Law Summary
Requirement for Captain's Consent for Salvage Operations
- No salvage activities or recovery of merchandise from shipwreck may be undertaken without the captain's or his authorized representative's consent when present.
Procedure When Captain or Owner is Absent
- Salvors must deliver recovered vessels or merchandise to the customs collector if available, or otherwise to the provincial treasurer or municipal president as soon as possible.
Owner's Right to Redeem Salvaged Property
- The owner or representative may reclaim the salvaged vessel or cargo by paying expenses and a salvage reward or providing a securing bond.
- The bond's amount and sufficiency will be determined by customs collector or the Court of First Instance if there is no agreement.
Role and Duties of Authorities Receiving Salvaged Property
- Custodial authorities must safeguard and inventory salvaged goods.
- They may order public auction of goods in danger of loss or prejudicial to the owner's interest.
- They must publish a notice within 30 days in a local or nearest newspaper containing disaster details, item descriptions, and a call for claims.
Conditions for Delivery of Salvaged Property to Owner
- Delivery to the owner or representative requires no disputes regarding value and provision of bond securing expenses and reward payment.
- If valuation disputes arise, delivery is deferred pending Court of First Instance decision.
Sale of Salvaged Property if No Claim is Made
- If no claim within three months post-advertisement, salvaged items are sold at public auction.
- Proceeds after expenses and rewards are deposited with the Insular Treasury.
- After three years without claim, half of the proceeds accrue to the salvor and half to the government.
Persons Disqualified from Salvage Reward
- Shipwrecked vessel's crew.
- Persons who salvage against captain's opposition.
- Those who fail to comply with delivery procedures under Section 3.
Validity and Adjustment of Salvage Reward Agreements
- Agreements made during peril may be challenged for excessiveness.
- Courts may reduce reward to an amount proportional to circumstances.
Court Determination of Salvage Reward
- In absence of agreement or in contested cases, the Court of First Instance determines the salvage reward.
- Factors considered include expenditures, zeal, time, services rendered, number of helpers, danger faced, and the value of salvaged goods after expenses.
Deduction Order from Sale Proceeds
- Deductions: custody and conservation expenses, advertisement, auction costs, taxes or duties, salvage expenses.
- Reward shall not exceed 50% of net remaining proceeds after deductions.
Division of Reward Among Salvors
- When multiple salvors intervene, rewards are divided proportionally to services rendered or equally if uncertain.
- Those exposed to dangers while saving persons also share in the reward.
Distribution of Reward When Salvage Involves Another Vessel
- The salvage reward divides between the assisting vessel's owner, captain, and crew.
- Distribution default: owner receives half, captain a quarter, and remaining crew the last quarter proportionate to their salaries.
- Expenses and salvage rewards chargeable against salvaged goods or their value.
Effectivity
- The Act took effect upon its passage on February 4, 1916.