Shipping Lawyer Salvage and General Average 3

Question 1

How does gross negligence by the shipowner typically affect a general average claim against cargo interests under US and English maritime law?

Accepted Answer

It may bar the shipowner from recovering general average contributions from cargo unless a Jason Clause contractually preserves that right

Answer

Under general maritime law and US case law, a carrier whose actionable fault or negligence caused the general average situation may be barred from claiming contributions from cargo; the New Jason Clause is inserted in contracts to contractually override this restriction.

Question 2

Under Rule A of the York-Antwerp Rules, which condition must be satisfied for a loss or expenditure to be admissible as general average?

Accepted Answer

The sacrifice or expenditure must have been intentionally and reasonably made for the purpose of preserving the common maritime adventure from peril

Answer

Rule A is the foundational definition: a general average act exists when any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety of the ship and cargo in a common maritime adventure.

Question 3

When may expenses incurred at a port of refuge be allowed in general average under the York-Antwerp Rules?

Accepted Answer

When the vessel entered the port of refuge due to a situation that qualifies as a general average peril threatening the common adventure

Answer

Rules X and XI of the York-Antwerp Rules allow port of refuge expenses (including port charges and cargo handling costs) in general average when the port entry was necessitated by a peril giving rise to general average, as the entry itself constitutes an act for the common safety.

Question 4

What rights does a Hull and Machinery (H&M) underwriter typically exercise in a major salvage situation?

Accepted Answer

H&M underwriters generally have the right to take over conduct of the salvage operation and must approve or take over any salvage contract the owner proposes

Answer

Under the Institute Time Clauses (Hull) and standard H&M policy terms, underwriters are given the right to take over conduct of and settle any claim arising from a casualty, which includes approving salvage contracts, since the award will ultimately be borne by the H&M policy.

Question 5

What does 'subrogation' mean in the context of a cargo insurer paying a general average or salvage claim?

Accepted Answer

The cargo insurer's right to step into the shoes of the cargo owner and pursue recovery against responsible third parties after paying the claim

Answer

Subrogation allows a cargo insurer who pays a loss to take over the insured's rights and sue any responsible party (e.g., the carrier for unseaworthiness, or a negligent third party) to recover the amount paid, preventing the insured from receiving a double recovery.

Shipping Lawyer Practice Test

Shipping Lawyer Practice Test

Shipping Lawyer Salvage and General Average 3