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Sea Tow Salvage Agreement

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Voyager
Master Marine Consultant

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USA
5389 Posts

Initially Posted - 09/06/2009 : 18:06:26

At my marina, I'm on an 80 foot "tee end" slip which I share with a 54 foot ketch. A very wonderful couple own it and it has been sitting on the dock most of the summer as he was repairing the windows and finishing the interior wood. They have a house, but during the summer months, they mostly live aboard. It's nice to have someone keeping an eye on things.

Their son was home from college, and they took a sail to show him around and to enjoy one another's company. The son is a sailor in his own right, starting with Optis and Dinghies.

So as they entered Branford CT harbor (which is more rock than water), their son was steering and for one reason or another, crack, right into a submerged piece of granite. My buddy was coaching him reading the chart plotter, but somehow that piece of rock must have up and moved or something.

So, the boat was taking on water and the keel was a little off. They called Sea Tow with whom they've had an account for quite some time. The couple stopped the leaks and the pumps came on, so there was no problem there, and a Brewers 'sister marina' was right up in the harbor where they needed to get towed to effect the repairs.

Sea Tow handed my buddy the sign off sheet, and lo, it was a salvage agreement, not just a simple tow. Without even reading it, he was so nervous he just signed it. Classic gotcha.

So now they are trying to get their insurance to pay for repairs on a boat that they more or less no longer own!

And they're trying to get their lawyer to make SeaTow quit the claim, but no dice. They swiped the boat fair and square.

At this point, all they can really do to get the boat back is pay off Sea Tow for the lien so they can proceed with repairs.

Is this a completely whack-job turn of events? How can this be? Is there any way they can "swipe it back?"

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

Edited by - on

delliottg
Former Mainsheet C250 Tech Editor

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USA
4479 Posts

Response Posted - 09/06/2009 : 18:27:16

Has Sea Tow attached a lien for the entire value of the boat? I don't know much about salvage law, but this seems like a bait & switch type of tactic. They show up under the pretense of helping per the contract already in place, then switch the form to an Open Form to take possession of the boat. It would seem like that wouldn't hold up all that well in a court room, but maritime laws are funny. I'm going to be interested to see how this turns out.

Edited by - on

Ed Cassidy
Captain

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USA
365 Posts

Response Posted - 09/06/2009 : 18:30:05

I didn't think that was how 'salvage' worked. SeaTow should be paid an amount that takes into account their risk for engaging in the recovery but in this case they didn't appear to do any more than the previously agreed upon tow. It doesn't sound like they did anything to warrant anything but the prepaid towing. At any rate, where there is no clear agreement as to cost, arbitration usually takes over.

Edited by - on

Steve Milby
Past Commodore

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USA
5904 Posts

Response Posted - 09/07/2009 : 08:49:59

My understanding is that, when they arrive on the scene, towing companies assess whether the job is an ordinary tow, or whether it's a salvage, i.e. whether the boat is in danger of being totally lost. If the latter, then it's a salvage job, in which case they invoke the laws of salvage, which entitle them to more than just the towing fee. They can demand to be paid a percentage of the value of the boat. Essentially they have you over a barrel. If you don't want to pay the salvage fee, they'll let the boat sink. I don't know, but would think it would be up to the insurance company to fight it out with the salvage company. If the insurance company doesn't want to pay the salvage, then they'll have to declare the boat a total loss and pay the owner accordingly.

Edited by - on

redviking
Master Marine Consultant

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USA
1771 Posts

Response Posted - 09/07/2009 : 09:02:08

It is the Captains responsibility to determine if it is a Tow or a Salvage before SeaTow or whomever begins - it is too late after the document has been signed and the vessel towed. It sounds like a salvage to me.

sten

Edited by - on

Dave Bristle
Master Marine Consultant

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Djibouti
10005 Posts

Response Posted - 09/07/2009 : 10:27:59

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by redviking
 It sounds like a salvage to me.<hr height="1" noshade id="quote"></blockquote id="quote">...and maybe time to change towing companies. I haven't heard of this kind of shenanigans from TowboatUS. Hope I'm right.

