Marine Salvage
By Allen E. Graham

 

Originating in ancient sea codes, the law of marine salvage was developed for the purpose of encouraging efforts to save property from destruction at sea and to discourage embezzlement by salvors. A salvor of imperiled property on navigable waters gains a right to compensation from the owner of the property saved and a maritime lien against the property to secure payment of such compensation. The salvage award is to be generously computed to encourage seaman to render prompt service in future emergencies. While compensation for salvage of property at sea has been historically recognized, compensation for saving life at sea has not. This is because saving life at sea is regarded as fulfilling a moral obligation for which compensation should not be necessary. The distinction, rewarding property salvage and not rewarding life salvage, has been viewed disfavorably by legislators because it seemed to encourage the salvage of property first and persons second. In 1912, Congress enacted a statute which provides life salvors a right to a fair share of compensation for any property saved on the same occasion. Life salvage unaccompanied by property salvage still goes unrewarded under maritime law.
The Federal District Court has subject matter jurisdiction over claims of marine salvage. The elements of a valid salvage claim under the general maritime law are:

1. There must be a marine peril placing the property at risk, destruction or deterioration. To constitute a marine peril there must be reasonable apprehension of damage or destruction of marine property. If the vessel herself has the situation in control, there is an absence of peril and no valid salvage claim. A marine peril is a term of art. Strandings and sinkings are the two most common marine perils.

2. The salvage service must be voluntarily rendered and not required by any existing duty or special contract. The voluntary nature of the salvage act calls for determination of whether the salvor had a legal duty to assist. A contract or obligation between the salvor and the salved will preclude voluntariness. The motive of the salvor is irrelevant. A professional salvor who acts for economic gain is a volunteer just as much as the "good Samaritan" salvor. The salvor must not have been under any preexisting duty to perform the act in question due to any relationship between the salvor and the salved property or due to the nature of the salvor's employment. Crew members of a salved ship are expected to take whatever steps necessary in a perilous situation and are thus denied any salvage award unless the ship had been abandoned by the master or owner. Passengers are expected to give only incidental aid and may be entitled to a salvage award for any extraordinary effort. The master and crew of a sister ship, unlike the salved ship, are not barred from recovering in salvage. Firemen, pilots and other public employees and service personnel may qualify for a salvage award only where their service is outside of the line of their normal, official duties. Even Coast Guard men may qualify for salvage in cases of extraordinary effort but there are no grounds for a salvage award for performance of the usual duties of going to the aid of distressed vessels.

3. The salvage efforts must be successful in whole or in part.
If each of these elements exist the salvor holds a valid claim to compensation for marine salvage under the general maritime law and the amount is to be determined by the court. The court has discretion in fixing a just and proper award after considering the benefits conferred on the property owner and the risk of the salvage operation, provided, however, that the award may not exceed the value of the property saved. The criteria and factors considered are as follows:

1. The time and labor expended by the salvor;
2. The promptitude, skill and energy displayed in the rendering of such service and saving the property;
3. The value of the property risked or employed by the salvor and the degree of danger to which he and his property was exposed;
4. The value of the property saved;
5. The degree of danger from which lives and property are rescued; and,
6. The degree of pollution prevented or protection provided to the environment.

The burden of proof of the above values is upon the person claiming the award. Expert opinion is relied upon but not conclusive. There is no rule of thumb generally applicable to the amount of salvage award. Older case law suggests a rule of thumb of one half of the value of the salved property to the salvors - the "moiety" rule. This rule is no longer followed, particularly where vessels of high value are saved. However, since the policy and purpose of salvage law is to encourage the efforts of seamen to save property, the salvage award should be set at a profitable level.

There is no general rule for the apportionment of a salvage award between the salvor vessel and its crew and individual awards for crew members, which will vary according to their responsibility, danger, difficulty and meritoriousness of service. As an example, however, two-thirds of the salvage award went to the vessel and one-third to the officers and crew in the case of Raunch v. Gulf Refining Co., 129 F. Supp. 843 (E. Dist. La. 1955).

When a person undertakes a salvage effort, he impliedly represents that he is capable of performing those efforts with reasonable skill and care. Therefore, a salvor may be liable for ordinary negligence in the carrying out of a salvage operation and any damages assessed for such negligence will reduce the amount of his salvage award. If the salvor is guilty of gross negligence or of looting or spoilage of the salved property, his award is forfeited. If salvage is attempted and the efforts are unsuccessful, the salvor is not liable for the loss sustained either by the owners or by third parties in the absence of gross negligence or willful misconduct.

Good luck and safe boating!