Semco Salvage & Marine Pte. Ltd. v. Lancer Navigation Co.

[1997] 1 Lloyd’s L. Rep. 323, 1997 AMC 1989 (1997)

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Semco Salvage & Marine Pte. Ltd. v. Lancer Navigation Co.

House of Lords
[1997] 1 Lloyd’s L. Rep. 323, 1997 AMC 1989 (1997)

CS

Facts

The Nagasaki Spirit was an oil tanker that collided with a container ship, the Ocean Blessing, in the Malacca Straits. Thousands of tons of oil were released into the sea and caught fire, and the flames engulfed both vessels. All of the crew on the Ocean Blessing perished, and only two crew members survived from the Nagasaki Spirit. Semco Salvage & Marine Pte. Ltd. (Semco) (plaintiff) agreed to salvage both vessels. Semco was able to extinguish the fires, offload the remaining oil, and bring the Nagasaki Spirit into port. Semco’s salvage claim against the owner of the Nagasaki Spirit, Lancer Navigation Co. (defendant) included a claim for special compensation for environmental risk, made available under the International Convention on Salvage of 1989. The claim went to arbitration, and the arbitrator found environmental expenses in excess of the salvage award and therefore awarded special compensation. An appeal arbitrator found that salvage was in excess of environmental expenses, however, and awarded no special compensation. A series of cross-appeals followed, and the case eventually came before the House of Lords.

Rule of Law

Issue

Holding and Reasoning (Mustill, L.)

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