Merchant Shipping (Salvage and Wreck) Act, 1993
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Special compensation. |
27.—(1) If the salvor has carried out salvage operations in respect of a vessel which, by itself or its cargo, threatened damage to the environment and has failed to earn a reward under section 26 at least equivalent to the special compensation assessable in accordance with this section, that salvor shall be entitled to special compensation from the owner of that vessel equivalent to expenses incurred by the salvor and calculated by reference to the provisions of subsection (3). | |
(2) If, in the circumstances set out in subsection (1), the salvor by undertaking salvage operations has prevented or minimized damage to the environment, the special compensation payable by the owner to the salvor under that subsection may be increased up to a maximum of 100 per cent. of the expenses incurred by the salvor, after taking into account the criteria set out in section 26 (1) which are relevant. | ||
(3) In calculating the salvor's expenses for the purposes of subsections (1) and (2), there shall be taken into account by the arbitrator or judge in the arbitral or judicial proceedings concerned the out-of-pocket expenses reasonably incurred by the salvor in the salvage operation and a fair rate for equipment and personnel actually and reasonably used in the salvage operation, taking into consideration the criteria set out in paragraphs (h), (i) and (j) of subsection (1) of section 26 . | ||
(4) The total special compensation under this section shall be paid only if and to the extent that such compensation is greater than any reward recoverable by the salvor under section 26 . | ||
(5) In fixing a reward under section 26 and assessing special compensation under this section the arbitrator or judge in the arbitral or judicial proceedings concerned shall be under no duty to fix a reward under section 26 up to the maximum salved value of the vessel and other property before assessing the special compensation to be paid under this section. | ||
(6) If the salvor has been negligent and has thereby failed to prevent or minimize damage to the environment, that salvor may be deprived of the whole or part of any special compensation due under this section. | ||
(7) Nothing in this section shall affect any right of recourse on the part of the owner of the vessel. |