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Specialists in Shipping, Marine Insurance & Transit Law, London |
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AUTUMN NEWSLETTERCommentary by Michael Buckley
Salvage Liaison GroupThis body, of which I am the deputy chairman, was formed some years ago to provide a focus for the discussion and resolution of practical problems relating to the conduct of salvage operations and salvage claims, which are not more appropriately matters for the Lloyd’s Form Working Party, which is concerned solely with the terms of Lloyd’s Form of Salvage Agreement and the Lloyd’s salvage arbitration system. The Group’s most significant achievement so far is that it was largely
responsible for the In common with the Lloyd’s Form Working Party, the Group’s membership comprises representatives of all sectors of the shipping, salvage and marine insurance industries but, whereas the Lloyd’s Form Working Party has only one representative from the International Group of P&I Clubs, each of the Clubs has its own representative at meetings of the SLG. That may perhaps explain why SLG meetings became the vehicle which enabled SCOPIC to be agreed, because it was the P&I Clubs which were the most critical of Article 14 , the most vocal of the advocates for change and the driving force behind the initiative. When SCOPIC was formally introduced 2 years ago, all concerned were satisfied that it should enable Article 14 type claims to be settled much more easily, but nobody was certain that it would fulfil these expectations, and it was therefore agreed that its continuance should be reviewed after a 2 year trial period, which expired recently. I am glad to be able to report that, when the Group met for the 12th time on 10th October 2001, it was agreed that SCOPIC should continue indefinitely since, although there have inevitably been a few problems, it has achieved its principal objectives. The detailed terms of SCOPIC will remain under review and some modest amendments were agreed in principle at this month’s meeting, including a provision intended to restrict the ability of any party to call the SCR or Special Casualty Representative as a witness in any proceedings not directly related to the SCOPIC claim. BMLA Salvage CommitteeThe British Maritime Law Association, which is effectively the UK branch of the Comité Maritime International, oversees a number of committees appointed to provide comments on developments in a wide range of specialist subjects, all of which form part of maritime law including salvage. These committees are frequently requested by government departments to provide expert comments and advice on matters which are under consideration either within a UK domestic context or in the context of a proposed international convention. The BMLA Salvage Committee, of which I am Secretary, met on 9th October to provide comments to the Foreign and Commonwealth Office upon the draft UNESCO Convention on the Protection of Underwater Cultural Heritage, the purpose of which is to establish an international regime for protecting “all traces of human existence having a cultural, historical or archaeological character which have been partially or totally underwater, periodically or continuously, for at least 100 years”. Whilst the Salvage Committee naturally supported the draft Convention’s objectives, it expressed its concern that the draft failed to accord any recognition to the rights of the lawful owners of property constituting underwater cultural heritage which would prejudice the interests of those owners, including subrogated underwriters, who had not abandered their interest in the property. This was considered to be in conflict with Article 303 of UNCLOS 1982 and the European Convention on Human Rights which seeks to protect property rights. The Committee was also critical of provisions which adversely affect the rights of salvors which were also considered to be in breach of Article 303 of UNCLOS 1982 and Article 30.1(d) of the International Salvage Convention. The Committee felt that legitimate salvage activities conducted on a reasonable commercial basis were not incompatible with the stated purpose of the draft Convention and would often be the best means of so doing given the expense and expertise likely to be necessary. In that respect, the Committee was in full agreement with the comments which had already been made to UNESCO by the President of CMI. The attention of the Foreign and Commonwealth Office was drawn to the fact that, in this country, the Protection of Wrecks Act 1973, whilst capable of improvement, provided a much more satisfactory system for the protection of underwater cultural heritage than that proposed in the draft Convention. A letter has therefore been written to the Foreign and Commonwealth Office by the Chairman of the Salvage Committee expressing these concerns. Lloyd’s Form Working PartyThe Working Party meets annually to discuss LOF and the arbitration system for the resolution of salvage claims, which Lloyds administers. The next meeting of the Working Party is due to take place on 16th November 2001 but, since LOF 2000 was only introduced a little over 12 months ago and has not so far given rise to any difficulties, it is not expected that there will be any matters of great importance on the agenda. Admiralty Solicitor’s GroupThe ASG has been in existence for many years and includes in its membership all the leading UK maritime law firms. The members of ASG co-ordinate in marketing the group as a whole. This has
resulted in the creation of an ASG website and the agreement of the members
to promote the group’s activities in other ways, including the taking
of a stand at exhibitions such as Posidonia and , It may be of interest to report that the ASG is presently in negotiations with the International Group of P&I Clubs with a view to agreeing a standard wording for P&I Club guarantees to be provided by way of security for cargo claims against the carrying vessel. These negotiations are currently at an advanced stage and some agreement may emerge in the not too distant future. Also, the increasing popularity of mediation as a means of settling disputes, has led to the formation of a group called the Maritime Solicitors Mediation Service or MSMS with which the ASG has become associated. Its purpose is to create a panel of maritime solicitors, who are also accredited mediators, whose services will be available for the benefit of those involved in a shipping dispute, who wish to attempt to resolve their differences by mediation. At present, discussions are taking place to determine the scope and terms of the service to be offered, but these should reach a conclusion very soon. The meeting which did not take place There is a view amongst certain underwriters in the London market that the
current form of hull and machinery policy and the Institute Time Clauses need
to be modernised. A market meeting was to have taken place in September at Lloyd’s
to debate this subject to which five law firms specialising in marine insurance,
including this firm, had been invited to present their ideas. Unfortunately
however, the meeting had to be postponed. Nevertheless, this project has not
been abandoned and the Average Adjusters’ Association took the opportunity
on 16th October to arrange a seminar at the Baltic Exchange to debate the suggestion,
which may well be resurrected in the near future. Return to News |
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