Owners, Master and Crew of the Steamship Cartela v Ship Inverness Shire

The parties to this dispute were the owners, master, and crew of the steamship *Cartela* (appellants) and the ship *Inverness Shire* (respondent). The *Cartela* had entered into a contract with the Tasmanian Government to assist a distressed vessel, and subsequently, its nominated master agreed to tow the *Inverness Shire* for a sum of £500. The *Cartela*'s owners sought to recover this £500, or alternatively, salvage remuneration. The case was heard in the High Court of Australia on appeal from the Supreme Court of Tasmania.

The central legal issues before the High Court were: firstly, whether the services rendered by the *Cartela* constituted salvage, and secondly, the validity and enforceability of the £500 towage agreement between the *Cartela*'s nominated master and the master of the *Inverness Shire*. The court also considered the implications of the initial contract with the Government, the discrepancy in the size of the vessel expected and the vessel encountered, and the non-disclosure of the Government contract to the master of the *Inverness Shire*.

A majority of the High Court, comprising Griffith C.J., Barton and Rich JJ., held that the claim for salvage was negated by the fact that the services were rendered under a contractual obligation and in the course of official duty. They found that the £500 towage contract was vitiated because the master of the *Inverness Shire* was unaware that the *Cartela* was already engaged under a special contract with the Government. However, the majority also determined that the services actually rendered were substantially more onerous and involved greater risk than those contemplated in the initial contract with the Government. Applying a principle of maritime law, they concluded that additional remuneration was recoverable against the ship, beyond the £25 agreed with the Government, because the circumstances had become substantially different from those originally supposed. The court assessed this additional remuneration at £175, to be distributed among the owners, the nominated master, and the crew.