Owners of the Motor Vessel Tojo Maru v NV Bureau Wijsmuller (The Tojo Maru)
A salvor who negligently causes damage to the salved property in the course of salvage operations is liable for that damage, and may have to set it off against the salvage reward.
Facts
The Tojo Maru, a tanker, was damaged in a collision in the Persian Gulf, and salvors were engaged under a Lloyd's Open Form agreement. During the salvage, the salvors' chief diver, contrary to instructions, fired a bolt into the ship's plating, which caused an explosion and fire that seriously damaged the ship. The salvage was nevertheless successful. The salvors claimed a salvage reward, and the owners counterclaimed for the damage caused by the explosion.
Legal principle
The House of Lords held that the salvors were liable for the damage caused by the negligence of their diver, and that the owners could counterclaim for damages exceeding the salvage reward. The House rejected the argument that a salvor whose services were on balance beneficial could not be liable for damage caused by negligence in the course of the services, and that the only effect of negligence was to reduce the reward. A salvor owes a duty of care to the owners of the salved property, and is liable for breach of that duty in the ordinary way. The salvors were also unable to limit their liability under the Merchant Shipping Acts, because the diver was not acting in the management of a ship.
Related cases on salvage, general average, collisions, arrest and limitation
- CMA CGM SA v Classica Shipping Co Ltd (The CMA Djakarta) [2004] EWCA Civ 114
- Edwinton Commercial Corp v Tsavliris Russ (Worldwide Salvage and Towage) Ltd (The Sea Angel) [2007] EWCA Civ 547, [2007] 2 Lloyd's Rep 517
- Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2002] EWCA Civ 1407, [2003] QB 679
- Mareva Compania Naviera SA v International Bulkcarriers SA (The Mareva) [1975] 2 Lloyd's Rep 509
- Morrison Steamship Co Ltd v Greystoke Castle (Cargo Owners) [1947] AC 265
- North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd (The Atlantic Baron) [1979] QB 705
- Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd (The Wagon Mound (No 1)) [1961] AC 388
- Semco Salvage & Marine Pte Ltd v Lancer Navigation Co Ltd (The Nagasaki Spirit) [1997] AC 455
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