SMIT Salvage BV & Ors v Luster Maritime SA & Anor (MV Ever Given - Salvage Claim) [2024] EWCA Civ 260 (19 March 2024)

SMIT Salvage BV & Ors v Luster Maritime SA & Anor (MV Ever Given - Salvage Claim) [2024] EWCA Civ 260 (19 March 2024)

No binding contract was concluded between the parties as to remuneration for salvage services, as the parties did not objectively intend to be legally bound until all essential terms were agreed. The exchange of emails on 26 March 2021 only settled remuneration terms, leaving other key matters unresolved and subject to further negotiation. Therefore, the salvors are not precluded from bringing a salvage claim.

Citation
[2024] EWCA Civ 260
Parties
Respondent/claimant: SMIT Salvage B.V.; Respondent/claimant: Baggermaatschappij Boskalis B.V.; Respondent/claimant: Ocean Marine Egypt S.A.E.; Respondent/claimant: Augustea Ship Management SRL; Appellant/defendant: Luster Maritime S.A.; Appellant/defendant: Higaki Sangyo Kaisha Limited
Jurisdiction
England and Wales
Judgment Date
19 March 2024
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (admiralty Court)
Outcome
Appeal dismissed
Legal Topics
Formation of Contract, Salvage Claims, Remuneration Agreements, Intention to Create Legal Relations, Admiralty Jurisdiction
Contract Law Maritime Law Formation of Contract Salvage Claims Remuneration Agreements Intention to Create Legal Relations Admiralty Jurisdiction

Case Brief

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Parties

SMIT Salvage B.V.

Respondent/claimant

Baggermaatschappij Boskalis B.V.

Respondent/claimant

Ocean Marine Egypt S.A.E.

Respondent/claimant

Augustea Ship Management SRL

Respondent/claimant

Luster Maritime S.A.

Appellant/defendant

Higaki Sangyo Kaisha Limited

Appellant/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (admiralty Court)

Legal Issues

  1. 1 Whether a binding contract was concluded as to remuneration for salvage services for the Ever Given grounding
  2. 2 Whether such a contract precluded a salvage claim under the International Convention on Salvage 1989 or at common law

Ratio Decidendi

No binding contract was concluded between the parties as to remuneration for salvage services, as the parties did not objectively intend to be legally bound until all essential terms were agreed. The exchange of emails on 26 March 2021 only settled remuneration terms, leaving other key matters unresolved and subject to further negotiation. Therefore, the salvors are not precluded from bringing a salvage claim.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the decision of the Admiralty judge stands.