Legal Flashcards
NOTE OF PROTEST. What is it and what are the uses?
It is a declaration made by the master before a Notary Public.
It is used to protest innocence in a circumstance that was out of his control.
In what circumstances would you Note Protest?
Encounter of bad weather which may have caused damage
Perishable cargo may have deteriorated
Breach of charter party by CP or agents
A consignee fails to take delivery of cargo, or to pay freight
Who should you inform when Noting Protest & what documents may be required as Evidence?
The Owner/Managers, Agent in the Port of Destination
Documentation: Passport/Ticket
Deck Log Book
Official Log Book
Witness Statements & and other supporting evidence
Why should a Master reserve the right for extending Protest beyond the original Port it was lodged?
This is prudent practice because the degree of loss or damage may not be evident at the time & could be discovered at a later date.
What is a Port of Refuge?
If a vessel on her intended voyage must deviate because she has suffered damage to the extent that she is in a State of Peril.
The decision to put into a PORT OF REFUGE is a justifiable decision to effect neccesary repairs that maintains insurance & contractual rights intact.
What Must a Master do after identifying a Suitable Port of Refuge?
Notify interested parties,
Owners, Agents, Charterers & Local Maritime Safety Authority of his intention to enter a Port of Refuge
Agent to organise;
- Salvage Association Surveyor to co-ordinate repairs & minimise the losses
- P & I Club Surveyor to conduct a complete survey of the cargo
- Local Classification Society Rep - Complete Vessel Survey
There are 3 Legal aspects of salvage. What common law conditions must be met to qualify for a salvage reward?
- Salvage service must be voluntary
- Must be rendered to a recognised subject of salvage i.e. IN PERIL
- Subject of salvage must be in danger
- Salvage must be successful
What is Considered Maritime Property?
Includes - Vessels, Equipment, Cargo, Bunkers, Wreck & Freight
Equipment i.e. A dive spread belonging to third party.
Contractual Aspects of Salvage.
What are the two main types of salvage agreement?
- On the basis of tariff, fixed lump sum or a daily rate
- On the basis that remuneration will be settled later, whether by agreement, court judgement or arbitration
It is always going to be cheaper to arrange salvage on the first principal if time allows, where the is no risk of IMMINENT DANGER . (Soft aground in a sheltered non tidal harbour for example)
What Salvage Agreement is usually used when the basis of remuneration will be settled later?
LOF - Lloyds Open Form
Name some of the Advantages of using LOF
- Agreements can be reached by RADIO. There is no need for the form to be signed right away. (Witness)
- The agreement is not likely to be disputed
- LOF has a No Cure - No Pay agreement
-English Law applies to claims
- The salvor has a Maritime Lien, in the property salvaged, even after it’s sale to another party. (Lien: A claim against Vessel or Cargo for services offered)
- Salvaged property can be quickly released on payment of security to the salvor.
- Disputes are referred to arbitration in London. Saving Legal Costs
- Excessive claims by salvors are avoided
What does the inclusion of a SCOPIC clause in LOF cover?
It guarantees Remuneration to Salvors when there is insufficient value in property. Cost covering basis…
Special Compensation Protection & Indemnity Clause - this is not invoked unless the Salvage Contractor notifies the owners of the vessel being salvaged.
It is assessed on the basis for Tarrif rates for personnel, tugs and other craft. Portable salvage equipment, out of pocket expenses & any bonus due.
What is LOF in a Nutshell?
Pre eminent post reward salvage contract for any vessels that find themselves in danger
Slightly longer explanation…
LOF is the short hand form for the Lloyds Standard form of Salvage (19th Century)
Most recent 2020 version
What are the main features of the LOF
No need for the vessel to agree to a sum upfront
Very quick process for VL in distress - No delay
Contract automatically binds the relevant interest to the salvage (Bunker/Cargo/Vessel)
No cure / no pay
