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International Marine Claims Conference Dublin October 2005

International Marine Claims Conference Dublin October 2005. Salvage Session – SCOPIC Chris Beesley Ince & Co, London. CASE STUDY 1. Large bulk carrier with major structural damage deep sea. SCOPIC invoked immediately. Long services. Salved values: US$26 million

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International Marine Claims Conference Dublin October 2005

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  1. International Marine Claims ConferenceDublin October2005 Salvage Session – SCOPIC Chris Beesley Ince & Co, London

  2. CASE STUDY 1 Large bulk carrier with major structural damage deep sea. SCOPIC invoked immediately. Long services. Salved values: US$26 million SCOPIC costs: US$20 million Article 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.

  3. CASE STUDY 2 Small loaded container ship with heavy damage. SCOPIC invoked immediately. Long services. Salved values: US$7 million SCOPIC costs: US$3 million Article 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:

  4. 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?

  5. CASE STUDY 3 Small 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

  6. CASE STUDY 4 Chip 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 without complete 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

  7. International Marine Claims ConferenceDublin October 2005 Salvage Session – SCOPIC Chris Beesley Ince & Co, London

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