What are the principles of modern salvage law, what is general average, and what do entitlement, artificial, adjustment and contestation mean?
Short answer
| Aspect | Meaning |
|---|---|
| Salvage | no cure, no pay (article 12); reward on the article 13 criteria; article 14 special compensation or SCOPIC for an environmental threat |
| General average | a deliberate sacrifice for the common safety, shared by contributory values under the York-Antwerp Rules |
| Entitlement | the sacrificing party claims rateable contributions; a GA bond and guarantee before cargo is released |
| Artificial | a deliberate, intentional act, never an accidental loss |
| Adjustment | the average adjuster’s statement to the York-Antwerp Rules |
| Contestation | disputes over the act, the values or the apportionment, to arbitration or the courts |
- Salvage principles (1989): voluntary assistance to property in danger; no cure, no pay (article 12); reward on the article 13 criteria, never above the salved value; special compensation for an environmental threat (14); duty of care (8); prohibition (19), life salvage (16), security (21); the LOF.
- General average: a voluntary, intentional, reasonable sacrifice or expenditure in peril for the common safety of ship, cargo and freight, shared by contributory values under the York-Antwerp Rules.
- i. Entitlement: the party who suffered the sacrifice or incurred the expenditure gets a rateable contribution; the shipowner declares GA and takes a GA bond and guarantee before releasing cargo.
- ii. Artificial: the loss must be deliberate and man-made, not accidental: deliberate flooding is GA, fire damage itself is not.
- iii. Adjustment: an average adjuster’s statement values the allowable sacrifices, fixes contributory values and computes each contribution.
- iv. Contestation: disputing whether the act was voluntary, reasonable and for the common safety, the values or the apportionment; negotiation, then arbitration or the courts.
Full answer
The full answer explains each point step by step, with the regulations and figures behind it and the discussion from other candidates. It is in the MEO Class I section of the Marine One forum, open to members enrolled for the MEO Class I exam.