Salvage - Definition - Law Dictionary Home Dictionary Definition salvage

Definition :

Salvage, allowance or compensation made by maritime law to those by whose exertions ships or goods have been saved from the dangers of the seas, fire, pirates, or enemies.

This was allowed by the laws of Rhodes, Oleron, and Wisby, and is also allowed by all modern maritime states; the person who saves goods from loss or imminent peril has a lien upon them, and may retain them till payment of salvage. In this, however, the maritime law differs from the Common Law. No doctrine similar to 'salvage' applies to things lost upon land, nor to anything except ships or goods in peril at sea, Falcke v. Scottish Imperial Insurance Co., (1886) 34 Ch D 248, per Bowen, L.J.

If the salvage be performed at sea, or on land (Judic. Act, 1925, s. 22), the Court of Admiralty has jurisdiction, and fixes the sum to be paid, adjusts the proportions, and takes care of the property pending the suit; or, if necessary, directs a sale and divides the proceeds between the salvors and the proprietors. In fixing the rate of salvage, the court has regard not only to the labour and perils of the salvors, but also to the situation in which they stand to the property saved, to the promptitude and alacrity manifested by them, and the value of the ship and cargo, and the danger from which they were rescued. In some cases as much as half of the property saved has been allowed as salvage; in others only a tenth.

The crew of a ship are not entitled to salvage or any unusual remuneration for extraordinary efforts they have made in saving her, it being their duty as well as interest to contribute their utmost upon such occasions, the whole of their possible service being pledged to the master and owners. Neither are passengers entitled to anything for the ordinary assistance they may have afforded a vessel in distress. But a passenger is not bound to remain on board a ship in danger, if he can leave her; and if he performs any extraordinary service, he is entitled to a proportionable recompense. Consult Kennedy on Salvage, Abbott on Shipping, Maude and Pollock on Shipping, Maclachlan on Shipping; and see Merchant Shipping Act, 1894 (57 & 58Vict. c. 60) (substituted for Merchant Shipping Act, 1854 [17 & 18 Vict. c. 104)], ss. 544-565, Chitty's Statutes, tit. 'Shipping.' By s. 510 (2) of the Act of 1894, 'salvage' in that Act 'includes all expenses properly incurred by the salvor in the performance of the salvage services.' See also the Merchant Shipping (Safety and Load Line Conventions) Act, 1932; and SUE AND LABOUR CLAUSE.

1. The rescue of imperiled property

2. The property saved or remaining after a fire or other loss, sometimes retained by an insurance company that has compensated the owner for loss, Black's Law Dictionary, 7th Edn., p. 1340.