Newsfront: Salvage

Manolis EglezosFounder & Managing Partner, Manolis Eglezos & Associates

A vessel moored in the Elefsina anchorage, due to high winds, drifted towards other vessels anchored at the same area. The vessel had been seized by a bank, which had placed a watchman onboard. In view of the situation faced, the Port Authority advised the former exploiter and majority shareholder of the vessel, a tug jv responsible for rendering assistance, the shipowning company and the manager of the vessel of the situation.

The tug jv sent two tugs to the area and they managed to immobilise the vessel and thus eliminate the risk of collision which was foreseen. The tug interests sought salvage award, however the owners contended it was mere towage. Under the circumstances of strong winds, only one watchman onboard, and that the vessel was drifted towards two other vessels lying in her proximity, the court found there was an existing peril of loss or substantial damages to the vessel. Accordingly the services rendered were those of salvage and not of towage, and the tugs were entitled to a salvage award.

Piraeus Court of Appeal Judgment no 893/2013, President: P. Tsandekidou, Rapporteur Judge: G. Kokkoris, Attorneys at law: Chr. Stefas, St. Papandreopoulos, Maritime Law Review vol. 41, p. 311. NOTE: The usual dispute in maritime assistance is whether the services rendered are towage or amount to salvage. Tests are in place to define what applies, depending on the existence or reasonable apprehension of peril, which can lead to loss or damages. Of course for salvage remuneration to apply, successful result is also a condition. The legal column was written by Manolis Eglezos, Attorney at law,  Manolis Eglezos & Associates Law Firm, Attorneys at Law and Consultants