From the Feedback - 13/12/00 - on salvage

If anyone is curious about the salvage laws relating to Team Philips, Richard Power obliges ..

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From Richard Power,
The main principle of salvage is that of "No cure - no pay" (Clause 1b of the Lloyd's Standard Form of Salvage Agreement 1990.) The salvor takes the full economic risk of the success (or failure) of the salvage operation, and if he fails to salve any property, or the property that is salved is worthless, then he cannot expect to receive any compensation.

Anyone has a right, therefore, to anticipate compensation under Maritime Law from a High Court of Justice (Probate, Divorce and Admiralty Division) or in a County Court with Admiralty jurisdiction. The Court has to decide whether the salvor has actually rendered a salvage service, and if so, how much should be paid as salvage remuneration. Such remuneration is then awarded against the owners of the vessel being salved, and is usually recoverable from their insurers.

The following rules apply:-

- The salvage service must be rendered voluntarily
- The service must be rendered to a recognised subject of salvage
- The subject of salvage must be in danger
- The service must be successful

In Team Philips case, basically the first person to demonstrate that they have complied with all the above stipulations, particularly the last, can present a valid case to the Court for remuneration. The Court will then, at its discretion, make an award which is usually not more than half the value of the yacht.

As you might be thinking, we may have some fun if the following situation arises: Team Philips' owners agree to contract with a tug owner, who then sends his tug out to Team Philips only to find that someone else has got there first!