Pure Salvage
In pure salvage (also called "merit salvage"), there is no contract between the owner of the goods and the salvor. The relationship is one which is implied by law. The salvor of property under pure salvage must bring his claim for salvage in a court which has jurisdiction, and this will award salvage based upon the "merit" of the service and the value of the salvaged property.
Pure salvage claims are divided into "high-order" and "low-order" salvage. In high-order salvage, the salvor exposes himself and his crew to the risk of injury and loss or damage to his equipment in order to salvage the property that is in peril. Examples of high-order salvage are boarding a sinking ship in heavy weather, boarding a ship which is on fire, raising a ship, plane, or other sunken property, or towing a ship which is in the surf away from the shore. Low-order salvage occurs where the salvor is exposed to little or no personal risk. Examples of low-order salvage include towing another vessel in calm seas, supplying a vessel with fuel, or pulling a vessel off a sand bar. Salvors performing high order salvage receive substantially greater salvage award than those performing low order salvage.
In order for a claim to be awarded three requirements must be met: The property must be in peril, the services must be rendered voluntarily (no duty to act), and finally the salvage must be successful in whole or in part.
There are several factors that would be considered by a court in establishing the amount of the salvor’s award. Some of these include the difficulty of the operation, the risk involved to the salvor, the value of the property saved, the degree of danger to which the property was exposed, and the potential environmental impacts. It would be a rare case in which the salvage award would be greater than 50 percent of the value of the property salvaged. More commonly, salvage awards amount to 10 percent to 25 percent of the value of the property.
Private boat owners, to protect themselves from salvage laws in the event of a rescue, would be wise to clarify with their rescuer if the operation is to be considered salvage, or simply assistance towing. If this is not done, the boat owner may be shocked to discover that the rescuer may be eligible for a substantial salvage award, and a lien may be placed on the vessel if it is not paid.
Read more about this topic: Salvor, Types of Salvage
Famous quotes containing the word pure:
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—Samuel Taylor Coleridge (1772–1834)