United Salvage Pty Ltd v Louis Dreyfus Armateurs SNC

United Salvage Pty Ltd, the salvor, sought to recover a quantum meruit for salvage services provided to the La Pampa, a bulk carrier vessel, which had run aground. The dispute came before the Federal Court of Australia, where the primary judge had already determined that a just and equitable reward was to be assessed according to the criteria set out in Article 13 of the 1989 Salvage Convention. The primary judge had determined that the just and equitable reward was USD2.3 million. The salvor appealed the amount of the reward, arguing it was excessive. The shipowner contended the appeal should be dismissed and that the salvor should pay its costs. The central issue before the court was whether the primary judge had erred in his assessment of the quantum of the salvage reward. Specifically, the court needed to determine whether the primary judge had applied the correct legal principles in assessing the factors outlined in Article 13 of the 1989 Salvage Convention and whether the reward was just and equitable.

The court found that the primary judge had correctly applied the legal principles in assessing the factors outlined in Article 13 of the 1989 Salvage Convention. It was noted that there are no bright lines, controlling considerations, or set formulas in fixing an appropriate award for salvage services, and the weight to be assigned to each factor is dependent on the circumstances. The court held that the primary judge had properly exercised his discretion in determining the weight to be given to each factor and that the award of USD2.3 million was just and equitable. The court further held that the primary judge had not erred in not giving significant weight to the prospective liability of the vessel to third parties as a general enhancing factor in fixing the reward. The appeal was dismissed, and the salvor was ordered to pay the shipowner's costs of the appeal.