Key takeaways
Size of salved fund influences award outcome
Larger funds often lead to more generous compensation
Proportionality remains central to fair assessment
Awards must reflect effort, not just asset value
Case law continues to shape salvage principles
Judgments help refine how risk and reward are balanced
In the previous article, I looked at dangers as per Article 13(d) of the Salvage Convention.
Dangers/place of safety (Article 13.1(d))
Under Article 13.1(d), the nature and degree of the danger faced by the casualty is one of the most important criteria for fixing the salvage award.
A casualty can be in the grip of immediate danger or can simply be immobilised without engine power but otherwise not in any physical danger.
This lower end of the danger scale was highlighted in a well-known case called The “TROILUS” (1950).
The “TROILUS” was bound for Liverpool from Australia with a cargo of foodstuffs, which were not in immediate danger of perishing. She lost her propeller in the Indian Ocean, but was otherwise unimpaired. A merchant vessel towed her about 1,050 miles to a safe anchorage at Aden, which was an admitted salvage service. However, although the vessel was safely at anchor there were no repair facilities at Aden nor any ability to discharge and store the cargo. She was, therefore, towed to the UK by a second vessel where the cargo could be discharged and the vessel repaired. The House of Lords found that the towage by the second vessel was a salvage service.
In order for a salvage claim to succeed as a matter of common law, it is necessary for the salvors to prove that the property was in danger. Where LOF is signed, the signing of the Form will put the matter beyond doubt as salvage will have been admitted.
The issue in The “TROILUS” was whether or not the vessel had actually come to a place of safety after the first salvage operation and, therefore, whether the vessel was in any danger.
The House of Lords stated that a ship might lay at an intermediate port safe enough for all practical purposes, but could still be in danger if a prudent Master would be reasonably apprehensive of physical damage, having regard to the weather to be anticipated in the locality whilst his ship lay in the anchorage that she had reached, or if she continued to be so damaged that it would be unsafe for her to put to or remain at sea until she is repaired.
The House of Lords also found that relevant considerations were:-
The lesser ability of a disabled vessel to deal with emergencies such as fire or being set adrift.
The danger of deterioration of the ship and cargo (especially if perishable) if not removed.
The facility for repairs at the place in question.
The possibility of safely discharging and storing the cargo and sending it on to its destination.
The possibility of expenses and the effect of delay upon both ship and cargo.
The possibility of repair at a convenient port.
The time involved and the safety of the operation to the ship and cargo.
Lord Porter said:-
"The solution of the question whether a ship and cargo have reached a place of safety… must depend upon the facts of each case, one of which is the facility for repairs at the place in question, and another the possibility of safely discharging and storing the cargo and sending it on to its destination and the danger of its deterioration.”
In terms of danger from mere immobilisation, in a similar case, Wilmer J in The “GLAUCUS” (1948) stated:-
"Quite apart from the physical danger, there is this to be added, that until somebody docked her to a place where the necessary repairs could be executed she was completely immobilised. It is no use saying that this valuable property, worth something approaching a million pounds, is safe, if it is safe in circumstances where nobody can use it. For practical purposes it might just as well be at the bottom of the sea.”
Consequently, it is well-established law that a vessel merely immobilised without a propeller or, for example, without an operable main engine, even though she may be deemed to be safely at anchor, will still be in danger for the purposes of salvage. She will not be regarded as being in a place of safety, particularly in circumstances where there are insufficient facilities available to deal with the cargo and/or repair the vessel.
In the next article, which will be published on Tuesday 22 April 2025, I will look at place of safety as per Clause H of the LOF.
