Salvage Laws

What happens when a vessel breaks loose in a storm and ends up far away from its mooring? Is it considered an abandoned vessel? Is a vessel abandoned simply because it is "adrift" without the owner or crew onboard? Can you claim ownership under the so-called "salvage laws?"

There must be a lot of erroneous information out there. I was asked those questions a dozen times once after the "Hit Me Twice" hurricane, also known as "Dennis!" Some of the confusion about salvage issues is due to numerous disputes, many of which are settled, and the balance of which end up in court.

The authority of U.S. Courts in these matters goes back to Article II of the Constitution, which specifically references "all cases of admiralty and maritime jurisdiction." For the most part, the Federal Courts have claimed jurisdiction over maritime disputes in an effort to maintain uniformity among the states.

As to the issue at hand, lets define some terms relevant to this discussion. A "Salvor" is "the person claiming and receiving a salvage award, for having saved a vessel or its cargo from impending peril, or for having recovered it after an actual loss." "Salved Property" is the property in question (the vessel, cargo, etc.). A "Derelict" is a vessel that is "abandoned and deserted by those in charge of it, without hope of recovering it, and no intention of returning to it."

In essence, the salvor renders "salvage services" to save a vessel or its cargo from impending peril, or to recover it after the fact. The U.S. Courts have held that admiralty law gives the salvor the right of "immediate possession" of the salved property. However, in almost all cases, that possession turns out to be temporary, just until the salved property reaches a safe port and can be returned to its owner. This ruling also applies to derelicts.

In order to have the salved property returned, the owner must either pay for the salvage services, reach an agreement to do so, or otherwise post some security to protect the salvor's interest. If no agreement between the salvor and the owner of the salved property can be reached, the salvor must bring a complaint in admiralty court to establish his/her right to a salvage award.

An owner of salved property might argue that there was no salvage contract and that the salvor's services were not even requested by the owner. U.S. Courts have held that the fact that the owner did not request the aid of the salvor is not a bar to the salvor's right to a salvage award. Based on the circumstances of the impending peril, the court may find that a "reasonable person" would have accepted salvage services. In such cases, the courts have decided in favor of the salvor and ordered payment of a salvage award. 

Back to the vessel adrift (complements of the most recent hurricane). First of all, it is unlikely that it was abandoned by its owner, or that the owner had no intention of recovering it. Further, even if it is found to be a derelict, there is no right of permanent possession provided under the law. So, the answer is NO . . . . you can't simply take it upon yourself to claim ownership of a vessel adrift!

Until next time, I wish you clear skies, fair winds, and calm seas!

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FH051505
Page updated 27 June 2005 .

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