Chapter 14: Salvage Chapter 15: General Average

 A. Contract Formation & Terms  §14-1 Nature/Elements of Marine Salvage ◦ Historical reasoning ◦ Applicable Law/jurisdiction ◦ Lien created ◦ Types of Salvage ◦ Elements of salvage claim

 Only maritime property can be object of salvage (no def. of “maritime property”)  E.g. floating logs, crashed aircraft

 Anyone ! (kindof)  OK well not just anyone ;)  Extraordinary efforts

 Salvor represents that effort will be performed with reasonable skill/care.  Thus Salvor can be liable for negligence, reducing salvage award. If no success/award, then no liability.

 When?  Traditional Criteria  ‘89 Convention Criteria  Max Award  Value consideration  Who is liable  Charter party situation  SOL

 Salvor acts to save maritime property after entering agt to use best endeavors.  Freedom of K applies  Various provisions permitted, often found in “Lloyd’s Open Forum” contract form.

 Spoils contestants  Applicable rules  International Law  National Jurisdiction  Salvage or “Finds”  Government Interests  Cultural/Historical Heritage

 General rule  Modified rule  Duty to save life  3 Life Salvage situations  Negligence liability

 1989 Salvage Convention ◦ Environment! ◦ Coastal state rights ◦ Success  UNESCO Convention on Protection of Underwater Cultural Heritage

 §15-1 Basic Principles ◦ “Average” ◦ “Particular Average” ◦ “General Average” def’n. ◦ Historical ◦ nowadays

 Requirements for GA loss (3)  Ralli Case (1985)  York-Antwerp Rules  GA recovery limitation  Allowed recovery under YAR  Not allowed under YAR

 First calculation of GA  Ship recovery requirements  Irwaddy case (1898)  Jason case (1912)  COGSA and Jason  New Jason Clause  Unseaworthiness expenses  Deviation  Latent Defects  Losses caused by 3P

 Normal procedure  Shipowner duty re: cargo sacrifice  Liens  Underwriter process  Determination of contributions  YAR guidelines  GA statement  Cause of Action location