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the latter shall be entitled to a reward for the

SALVAGE - Other persons who assist in saving the vessel
or its cargo from shipwreck shall be entitled
to similar reward.
i. Governing law: o There must be a marine peril
 Salvage Law (Act No. 2616) enacted on February o The service is voluntarily rendered
4,1916 and is not required as an existing
 Prior Salvage Law, the customs of place, and in duty or from a special contract
their absence, the general principles of law, were o There must be a success in whole or
applied by the courts in adjudicating salvage in part or that the service rendered
claims as there was, at that time, no express contributed to such success.
legislative act applicable thereto o The vessel is shipwrecked beyond
the control of the crew or shall have
ii. Definition: been abandoned
-SALVAGE – service which one person renders to
the owner of a ship or goods, employ his own IV. BASIS OF ENTITLEMENT TO SALVAGE REWARD
labor, preserving the goods or the ship which the - A salvage reward should neither be too
owner or those entrusted with the care of them liberal nor too stingy.
have either abandoned in distress at sea or - It should constitute a sufficient
unable to protect and secure. compensation for the outlay and effort of
the salvors, taking into account the rules
iii. Rationale: prescribed by Sec. 10 of Act no. 2616.
- Founded on the equity of remunerating - It should be liberal enough to offer an
private and individual services performed in inducement to others to render services in
saving, in whole or in part, a ship or its cargo similar
from impending peril, or recovering them
after actual loss. emergencies in the future.
- It is a compensation for actual services
rendered to the property charged with it, V. RIGHTS AND OBLIGATIONS OF SALVORS AND
and is allowed for meritorious conduct of the OWNERS
salvor, and in consideration of a benefit - Salvor is entitles to compensation for
conferred upon the person whose property services rendered, and in the enforcement of
he has saved. that right, he has under the Salvage Law, a
- A claim for salvage rests on the principle that lien upon the property salvaged whereby he
unless the property be in fact saved by those is not bound to part with the possession of
who claim the compensation, it cannot be the vessel salvaged or of the cargo saved
allowed, however benevolent their intention until he is paid his due compensation
and however heroic their conduct
- Compensation for voluntary salvage is a. If the ship and its cargo are saved by the
dictated by public policy to encourage the salvor, the salvage allowance should be
hardy and adventurous mariner to engage in charged against the ship and cargo in the
a laborious and sometimes dangerous proportion of their respective values, as in
enterprise and with a view to withdraw from the case of general average; and neither is
him every temptation to embezzlement and liable for the salvage due from the other.
dishonesty and in case he is successful, to Thus, in a personal action which is brought
grant him compensation against the owner of the ship, the liability of
the latter is limited to such part of the
II. KINDS OF SALVAGE SERVICES salvage compensation due for the entire
service as is proportionate to the value of the
1. Voluntary – compensation is dependent ship. Not only is the salvage charge a
upon success separate and divisible burden as between
2. Salvage service under a contract for per the ship and cargo, but also as between
diem or per horam wage – payable at all portions of the cargo belonging to different
events owners
3. Salvage service under a contract for a b. The salvor has a right of possession or a
compensation payable only in case of derelict for purposes of a salvage claim.
success c. When a vessel is found at sea, deserted, and
has been abandoned by the master and crew
III. CLAIM FOR VALID SALVAGE without the intention of returning and
- Salvage Law provides a reward for voluntary resuming possession, she is, in the sense of
salvage the law, derelict, abandoned and the finder
- Sec 1 thereof provides that when in case of who takes possession with the intention of
shipwreck, the vessel or its cargo shall be saving her gains a right of possession, which
beyond the control of the crew, or shall have he can maintain against the true owner.
been abandoned by them, and picked up and
conveyed to a safe place by other persons, However, while the salvor has the right to
retain the abandoned vessel or cargo until
the salvage is completed without
interference from other persons, it would
not be so if the salvor has inadequate means. i. Under Sec. 13 of the Salvage Law, reward is
In such a case, the salvor is bound to accept due not only to the owner of the salving
additional assistance from other salvors who vessel but the captain and crew as well.
may offer their services.
Thus, if a vessel or its cargo shall have been
d. On the other hand, the owner of the vessel assisted or saved, entirely or partially, by
which is a derelict does not renounce his another vessel, the reward for salvage or
right to the property. There is no assistance shall be divided between the
presumption of an intention to abandon owner, the captain, and the remainder of the
such property rights on the part of such crew of the latter vessel, so as to give the
owner under the Salvage Law. owner a half, the captain a fourth and all the
remainder of the crew the other fourth of
What the owner abandons temporarily is his the reward, in proportion to their respective
right of possession, which is thereby salaries, in the absence of an agreement to
transferred to the salvor who becomes the contrary.
bound to preserve the property with good
faith and bring it to a place of safety for
owner’s use.

e. In Sec. 3, the salvor who saves or picks up a

vessel or merchandise at sea, in the absence
of the ship captain, shipowner, or a
representative of either of them, they being
unknown, shall convey and deliver the vessel
or merchandise as soon as possible, to the
collector of customs, if the port has a
collector and otherwise to the provincial
treasurer or municipal mayor

f. The owner or his representative shall have a

right to the delivery of the vessel or things
saved after the salvage is accomplished,
provided that he pays, or gives a bond to
secure the expenses and the proper reward.

The amount and sufficiency of collector of

customs or by the judge of the RTC of the
province where the things saved may be

g. If the owner does not make any claim within

3 months after the publication by the
authorities of a salvage report, the things
saved shall be sold at a public auction, the
proceeds of which shall be deposited in the
national treasury after deducting the
expenses and the proper reward to which
the salvor is entitled.

If three years lapses without any claim

thereon, the salvor shall be entitled to half of
the deposit as his reward and the other half
shall pertain to the government.

h. The owner of the salving vessel is also

entitled to the salvage reward for the use of
his vessel in rendering salvage services
eventhough he may not have been present
at the time the salvage service was rendered.

Remuneration for salvage service is awarded

to the owners of the salving vessel on
account of the danger to which the service
exposes their property, and the risk which
they run of loss in suffering their vessels
engaged in such perilous undertaking.