Issue link: https://maltatoday.uberflip.com/i/1534549
ON 27 March 2025, the First Hall of the Civil Court, presided over by Madame Justice Joanne Vella Cuschieri, delivered a judgment in the case of Sandy Yacht Marina Limited vs the vessel M/Y Ley- mor, registered in Malta with Official No. 17186. The Court ruled in favour of the claim- ant company in a dispute concerning unpaid maritime salvage services, and in doing so, also outlined the essential requisites for a successful claim for the payment of salvage services under Mal- tese maritime law. This case concerned an incident where- in the defendant vessel was at imminent risk of sinking and was offered assistance by the claimant company. The core is- sue before the Court was whether the assistance provided constituted salvage services within the meaning and scope of the applicable legal provisions, more specifically Chapter 234 of the Laws of Malta, the Merchant Shipping Act. Ac- cordingly, the Court was called upon to assess whether the elements necessary to establish a valid claim for salvage had been satisfied in the circumstances. The Court started off by making ref- erence to Black's Law Dictionary which defined a salvage service as follows: "The aid or rescue given, either voluntarily or by contract, to a vessel in need of assis- tance because of present or apprehend- ed danger. Although salvage may involve towing, it is distinguished from towing service, which is rendered merely to ex- pedite a voyage, not to respond to dan- gerous circumstances." Additionally, it also referred to the In- ternational Salvage Convention of 1989 which emphasises that a salvage opera- tion encompasses any act or activity un- dertaken to assist a vessel or any other property in danger, whether in navigable waters or any other waters whatsoever. The Court then proceeded to exam- ine Articles 343 and 344 of the Maltese Merchant Shipping Act. It has been confirmed that if any vessel, whether Maltese or foreign, becomes wrecked, stranded, or is in distress at any location on or near the coasts within the Mal- tese territorial jurisdiction, and services are provided by any individual to assist such vessel or save any part thereof, the person providing such services shall be entitled to a reasonable salvage reward which is to be paid by the owner of the vessel. Moreover, the law explicity states that no salvage is due to persons having a spe- cific relationship with the vessel in ques- tion, whereby it is their duty to render such assistance, nor to persons who pro- vide assistance despite the express and reasonable prohibition from the vessel. Consequently, it was also incumbent up- on the Court to determine whether the services provided by the claimant con- stituted salvage services, as required by law, for a reward to be justified. Through local case-law, the Court identified four essential requisites that must be satisfied for salvage services to warrant a reward: 1. The service must be rendered to a legally recognised subject of salvage, that is to say, to vessels, their apparel, cargo and merchandise, bunkers, wreck, and so called freight at risk; In this case, it was confirmed that the catamaran belonged to Barra Scuba Limited, thereby undoubtedly satisfying the first requisite. 2. The service must be voluntary; Moreover, the diver employed by the claimant company testified that he was the individual who initially provided salvage services to the vessel in distress. The Court affirmed that, as an employee of the claimant company, the diver act- ed voluntarily, as he was under no legal obligation to assist or render services to the vessel in question. 3. The subject of the salvage must be in danger; Testimonies indicated that the ves- sel was already taking on water, which posed a risk of it sinking completely, or at the very least, causing severe damage to the machinery. This highlighted the necessity of the claimant's intervention to prevent such damage or total loss of the vessel, hence, the third criterion was also satisfied. 4. The service must be successful. The Court was satisifed that the sal- vage services provided by the claimant company were instrumental in the res- cue of the defendant vessel. It held that the arrival of the vesse's crew to offer assistance shortly thereafter did not di- minish the fact that the claimant had, in facr, provided the necessary assistance for the rescue operation to be deemed successful. Therefore, with the final element sat- isfied, the Court concluded that all the necessary requirements for a successful salvage action were present. Furthermore, as for the amount claimed by the claimant, the Court ex- amined the calculation of the sum which was determined in accordance with the law, based on the value of the defendant vessel as reflected in the price at which it was being offered for sale. It was ob- served that this valuation was not con- tested by the defendant company. Consequently, the Court concurred with the claimant and ruled that the de- fendant vessel owed a sum of €11,800. The defendant company, now the debt- or, was subsequently ordered to pay this amount, along with all applicable addi- tional expenses and LAW Law Report Court clarifies legal criteria for salvage services claims under Maltese maritime law LAW REPORT MALCOLM MIFSUD Mifsud & Mifsud Advocates MALCOLM MIFSUD Mifsud & Mifsud Advocates This case concerned an incident wherein the defendant vessel was at imminent risk of sinking and was offered assistance by the claimant company. maltatoday | SUNDAY • 20 APRIL 2025 8 Court clarifies legal criteria for salvage services claims under Maltese maritime law (File Photo)