International Marine Claims

Conference Dublin October 2005

Salvage Session – SCOPIC

Chris BeesleyInce & Co, London

CASE STUDY 1Large bulk carrier with major structural damage deep sea.SCOPIC invoked immediately.Long services.Salved values: US$26 millionSCOPIC costs: US$20 millionArticle 13 assessment: ± US$15 million

Issues: Hull/P&I in disagreement over Article 13. Hull wishes to make formal settlement offer. P&I do not. SCOPIC costs agreed – who pays for arbitration. Owner caught in middle. No leverage over cargo.

CASE STUDY 2Small loaded container ship with heavy damage.SCOPIC invoked immediately.Long services.Salved values: US$7 millionSCOPIC costs: US$3 millionArticle 13 assessment: ±US$3.5 million

Delay in port entry due securities formalities, SCOPIC day cost US$50,000

Issues: Container terminal required onerous L/G to permit

discharge ($200,000).

Container/cargo owners will not provide.

Owner impecunious but in any event:

CASE STUDY 2 No recourse if he provides (not GA).

No claim on P&I (? sue and labour).

Salvor won’t/not obliged to provide.

P&I forced to pay to save SCOPIC exposure which did not exist before.

Should LOF Arbitrator be told of the SCOPIC costs when determining Article 13 award?

CASE STUDY 3Small bulker immobilised deep sea.Expected salved fund US$20 million.Salvors negligently lose tow in proximity to hostile coast.Ship grounds heavily – SCOPIC invoked.Ship CTL.Wreck removal notice. Authorities refuse release Salvors.

Issues: Salvors ‘benefit’ from own negligence? P&I must provide SCOPIC security Subrogated H&M have claim for negligence P&I has claim for negligence Assessment of damages, set-off, limitation No Art 18 in SCOPIC

CASE STUDY 4Chip carrier aground on rocks – probable CTL.SCOPIC invoked immediately.Bunker removal – wood chip cargo contaminated with bunkers.Impossible to remove all traces of bunkers from ship/cargo

withoutcomplete removal.Wreck removal notice.

Issues: Code of Practice ISU/P&I – no unreasonable termination Spirit of SCOPIC – ongoing pollution threat Complete wreck removal cheaper by renegotiation than

under SCOPIC tariff When/should notice of termination be given? Politics

International Marine Claims

Conference Dublin October 2005

Salvage Session – SCOPIC

Chris BeesleyInce & Co, London