Lloyd's Maritime and Commercial Law Quarterly
SALVAGE AND ENHANCED AWARDS
Geoffrey Brice, Q.C.
Introduction
A right to salvage remuneration arises when a salvor preserves or contributes to preserving at sea any vessel, cargo, freight or other recognized subject of salvage from danger. Under the ordinary law of salvage, the amount of salvage remuneration may not exceed the salved fund.
Article 8 of the Brussels Convention on Salvage 1910 provides that:
“The remuneration is fixed by the Court according to the circumstances of each case, on the basis of the following considerations:
- (a) firstly, the measure of success obtained, the efforts and deserts of the salvors, the danger run by the salved vessel, by her passengers, crew and cargo, by the salvors, and by the salving vessel; the time expended, the expenses incurred and losses suffered, and the risks of liability and other risks run by the salvors, and also the value of the property exposed to such risks, due regard being had to the special appropriation (if any) of the salvors’ vessel for salvage purposes;
- (b) secondly, the value of the property salved …”.
Article 8 has never been formally enacted as part of English law though it substantially reflects English law and practice. However, the considerations listed in Art. 8 are not exhaustive. Salvage remuneration has traditionally been assessed by reference to the danger to the salved ship and cargo; but in recent years it has become increasingly evident that it is in the public interest to take into account (so as to increase or enhance the reward when the salved fund permits) certain benefits conferred or dangers avoided not expressly mentioned in Art. 8. Frequently a salvor, by his efforts, prevents or minimizes damage to or the threat of damage to property other than the salved ship or her cargo (or other property carried on board her). How, under existing law and practice, is the conferring of such a benefit recognized: in particular, when the salved fund is either very low or non-existent? What interests are responsible for paying the salvor and upon what principles? The Legal Committee of the International Maritime Organization (IMO) resumes its deliberations on this topic in March 1985 with a view to seeing what changes in the Brussels Convention on Salvage 1910 ought to be made.
The concept of “danger”
Article 8 of the Brussels Convention refers simply to “the danger run by the salved vessel, by her passengers, crew and cargo”. The salved ship and cargo may be in danger of sustaining loss or physical damage in a number of ways, for example, due to engine breakdown at sea, fire, explosion, stranding, incursion of sea water, collision and so on. The danger need not be one of immediate or imminent loss or danger provided it is real and not fanciful: the degree of danger will be reflected in the assessment of the amount of salvage remuneration. However, in many instances, the salved ship or cargo may threaten to cause damage to other ships or to the coastline or to fixed installations. Indeed, a salvor may salve a badly damaged ship of limited, if any, value, so as to confer a minimal benefit on the shipowner in terms of preserving any value in the vessel
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