Maritime Law Salvage and Towage Law 1 — Questions and Answers
Question 1: Under the International Salvage Convention 1989 (implemented in the U.S. via 46 U.S.C. §§ 80101–80107), a traditional salvage award requires:
- A voluntary service that results in a successful outcome (Correct answer)
- A pre-existing contract between the salvor and vessel owner
- The salvor to be a licensed commercial salvage company
- Government authorization before commencing salvage operations
Correct answer: A voluntary service that results in a successful outcome
Traditional salvage law requires that the service be voluntary (not legally required), performed in navigable waters, and result in a successful outcome saving the property.
Question 2: The 'no cure, no pay' principle in salvage means:
- The salvor is only paid if the salvage operation is successful (Correct answer)
- The salvor cannot charge if the vessel owner refuses assistance
- Medical salvage of crew is excluded from compensation
- The vessel owner need not pay if the vessel was already a constructive total loss
Correct answer: The salvor is only paid if the salvage operation is successful
No cure, no pay means the salvor's compensation is contingent on success — if the vessel or cargo is not saved, the salvor receives no remuneration regardless of effort expended.
Question 3: The Special Compensation P&I Club (SCOPIC) clause modifies 'no cure, no pay' by providing a salvor with:
- A minimum safety net payment even when the salvage operation fails to save property (Correct answer)
- Guaranteed profit sharing on successful salvage awards
- Immunity from pollution liability during salvage operations
- Priority over other maritime lienholders for payment
Correct answer: A minimum safety net payment even when the salvage operation fails to save property
SCOPIC provides salvors with a minimum rate-based compensation to encourage them to engage in environmentally sensitive salvages where the property value may be low but pollution risk is high.
Question 4: Article 14 of the 1989 Salvage Convention introduced 'special compensation' to incentivize salvors to:
- Prevent or minimize environmental damage even when property value is minimal (Correct answer)
- Rescue crew members in distress situations
- Undertake salvage in international waters beyond 200 miles
- Save vessels carrying hazardous cargo subject to HAZMAT regulations
Correct answer: Prevent or minimize environmental damage even when property value is minimal
Article 14 special compensation covers the salvor's expenses and adds an uplift for preventing environmental damage, even if the salved property value would not support a traditional award.
Question 5: The factors a court considers when assessing a salvage award include all of the following EXCEPT:
- The nationality of the salvage vessel (Correct answer)
- The degree of danger to the vessel and cargo
- The skill and efforts of the salvors
- The value of the property salved
Correct answer: The nationality of the salvage vessel
Salvage award factors under the Salvage Convention Article 13 include danger, skill, success, risk to salvors, environmental protection, and salved values — but not the nationality of the salving vessel.
Question 6: Under U.S. law, which category of workers is generally NOT entitled to claim a salvage award?
- Crew members of the vessel in distress (Correct answer)
- Crew of a passing vessel that voluntarily assists
- Professional salvors under a Lloyd's Open Form
- Coast Guard personnel acting in their official duty
Correct answer: Crew members of the vessel in distress
Crew members of the distressed vessel generally cannot claim salvage for duties that fall within their employment obligations to save the ship.
Maritime Law Salvage and Towage Law 1
Under the International Salvage Convention 1989 (implemented in the U.S. via 46 U.S.C. §§ 80101–80107), a traditional salvage award requires: