International Marine Claims Conference Dublin October2005 Salvage Session – SCOPIC Chris Beesley Ince & Co, London

CASE STUDY 1 Large bulk carrier with major structural damage deep sea. SCOPIC invoked immediately. Long services. Salved values: US$26 million SCOPIC costs: US$20 million Article 13 assessment:± US$15 million Issues: Hull/P&I in disagreement over Article 13. Hull wishes to make formal settlement offer. P&I do not. SCOPIC costs agreed – who pays for arbitration. Owner caught in middle. No leverage over cargo.

CASE STUDY 2 Small loaded container ship with heavy damage. SCOPIC invoked immediately. Long services. Salved values:US$7 million SCOPIC costs:US$3 million Article 13 assessment:±US$3.5 million Delay in port entry due securities formalities, SCOPIC day cost US$50,000 Issues: Container terminal required onerous L/G to permit discharge ($200,000). Container/cargo owners will not provide. Owner impecunious but in any event:

CASE STUDY 2 No recourse if he provides (not GA). No claim on P&I (? sue and labour). Salvor won’t/not obliged to provide. P&I forced to pay to save SCOPIC exposure which did not exist before. Should LOF Arbitrator be told of the SCOPIC costs when determining Article 13 award?

CASE STUDY 3 Small bulker immobilised deep sea. Expected salved fund US$20 million. Salvors negligently lose tow in proximity to hostile coast. Ship grounds heavily – SCOPIC invoked. Ship CTL. Wreck removal notice. Authorities refuse release Salvors. Issues: Salvors ‘benefit’ from own negligence? P&I must provide SCOPIC security Subrogated H&M have claim for negligence P&I has claim for negligence Assessment of damages, set-off, limitation No Art 18 in SCOPIC

CASE STUDY 4 Chip carrier aground on rocks – probable CTL. SCOPIC invoked immediately. Bunker removal – wood chip cargo contaminated with bunkers. Impossible to remove all traces of bunkers from ship/cargo without complete removal. Wreck removal notice. Issues: Code of Practice ISU/P&I – no unreasonable termination Spirit of SCOPIC – ongoing pollution threat Complete wreck removal cheaper by renegotiation than under SCOPIC tariff When/should notice of termination be given? Politics

International Marine Claims Conference Dublin October 2005 Salvage Session – SCOPIC Chris Beesley Ince & Co, London