Edited by - on

Ed Cassidy
Captain

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USA
365 Posts

Response Posted - 09/07/2009 : 12:02:32

Some info from;
http://www.mikkelborg.com/files/salvage.pdf

C. Calculation of the Salvage Award.
The court or an arbitrator normally determines the proper award for a salvage service. The criteria are:
1. The time and labor expended by the salvors in rendering the salvage service;
2. The promptitude, skill, and energy displayed in rendering the service in saving the property;
3. The value of the property at risk or employed the salvor, and the degree of danger to which this
property was exposed;
4. The value of the property saved; and
5. The degree of danger from which lives and property are rescued.
The BLACKWALL, 77 U.S. (10 Wall.) 1, 14 (1869); Osal Marine Services, Inc. v. M/V PANASEA, 1993
file:///C|/Documents%20and%20Settings/Peter%20Boyd/Desktop/New%20Folder/salvage%20(1).htm (2 of 6)8/2/2004 2:23:19 PM
The Law of Salvage - by Newell D. Smith
AMC 1930, 1932 (W.D. Wash. 1992); Sobonis v. Steam Tanker NATIONAL DEFENDER, 298 F. Supp.
631 (S.D.N.Y. 1969); Schoenbaum at 508.
The purpose of the award is not to provide unreasonable windfalls, but to encourage seamen and others
to incur risks to go to the aid of vessels in distress. The salvage award cannot exceed the value of the
property saved.
D. Contract Salvage.
The law distinguishes instances of "pure" salvage (where the salvor is a volunteer), where there is no preexisting
agreement between the parties, from contract salvage where the salvor acts to save the maritime
property after entering into an agreement to use "best endeavors" to do so for a fixed fee, payment
according to a schedule, or payment to be fixed by arbitration. In high seas salvage, the Lloyds' Open
Form (LOF) 1980 is generally accepted and provides for arbitration.(1) Locally, professional salvage
companies have drafted their own contracts.
If a contract sets out onerous and over-reaching terms and was entered into while the vessel was in
extreme distress, the courts will give the contract close scrutiny and may set aside the contract if the
compensation is exorbitant or if the salvor took unfair advantage or was guilty of fraud. Osal, supra; see
The ELFRIDA, 172 U.S. 186 (1898); Schoenbaum at p. 511. However, if the contract was fairly
bargained for, the court will usually enforce its terms. Id.
Issues of contract salvage have become more prevalent in recent years because the Coast Guard has to
some extent abdicated its traditional function of providing rescue services. The Coast Guard's policy
now is to try to find either a volunteer or commercial salvor to provide rescue services where life is not
in danger. As a result, several small salvage and towage companies have come into existence. Though
most of them are fair and provide an essential service, there have been examples of over-reaching. See
Osal, supra. A well-informed shipowner or master is advised to closely scrutinize any contracts handed
him by a professional salvor and if the contract is at all unacceptable, he or she should try to get the
salvor to instead agree to a later arbitration of a fair award.

Edited by - on

Dave5041
Former Mainsheet Editor

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USA
3758 Posts

Response Posted - 09/07/2009 : 13:29:28

Sea Tow is also tied to Boat/US in some areas, so it might be worth checking.

Edited by - on

jerlim
Master Marine Consultant

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USA
1484 Posts

Response Posted - 09/08/2009 : 16:06:08

bastardos...

Edited by - on

Voyager
Master Marine Consultant

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USA
5389 Posts

Response Posted - 09/08/2009 : 18:53:49

While I have no further info, I will stay close to the eventualities due to my proximity to it. Meanwhile, I posted this note only to point out that whenever we make arrangements with Towing services, and we use those services, we have to be crystal clear what the actions of the Tow company mean, as well as our own actions, during the actual incident.

For example, if we run out of gas, many towing services will provide a certain amount of gas to get you back to the gas dock. If the engine fails, then you would get a simple tow, UNLESS by having a failed engine that the boat was adrift and in danger of crashing on the nearby rocks. Then the tow boat potentially becomes a salvor.

If you remain on your boat and there is no risk of loss of property or life, again, its a pretty pedestrian situation. But, if the captain leaves the vessel, or takes a ride on the towing boat, it could be construed an abandoned vessel.

Your best bet is to ask a zillion questions about it, and if you are not satisfied with the answers, drop an anchor, take the next day off from work and somehow get things back under control.

If you are in an emergency situation where life and property are truly at risk, be mindful of your every decision, and be prepared to get salvaged.

As Jerry says, bastardos!

Edited by - on

DaveR
Master Marine Consultant

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USA
2015 Posts

Response Posted - 09/09/2009 : 05:25:52

I'm sure I'm just being simple minded but it seems as though these companies hired and prepaid for simple assistance in whatever situation would we held liable if they refused to offer it without holding your boat as hostage. I suppose there's a clause in the fine print ........... Bastardos!

Edited by - on

Ed Cassidy
Captain

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USA
365 Posts

Response Posted - 09/09/2009 : 05:51:06

A couple thinks that haven't been disclosed are why was a tow needed? Had the engine failed and why and did they need to put their pumps in the boat to remove the water? Did the owner rescue himself by stopping the flow of water? Just curious.

