Danish Maritime Law: Salvage (Chapter 16)

Flashcards regarding the legal definitions, duties, rewards, and distribution rules for maritime salvage according to Søloven (Danish Maritime Law) Chapter 16.

Salvage (Bjærgning)

Any act undertaken to assist a vessel or any other object which is wrecked or in danger in navigable waters or in any other waters.

Vessel (Fartøj)

Any ship or vessel, or any construction capable of being navigated.

Object (Genstand)

Any physical property not permanently attached to the shoreline, including freight at risk.

Environmental Damage (Miljøskade)

Substantial physical damage to human health or to marine life or resources in coastal or inland waters or areas adjacent thereto, caused by pollution, contamination, fire, explosion, or similar major incidents.

Exclusion for Offshore Units

The provisions of Chapter 16 do not apply to fixed or floating platforms or mobile offshore drilling units when they are on location for the exploration, exploitation, or production of seabed mineral resources.

Modification of Salvage Contracts

A contract may be set aside or modified if it was entered into under undue influence or the influence of danger and the terms are inequitable, or if the salvage reward is disproportionate to the service rendered.

Duty of Due Care

The salvor’s obligation to carry out salvage operations with due care and to exercise due care to prevent or minimize environmental damage.

Useful Result

The condition that salvage operations must lead to a successful outcome to entitle the salvor to a salvage reward.

Salvage Reward Limit

Except for interest and costs, the reward shall not exceed the value of the salvaged property.

Life-saving Contribution

While saving lives does not independently entitle one to a reward, life-salvors are entitled to a fair share of the salvage reward paid for property or for preventing environmental damage.

Criteria for Fastsættelse af Bjærgeløn

Factors including the value of the salvaged property, skill in preventing environmental damage, degree of success, nature of the danger, time spent, costs, and the availability of equipment.

Special Compensation (Særligt vederlag)

Payment awarded to a salvor who has performed salvage operations on a vessel which by itself or its cargo threatened environmental damage, covering the salvor's expenses.

Environmental Bonus

An increase in special compensation of up to $30\%$ of expenses (or up to $100\%$ if deemed fair by the court) if the salvor actually prevented or limited environmental damage.

Negative Misconduct Adjustment

Special compensation may be reduced or denied if the salvor has been negligent and thereby failed to prevent or minimize environmental damage.

Excluded Assistance

No reward is due if the service is considered a normal fulfillment of a pre-existing contract or if it was performed against an express and reasonable prohibition by the owner or master.

Pre-distribution Deductions

Before the salvage reward is split, deductions are made for damages to the salvaging vessel/cargo and expenses for fuel, wages, and provisions incurred during the operation.

Standard Apportionment (Shipowner/Crew)

The remaining salvage reward is typically distributed with $\frac{3}{5}$ to the shipowner and the rest shared among the crew.

Standard Distribution (Master/Crew)

Of the crew's share of the reward, $\frac{1}{3}$ goes to the Master and $\frac{2}{3}$ is distributed among the rest of the crew in proportion to their wages.

Master's Minimum Share

The Master's share must be at least double the share of the highest-paid seaman.

Provision of Security

On the salvor's request, the liable person must provide security for the claim (including interest and costs), after which the salvor cannot invoke a maritime lien.

Restricted Removal

Salvaged property may not be moved from the first port of safety without the salvor's permission until security for the claim has been provided.

Sovereign Immunity (Section 453)

No legal action may be taken against a foreign state for the salvage of warships or other non-commercial state vessels, nor can non-commercial state-owned cargo be seized.