Salvage Law and How It Can Affect You

The RYA’s Loretta Spridgeon explains the principles of salvage law and the implications for boaters …

Salvage is a voluntary service, which, when a boat is in danger at sea, saves the boat and contributes to the safety of both those within it and its cargo. But under the laws governing salvage, being rescued can be costly if you don’t know what you’re bargaining for.

Salvage services include towing, pilotage, and navigating or standing by a boat. Taking off any equipment or taking a passenger ashore could also be salvage. Floating a stranded boat (or raising one that is sunken) or saving a derelict boat or wreck are readily recognised as salvage.

Salvage is very often carried out under a salvage contract, but this is not a prerequisite. So what are salvage laws, and how would they affect you in an emergency situation?

Would you feel completely confident what to do if you ran out of fuel coming into harbour or if you found yourself struggling at sea in a storm? What about if you ran aground on a falling tide or suffered some other form of nautical mishap? Seeking immediate assistance would obviously be the first answer. But where would that help come from, and how would you ensure you minimised the cost of any rescue you may experience?

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Under the International Convention for the Safety of Life at Sea (SOLAS), and other such regulations, there is a statutory duty to assist any boat in distress and to save life. When a boat gets into trouble at sea it will be a stressful situation for all concerned and the priority will always be to look after the people on board. Once you and your crew are safe, though, the last thing you want to discover at a later date is that a salvage claim is being made against you or your boat. You will be in a better position to avoid such a sting in the tail if you have an understanding of the principles of salvage.

Salvage laws have evolved from the philosophy that the protection of maritime property at sea is considered of sufficient importance that it should be encouraged by the courts through the offer of rewards to those who go to the assistance of others. Under salvage law a person who recovers another person’s boat or cargo from danger at sea is entitled to a reward based on the value of the property saved. This is considered fair to the boat owner and salvor, based on the principle that a reasonable owner (or their insurer) who has avoided the total loss of their boat or other property through the intervention of a third party should be prepared to pay for the assistance offered, and also the person providing assistance shouldn’t be left out of pocket for doing so.

The underlying principles governing a salvage claim are:

• The service must be used by legally recognisable subjects of salvage, i.e. any boat or property in danger in navigable waters
• The service must be voluntary and not under a prearranged contract
• The subject of salvage must be in danger
• The service must either be successful or prevent or minimise damage to the environment
• The service must be performed in tidal waters (including harbours)

Given that the reward is normally payable out of the value of the property saved, for a salvor to be entitled to a reward, something of value must be saved! This is known as the ‘no cure, no pay’ principle.

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In assessing the amount of an award for a salvage service, a court will look at the following factors:

• The value of each boat involved in the operation
• The value of the property saved
• The danger to boats and salvors
• The expense, skill and time involved
• The status of the salvor (whether professional or amateur)
• The conduct and skill displayed by the salvage team

Boat skippers should therefore:

• Take careful note of all circumstances
• Show themselves as being in control of the situation
• Keep weather reports, charts or well-maintained logs available in case of dispute

So where does all this leave you in a required rescue situation? RYA Legal Manager, Mandy Peters, says: ‘Recreational boaters are invariably keen to help one another out, especially when someone has run into difficulty, and it’s unusual for those offering assistance to claim salvage. If you are worried about a claim for salvage being made, however, it is usually cheaper to agree a payment for assistance in advance rather than to leave it to be determined after the event.

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‘So if you are in a situation that doesn’t warrant calling the emergency services, you will probably be better off being upfront about fixing a price with the person offering assistance. If the danger is imminent, however, you should always call the emergency services. HM Coastguard and the RNLI do not normally make claims for salvage.’

There will be occasions when a boat is in imminent danger and salvage has to be accepted without an agreement on payment (i.e. the amount of any payment will be settled later), and therefore a skipper and salvor should be very clear on what is being agreed at the time. If a boat is in distress, the skipper will be unlikely in many cases to be able to arrange a written agreement. A verbal agreement, witnessed by other crewmembers or individuals aboard, on ‘salvage services’ upon the principle of ‘no cure, no pay’ should be offered.

Skippers should also consider trying to agree salvage subject to the terms of Lloyd’s Open Form (formally known as the Lloyd’s Standard Form of Salvage Agreement), which is a simple form of salvage agreement and gives jurisdiction to determine the reward to Lloyd’s of London arbitrators rather than the courts.

RYA members are entitled to free legal advice on any salvage or towage issues, while also having access to further in-depth salvage and towage information – including a download of the Lloyd’s Open Form – online.

For more information on how to become an RYA member and the benefits of membership visit www.rya.org.uk.

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