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    Salvage

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    Fait Hee
    1. The origins of salvage law date back to 800 BC, with references in ancient legal codes, but the field was further developed in the Salvage Convention of 1910, which adopted the English maritime law principle of "no cure, no pay" rather than the civil law principle of permitting remuneration regardless of outcome. 2. The Salvage Convention of 1989 later incorporated concepts of both "no cure, no pay" and "assistance" to avoid environmental damage. 3. Lloyd's Open Form agreements are now the most commonly used standard form of salvage contract worldwide.

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    Salvage

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    Fait Hee
    226 views39 pages
    1. The origins of salvage law date back to 800 BC, with references in ancient legal codes, but the field was further developed in the Salvage Convention of 1910, which adopted the English maritime law principle of "no cure, no pay" rather than the civil law principle of permitting remuneration regardless of outcome. 2. The Salvage Convention of 1989 later incorporated concepts of both "no cure, no pay" and "assistance" to avoid environmental damage. 3. Lloyd's Open Form agreements are now the most commonly used standard form of salvage contract worldwide.

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    1. The origins of salvage law date back to 800 BC, with references in ancient legal codes, but the field was further developed in the Salvage Convention of 1910, which adopted the English maritime law principle of "no cure, no pay" rather than the civil law principle of permitting remuneration regardless of outcome. 2. The Salvage Convention of 1989 later incorporated concepts of both "no cure, no pay" and "assistance" to avoid environmental damage. 3. Lloyd's Open Form agreements are now the most commonly used standard form of salvage contract worldwide.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    226 views39 pages

    Salvage

    Uploaded by

    Fait Hee
    1. The origins of salvage law date back to 800 BC, with references in ancient legal codes, but the field was further developed in the Salvage Convention of 1910, which adopted the English maritime law principle of "no cure, no pay" rather than the civil law principle of permitting remuneration regardless of outcome. 2. The Salvage Convention of 1989 later incorporated concepts of both "no cure, no pay" and "assistance" to avoid environmental damage. 3. Lloyd's Open Form agreements are now the most commonly used standard form of salvage contract worldwide.

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    By:

    LISSA BELLE M. VILLANUEVA

    Historical Background
    Origins of salvage
    The origins of salvage in maritime law are both ancient and
    obscure, and although there is no comprehensive history of
    salvage, there are some excellent summaries.
    evidence of salvage rewards is found in the Rhodian Law of
    approximately 800 B.C.,
    while there is reference to remuneration for salvors at art. 4
    of the Roles of Oleron
    and in the Consolato del Mare at art.CCXLV,
    as well as in the medieval sea codes.
    The Ordonance de la Marine, 1681 of Louis XIV also codified
    several rules on cargo salvage in the event of shipwreck

    Historical Background
    The Salvage Convention 1910 adopted the
    English maritime law principle of salvage,
    involving no cure/ no pay, rather than the
    civil law principle of assistance, permitting
    remuneration no matter what the outcome

    Even before the IMO came about

    Built in the US in 1959


    Cargo capacity : 60,000 tons

    Later, she was expanded to twice


    that capacity in Japan; 63,000
    tonnes for the ship and 120,000
    for the cargo

    Built in the US in 1959


    Cargo capacity : 60,000 tons

    Later, she was expanded to twice


    that capacity in Japan; 63,000
    tonnes for the ship and 120,000
    for the cargo

    Started spilling 30,000


    gal of oil

    British Air Force dropped


    30 bombs, 11 rockets

    1 salvor died

    Led to development of
    CLC, IOPC

    Amoco Cadiz
    March 16, 1978,
    from Persian Gulf to
    Rotterdam
    Ran aground off the
    coast of Brittany,
    France
    Spilled 68.7 million
    gallons of oil
    Damage to its
    steering gear during
    heavy weather

    Amoco Cadiz
    German Tug, Pacific
    11:28 am to 4pm
    Master had to wait
    for the decision of
    the ship owner

