SMIT Salvage BV & Ors v Luster Maritime SA & Anor [2023] EWHC 697 (Admlty) (30 March 2023)

SMIT Salvage BV & Ors v Luster Maritime SA & Anor [2023] EWHC 697 (Admlty) (30 March 2023)

The parties' exchanges and conduct did not unambiguously convey an intention to be bound by the agreed remuneration terms; instead, they indicated ongoing negotiations with intent to be bound only upon agreement of detailed contract terms. No binding contract was concluded on 26 March 2021, and claimants are not...

Source-derived case information.

Citation
[2023] EWHC 697 (Admlty)
Parties
Claimant: SMIT SALVAGE B. V.; Claimant: BAGGERMAATSCHAPPIJ BOSKALIS B. V.; Claimant: OCEAN MARINE EGYPT S. A. E.; Claimant: AUGUSTEA SHIP MANAGEMENT SRL; Defendant: LUSTER MARITIME S. A.; Defendant: HIGAKI SANGYO KAISHA LIMITED
Jurisdiction
England and Wales
Judgment Date
30 March 2023
Procedural Posture
Salvage Claim / Trial of Preliminary Issue (existence of Contract)
Outcome
No binding contract concluded; claimants not precluded from salvage claim.
Legal Topics
Salvage, Contract Formation, Intention to Be Bound, Remuneration Terms
Maritime Law Contract Law Salvage Contract Formation Intention to Be Bound Remuneration Terms

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Parties

SMIT SALVAGE B. V.

Claimant

BAGGERMAATSCHAPPIJ BOSKALIS B. V.

Claimant

OCEAN MARINE EGYPT S. A. E.

Claimant

AUGUSTEA SHIP MANAGEMENT SRL

Claimant

LUSTER MARITIME S. A.

Defendant

HIGAKI SANGYO KAISHA LIMITED

Defendant

Procedural Posture

Salvage Claim / Trial of Preliminary Issue (existence of Contract)

Legal Issues

  1. 1 Whether a binding contract for salvage services was concluded on 26 March 2021
  2. 2 Whether claimants are entitled to salvage under the International Convention on Salvage 1989 or at common law

Ratio Decidendi

The parties' exchanges and conduct did not unambiguously convey an intention to be bound by the agreed remuneration terms; instead, they indicated ongoing negotiations with intent to be bound only upon agreement of detailed contract terms. No binding contract was concluded on 26 March 2021, and claimants are not precluded from pursuing a salvage claim.

Court Disposition

No binding contract concluded; claimants not precluded from salvage claim.

Orders

  • Claimants entitled to pursue salvage claim under International Convention on Salvage 1989 and/or at common law.
  • Defendants' contractual defence dismissed.