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In the 1960s and 1970s, there were a number of ageing single-skinned tankers coming to grief and letting huge slicks of crude oil escape. While passing ships were obliged to offer reasonable assistance to save life, they were reluctant to offer salvage services on a seeming reckless adventure to save
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Traditionally, the salvage reward has been subject to the salvor successfully saving the ship or cargo, and if neither is saved, the salvor gets nothing, however much time and money has been spent on the project. This harsh principle is called "No cure – no pay"; and at the top of page one of
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a reward provided that the salvor had exercised due diligence in attempting to save the marine environment from pollution. This innovation proved very successful, and the international community was so delighted and impressed that only a few years later the 1989 Salvage
Convention came into force,
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After a stricken ship accepts an offer of salvage from a salvor, a binding contract is created. It is then normal to agree upon the LOF in the interests of certainty of terms. The LOF is called "open" because it specifies no particular sum for the salvage job. Indeed it may not specify a sum, as
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a low value hulk where third party liability risks might be enormous. Instead, salvors preferred to work where there were richer pickings and fewer dangers. This situation alarmed coastal states (whose beaches were liable to pollution from oil slicks) and
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showed that it had been poorly drafted in places, and did not always provide adequate reimbursement to salvors. The international maritime industry joined with P&I Clubs in 2000 to develop the new
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and is the most commonly used form for international salvage. Innovations in the LOF 1980 have engendered a major change in environmental salvage.
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salvage is not a "contract for services", but an agreement to provide a service in the hope of a "reward" to be determined later by an
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adopting this new LOF idea. Specifically, articles 13 and 14 of the
Convention lay down the modern basis for making the award.
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To remedy the position, the Lloyd's Open Form (LOF) 1980 made provision for a stricken tanker to engage salvage services and
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The "marine environment" being protected is purely "coastal"; mid-oceanic pollution is not catered for.
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the LOF, beneath the title "Salvage
Agreement" is a statement of this fundamental premise.
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25:, formally "Lloyd's Standard Form of Salvage Agreement", and commonly referred to as the
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which could be annexed to the LOF to redress the shortcomings of the 1989 Convention.
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There are several recent versions of the LOF: 1980, 1990, 1995, 2000, 2010
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operation. Originating in the late 19th century, the form is published by
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The
Salvage Convention 1989 is now incorporated into the UK's
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When determining the salvage award, an arbitrator follows the
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Semco
Salvage & Marine Pte Ltd v. Lancer Navigation
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Although the 1989 Convention has been a success, the
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69:of civil salvage, which is itself subject to the
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281:Mandaraka-Sheppard, Aleka (1 April 2009).
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283:Modern Maritime Law and Risk Management
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62:specialise as maritime arbitrators.
381:Admiralty law in the United Kingdom
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285:(2nd ed.). Informa Law.
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356:The 2020 version of the form
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86:Modern environmental salvage
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16:Contract for marine salvage
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361:Lloyd's of London LOF page
341:(2nd ed.). Routledge.
191:Merchant Shipping Act 1995
210:SCOPIC - an acronym for "
54:in London, where several
162:Casualties included the
77:"No cure – no pay"
308:Law of Marine Insurance
71:Salvage Convention 1989
31:standard form contract
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325:[1997] UKHL 2
339:Marine Insurance Law
151:double-hulled tanker
113:The Nagasaki Spirit
52:arbitration hearing
255: 1860 Lush. 90
58:practising at the
45:The salvage reward
39:Lloyd's of London
23:Lloyd's Open Form
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35:marine salvage
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268:The Troilus
171:Amoco Cadiz
67:English law
370:Categories
292:1843118238
234:References
174:, and the
128:Footnotes
100:guarantee
120:form, a
214:pecial
168:, the
122:codicil
29:, is a
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253:,
118:SCOPIC
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226:lubs"
222:&
287:ISBN
149:See
21:The
224:I C
56:KCs
27:LOF
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216:Co
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220:P
212:S
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