    Historical Background
    1. The Salvage Convention 1910 adopted the English
    maritime law principle of salvage, involving no cure/ no
    pay, rather than the civil law principle of assistance,
    permitting remuneration no matter what the outcome
    2. The Salvage Convention 1989 adopted the concepts of
    both no cure/no pay and assistance, this latter with
    respect to avoiding damage to the environment
    3. Lloyds Standard Form of Salvage Agreement (LOF 1995
    and LOF 2000) the most common form of salvage
    contract in use around the world, Lloyds Standard Form
    of Salvage Agreement (LOF)

    Historical Background
    1. The Salvage Convention 1910 adopted the English
    maritime law principle of salvage, involving no cure/ no
    pay, rather than the civil law principle of assistance,
    permitting remuneration no matter what the outcome
    Act No. 2616 The Salvage Law, enacted by the
    Philippines which took effect in February 4, 1916
    2. The Salvage Convention 1989 adopted the concepts of
    both no cure/no pay and assistance, this latter with
    respect to avoiding damage to the environment
    3. Lloyds Standard Form of Salvage Agreement (LOF 1995
    and LOF 2000, 2005) the most common form of salvage
    contract in use around the world, Lloyds Standard Form
    of Salvage Agreement (LOF)

    Historical Background
    1. Act No. 2616 The Salvage Law, enacted by the
    Philippines which took effect in February 4, 1916

    2. Republic Act No. 5173

    3. Republic Act No. 9993 The Philippine Coast Guard Law


    of 2009

    Legal Basis
    (Philippine Laws)
    RA No. 9993. The Philippine Coast Guard Law of 2009
    Section 3. Powers and Functions. The PCG shall
    have the following powers and functions:

    x x x
    (g) To remove, destroy or tow to port, sunken or
    floating hazards to navigation, including illegal fish
    traps and vessels, at or close to sea lanes which may
    cause hazard to the marine environment;

    Legal Basis
    (Philippine Laws)
    Section 3, RA No. 9993. Powers & Functions of the PCG

    (h) To issue permits for the salvage of vessels and to


    supervise all marine salvage operations, as well as
    prescribe and enforce rules and regulations
    governing the same;

    Legal Basis
    (Philippine Laws)
    RA No. 9993 The Philippine Coast Guard Law of 2009
    Section 3. Powers and Functions of the PCG
    (i) To render aid to persons and vessels in distress
    and conduct search and rescue in marine accidents
    within the maritime jurisdiction of the Philippines,
    including the high seas, in accordance with
    applicable
    international
    conventions.
    In
    the
    performance of this function, the PCG may enlist the
    services of other government agencies and the
    merchant marine fleet;

    To encourage mariners to provide prompt


    service in emergencies the award of a
    compensation which is computed much greater
    than the value of the actual labor involved is
    given.

    Definition:

    a service which one person renders to


    the owner of a ship or goods by his own
    labor, preserving the goods or ship which
    the owner or those entrusted with the
    care of them have either abandoned in
    distress at sea or are unable to protect
    and secure. It is founded on the equity
    of
    remunerating
    private
    services
    performed in saving, in whole or in part,
    a ship or its cargo from impending peril,
    or of recovering them after actual loss.
    Philippine Supreme Court

    Principles of Modern Salvage Law


    Five basic requirements
    a. Maritime Property
    b. Voluntary action
    c. Danger
    d. Success
    e. Location

    Principles of Modern Salvage Law


    Maritime Property
    a. Ship
    b. Cargo
    c. Freight
    Excludes : aids to navigation at sea (buoys,
    beacons)
    : pure life salvage

    Principles of Modern Salvage Law


    Voluntary Action
    a. No pre-existing contract to render
    assistance to the distressed/salvaged
    ship
    b. No public duty to render salvage service
    Excludes : crew, tug, pilots, govt agencies

    Principles of Modern Salvage Law


    Danger
    a. the marine property must be in danger
    of being lost;
    b. the danger must be real although not
    necessarily immediate
    c. subject to the assessment of the master
    The master always has the discretion to accept
    or reject salvage service.

    Principles of Modern Salvage Law


    Success
    a. no cure no pay;
    b. the reward is payable out of the value of
    the property salved
    c. all those who materially assisted in
    the rescue of the ship or cargo
    Courts tend to favor the payment of salvage claims.

