff rates for tugs personnel and equipment oFirm agreement on security oP&I clubs’ and property underwriters’ rights to be represented during the salvage operation 19

20 Salvage under contract oAgreement that there is a danger oFixed rate oPure salvage oNo cure no pay oA salvage contract can be modified and annulled, §

21 Towage contrasted oAgreed price oDaily hourly rate (BIMCO Towhire) oLump sum (BIMCO Towcon) oUsually no claim for salvage compensation 21

22 Special salvage operations § 442(2) oSalvage operations by sister vessels oSalvage operations by public authorities 22

23 Apportionment oApportionment between independent salvors, § 448 oApportionment between owner, master and crew, § 451 oApportionment between owner and time charterer, §§ 386 and 392 oRisk distribution in carriage of goods, §§ 275 and

24 General Average– oAllowed in YAR 1994 Rule VI, cf. § 447 oOutside YAR 2004 oSubsequent debate 24

25 MARINE Insurance oNMIP § 4-8 oCICG § 39 25

26 Maritime lien and limitation oMaritime lien, §§ 51 and 61 oLimitation, § 173 oIOPCF Claims Manual, 2007, #


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