Law of Salvage - Minimizing Danger To The Environment

Minimizing Danger To The Environment

While the general principle of salvage law has been no cure; no pay, special consideration had to be given as more vessels were propelled by internal combustion engines, with the related environmental hazards that were possible if one were to sink. The concept of the safety net in LOF1980 took steps to protect the environment from oil pollution. Following this concept of the safety net, the Salvage Convention of 1989 introduced the concept of special compensation to encourage salvors to preserve and minimize damage to the environment from fuel and oil spills. However, the concept was very different from the "special compensation" under the existing convention.

Under Article 14(1) the salvor is entitled to special compensation if he has carried out salvage operation on a vessel which by itself or its cargo threatens damage to the environment. It must come with the failure to earn a reward under Article 13 which is "at least equivalent to the special compensation assessable in accordance with the Article". This special compensation is obtainable from the owner of the vessel, and is equivalent to the salvor's expenses. The salvor does not necessarily have to achieve success in preventing and minimizing damage to the environment in obtaining special compensation. If success is achieved, special compensation will be payable in greater amount under Article 14 (2) as follows:

If the salvage operation actually prevents or minimizes damage to the environment, the salvor will be able to claim enhanced special compensation with the provision of Article 14(2). The amount of the salvage award may be increased up to a maximum of 30 percent of the expenses incurred by the salvor. The possibility exists that an arbitrator may increase the special compensation to 100 percent of the expenses incurred, if warranted by circumstances. However, negligence on the part of the salvor will deprive his right of the whole or part of any special compensation under Article 14 (5). In order to claim special compensation, it must be shown that the vessel itself or the cargo threatened damage to the environment. This goes further than the environmental safety net provisions in LOF 1980 which were limited to tankers laden with oil.

Articles 13 and 14 are both incorporated in the LOFs 1990 and 1995 by reference and LOF 2000 is made subject to the English Law.