Department for Maritime and Transport Law| 21 May 2018 Dr. Iva Savić salvage Department for Maritime and Transport Law| 21 May 2018 Dr. Iva Savić

What does a salvage operation look like. https://www. youtube

Basics (I) Salvage at sea – every act undertaken to assist people, vessels or any other property that is in danger at sea or under sea *generally excluded: offshore platforms (including the drilling equipment) and other fixed structures; public vessels Additional category: environmental salvage > establishment of a special parallel category of salvage award

bASICS (II) Key elements: (0. object of salvage) The requirement of danger Voluntary undertaking No-Cure, No-Pay = no reward if no useful result Exception: special compensation

Salvage of persons

Salvage of persons General Duty – even if contrary to the wishes of salvees Exceptions: if serious danger to the salvage vessel, if low or no chances of success, if other salvage vessel already engaged, if help no longer necessary No right to salvage award Exception – if simultaneous salvage of persons and (some) maritime property Art. 16 of 1989 Salvage Convention

Salvage of property

Salvage of property What „maritime property” can be salved? Not a general duty (!) exception: in case of a ship collision Contractual salvage Informal, but usual through the use of standard contract forms (most utilized: Lloyd’s Open Form, LOF) Contractual norms for most part take precedence over statutory provisions Payment: ship operator, joint liability with regard to the cargo Non-contractual salvage Payment: individual responsibility of salved interests

Mandatory statutory provisions Duty of due care: When providing salvage services When preventing or mitigating damage to the marine environment If circumstances reasonably require: seek and accept help from other salvors, Master of Vessel’s duty to cooperate, accept the delivery of salved property Court’s discretion to modify or nullify a contract (Art. 7): If entered under duress and terms are inequitable If due to deceit or intentional concealment of facts If agreed award too high or too low for the services rendered

Salvage award If useful result – dispositive norm Duty of care – usually „best endeavours” – all efforts and all means Duty of result – daily rate or lump sum Total value of award – can be determined by contract, but cannot exceed the value of salved property If not determined by contract – determined by court or (often) arbitration, equitable reward Court or arbitration can diminish or deny the right to claim a salvage award (especially if there is intention or negligence on the side of salvor; including the „affirmative damages”) Privileged claim, right or retention, part of GA Salved Fund – value of salved property – value or property at time and in place where the salvage operation has been completed

Special compensation 1989 Salvage Convention aim: protection of marine environment No-cure, no-pay rule not relevant Cumulative preconditions Salved vessel was a threat to marine environment No salvage award, or salvage award not at least equal to the costs incurred If salvor: was not successful > actual costs was successful (prevention or mitigation of damage to marine environment) > 30% to 100% increase Not part of GA – covered by P&I Clubs

SCOPIC Clause Special Compensation of Protecting and Indemnity Clause Nagasaki Spirit Parties’ choice Opt-out from special compensation system Tariff, P&I guarantee, not necessary to prove a threat to marine environment, SCOPIC tariff payable only if higher than the salvage award If not, 25% penalty, based on the difference