    Principles of Modern Salvage Law


    Location
    a. the place where salvage service was
    rendered must have salvage law or must
    allow the payment of salvage claims;
    b. in the jurisdictions of signatories to the
    Salvage Convention

    The Salvage Reward


    1.Basic criteria of salvage reward
    2.Other criteria
    3.Criteria under US practice
    4.Special compensation
    5.The SCOPIC clause
    6.Quantum and apportionment

    The Salvage Reward


    Basic criteria of salvage reward
    a.

    Extent and skill of the acts of the salvors;

    b.

    the dangers encountered;

    c.

    Value of the property salved and the salving


    property at risk;

    d.

    Time used in the salvage operations;

    e.

    Expenses and losses incurred by the salvors;

    f.

    Risks of liability by salvors;

    g.

    Measure of success attained

    The Salvage Reward


    Other criteria
    a. Promptness of the services rendered;
    b. Availability and use of vessels or other
    equipment intended for salvage
    operations;
    c. Readiness and efficiency of the
    salvors equipment and its value

    The Salvage Reward


    The Blackwall (USA)
    Courts of admiralty usually consider the following
    circumstances as the main ingredients in determining
    the amount of the award to be decreed for a salvage
    service:
    1. The labor expended by the salvors in rendering the
    salvage service;
    2. The promptness, skill and energy displayed in
    rendering the service and saving the property
    3. The value of the property employed by the salvors in
    rendering the service and the dangers to which such
    property was exposed

    The Salvage Reward


    The Blackwall (USA)
    4. The risk incurred by the salvors in securing the
    property from the impending peril
    5. The value of the property saved
    6. The degree of danger from which the property was
    rescued

    The Salvage Reward


    Special compensation
    - Considered for the salvage of vessel or
    cargo which poses a danger to the
    environment;
    - Covers out-of-pocket expenses + a fair
    rate for equipment and personnel
    actually and reasonably used in the
    operation

    The Salvage Reward


    The SCOPIC clause
    Provided in the Lloyds Open Form
    Has nothing to do with the environment
    Provides for guaranteed remuneration
    for services rendered based on a
    schedule of rates for materials and men
    Computation : out-of-pocket expenses
    + standard 25% bonus

    The Salvage Reward


    The SCOPIC clause

    If no cure no pay < SCOPIC = SCOPIC

    If no cure no pay > SCOPIC :


    no cure no pay SCOPIC x 25% = discount
    SCOPIC discount = reward

    The Salvage Reward


    Quantum and apportionment
    Reward is based on the market value
    of the property after it is salved or its
    replacement cost if there is no available
    market for the property salved;
    From this amount is deducted taxes,
    costs of storage, valuation, sale and
    expenses of the salvor

    The Salvage Reward


    1. Salvage claims constitute a lien on the
    property salved
    2. Salvage claims enjoy priority in payment
    3. Under Philippine law, if no agreement:
    a. Ship owner 50%
    b. Master 25%
    c. Crew 25% to be divided in proportion
    to their salaries

    Salvage Reward in the Philippines


    Sale value of the property salved
    Less:
    Expenses
    of
    custody,
    conservation,
    advertisement & auction, taxes and/or duties

    Less:
    Expenses of the salvage operations

    *******
    Get 50% of the net remaining amount and
    divide in accordance with law

    State Controlled Salvage


    1.Salvage by Public authorities
    2.Need for Cooperation

    Legal Mandate
    Republic Act No. 9993 The Philippine Coast Guard Law of
    2009
    Section 3 Powers and Functions: xxx
    (g) To remove, destroy or tow to port, sunken or
    floating hazards to navigation, including illegal fish
    traps and vessels, at or close to sea lanes which
    may cause hazard to the marine environment;)
    (h) To issue permits for the salvage of vessels and to
    supervise all marine salvage operations, as well as
    prescribe and enforce rules and regulations
    governing the same;

    Nam Yang 8, Pagudpud, Ilocos Norte

    January 1, 2010 December 2010

    Time for Suit


    1.Two-year limitation
    2.Extensions on indemnity actions if
    allowed in national laws

    Thank you

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