Title
Salvage Rights and Rewards Act
Law
Act No. 2616.
Decision Date
Feb 4, 1916
The Salvage Law in the Philippines establishes regulations for individuals who render assistance to vessels and their cargoes, entitling them to a reward for salvage, while also outlining the responsibilities of authorities in safeguarding and selling salvaged items.

Questions (Act No. 2616.)

A reward is due when (1) the vessel or cargo is beyond the crew’s control or has been abandoned and is picked up and conveyed to a safe place by other persons, and (2) persons not included in that first case who assist in saving the vessel or cargo from shipwreck are also entitled to a like reward.

No one shall take from the sea, or from the shores or coasts, any merchandise or effects proceeding from a shipwreck, nor proceed to salvage the vessel, without the consent of the captain or the person acting for him.

They must convey and deliver it as soon as possible to the collector of customs if the port has one; otherwise, to the provincial treasurer or the municipal president.

The owner or representative has the right to delivery of the vessel or things saved provided they pay or give a bond to secure the expenses and the proper reward.

It is determined by the collector of customs or by the judge of the Court of First Instance of the province where the things saved may be found.

They must: (a) safeguard and inventory the things saved; (b) order public auction of items in danger of immediate loss or whose conservation is prejudicial to the owner’s interests when no objection is made; and (c) advertise within thirty days in a local newspaper or nearest newspaper published, stating details of the disaster and marks and number of effects, requesting claims.

Delivery is ordered if there is no controversy over value and the claimant provides a bond to secure payment of expenses and proper reward; otherwise, delivery is withheld until the Court of First Instance decides the matter.

The things saved shall be sold at public auction, and after deducting expenses and proper reward, the proceeds are deposited in the Insular Treasury.

If three years pass without a claimant, one-half of the deposit is adjudged to the person who saved the things, and the other half to the Insular Government.

The following have no right to a reward: (a) the crew of the shipwrecked vessel or crew who was in danger of shipwreck; (b) a person who commenced salvage despite opposition of the captain or representative; and (c) a person who failed to comply with Section 3’s delivery requirement.

Yes. If during the danger an agreement is entered concerning the reward, its validity may be impugned if it is excessive, and it may be required to be reduced to an amount proportionate to the circumstances.

The Court of First Instance in the province where the things salvaged are found fixes the reward, mainly considering: expenditures; zeal; time employed; services rendered; excessive expenses; number of persons aided; dangers to people and their vessels; danger to the salvaged items; and value of the items after deducting expenses.

After deduction of custody/conservation/advertisement/auction expenses and taxes/duties, then salvage expenses, the reward for salvage/assistance is taken from the net amount remaining and shall not exceed fifty percent (50%) of that net amount remaining.

It is divided in proportion to each person’s services; if there is doubt, in equal parts. Also, those who exposed themselves to the same dangers to save persons have a right to participation in the reward.

The reward is divided between the owner, the captain, and the remainder of the crew of the assisting/salvaging vessel so the owner gets half, the captain gets one-fourth, and the remaining crew gets the other fourth, in proportion to their respective salaries, absent an agreement to the contrary. Salvage expenses and reward are a charge on the salvaged things or their value.

It prohibits anyone from taking shipwreck merchandise or proceeding to salvage the vessel when the captain (or person acting in his stead) is present unless there is the captain’s consent.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.