Edited by - on

redviking
Master Marine Consultant

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USA
1771 Posts

Response Posted - 09/09/2009 : 05:53:40

I'm willing to bet the owner was completely honest in describing the situation which led to the Salvage Agreement coming out... I am NOT a fan of SeaTow as some of you may recall from my Charleston experience. It does seem as if SeaTow is more aggressive in certain markets. I have posted before my discussions with Captains for both companies and the substantive difference between the two is that TowBoat US operators get paid for every trip from the general fund, while SeaTow does not. Salvage is a big part of why towing services exist in the first place. Had SeaTow just towed the stricken vessel in, they wouldn't have made anything. I'll bet that if this was discussed upfront - the member could have negotiated the tow down to $500 or a grand. Bastardos!

sten

Edited by - on

redviking
Master Marine Consultant

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USA
1771 Posts

Response Posted - 09/09/2009 : 05:59:29

This reminds me of a story I once ead wherein a woman, soloing in the tropics, fell overboard while her yacht continued on its course. She managed to flag down some fishermen and convinced them to chase after her vessel. As soon as they approached her boat, she vigorously pushed the fishermen back as she climbed aboard. She quickly grabbed some cash, but did not allow the fishermen to tie up nor board and she left her boat on autopilot during the brief transaction. I was amazed that after her experience that she had thepresense of mind to avoid the salvage claim.

sten

Edited by - on

Steve Milby
Past Commodore

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USA
5904 Posts

Response Posted - 09/09/2009 : 07:03:00

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by DaveR
 I'm sure I'm just being simple minded but it seems as though these companies hired and prepaid for simple assistance in whatever situation would we held liable if they refused to offer it without holding your boat as hostage. I suppose there's a clause in the fine print ........... Bastardos!
<hr height="1" noshade id="quote"></blockquote id="quote">Dave, believe it or not, the law generally provides that a good samaritan, who sees an injured person on the side of the road, is under no legal obligation to render aid. In my home town, firemen were on strike. They were called to the scene of a fire, and they checked the house to assure that no lives were in danger, and then they stood by and refused to fight the fire, letting the house burn. The owner sued them, and the court ruled, in accordance with almost universal law, that the firemen were not legally liable. (They only had to answer to their consciences.)

IMHO, if the boat owner had a contract with Sea Tow, then Sea Tow had a legal obligation to respond and to tow the boat, but, if the boat was sinking, they had no obligation to take any action to prevent the boat from sinking, unless they were paid for the skill and risk that it would entail. The contract gave sea Tow a legal duty to tow the boat, but not a legal duty to salvage it.

Edited by - on

Dave Bristle
Master Marine Consultant

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Djibouti
10005 Posts

Response Posted - 09/09/2009 : 08:00:42

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by Steve Milby
 ...The contract gave sea Tow a legal duty to tow the boat, but not a legal duty to salvage it.<hr height="1" noshade id="quote"></blockquote id="quote">...and according to Bruce's story, the boat was not sinking... <blockquote id="quote">quote:<hr height="1" noshade id="quote">The couple stopped the leaks and the pumps came on, so there was no problem there, and a Brewers 'sister marina' was right up in the harbor where they needed to get towed to effect the repairs.<hr height="1" noshade id="quote"></blockquote id="quote">However, Bruce didn't say why the 54' ketch couldn't motor on back to the marina. I suppose if the keel was "a little off", that could have bent the prop shaft or something... If they were still hard aground when Sea Tow arrived, and there was any risk from maneuvering around the rocks, then everything changes.

Edited by - on

Steve Blackburn
Master Marine Consultant

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Canada
1091 Posts

Response Posted - 09/09/2009 : 10:24:14

This maritime salvage law just amazes me (scares me really). Sounds like a good business for crooks to be in. What I don't get is that there doesn't seem to be any relationship with the price of the vessel. As an extreme example imagine if a couple buys a brand new $800K boat take it out for a spin and hit a rock. Being new to "boating" they are extremely vulnerable to any lies the "salvager" can tell them. So the couple in a panic signs the salvaging agreement and they just lost $800K?

Sounds like the law stipulates that if the vessel is deemed to be a goner if the "salvagers" wouldn't have intervened that they are allowed to keep the vessel? I keep hearing about horror story scenarios like the one Sten portrayed (woman going overboard) and then the simple one where a guy is out of fuel (and wind) so a "good Samaritan" offers a tow and that constitutes a salvage?

I can't believe it’s so easy for crooks to just standby and make huge fortunes like this. Especially when the vessel is close to civilization. In fact I think that the missunderstanding of the salvage law can lead to dangerous situations where simple help could be refused being scared of loosing one's boat.

Edited by - Steve Blackburn on 09/09/2009 10:32:19

HeelinPatrick
Navigator

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USA
102 Posts

Response Posted - 09/09/2009 : 10:58:59

I was upset reading the thread at first, but now seems that a tow must be for something that definitely deserves only a tow, and that the tow is you being lazy, rather than really needing it. What happens if you engine dies, and it's a little too tricky to sail it to the dock? Sounds like a great reason for a tow, but hopefully not a salvage.

Edited by - on

Steve Blackburn
Master Marine Consultant

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Canada
1091 Posts

Response Posted - 09/09/2009 : 11:36:11

That's a good point. In the above story the boat was not sinking but was incapacitated. So lets say all you suffer is an engine failure and cannot safely get to port 1 mile out. It is reasonable to consider that without a tow the boat could have run aground because of the currents. It just happens to be that you have no means of communication. So a passerby offers a tow but at the condition that this is a salvage. Obviously you refuse not wanting to loose your $500K boat. So the guy leaves you stranded and does not help in any way (does not call a tow service). He sticks around for the entertainment and sees you run aground 1 hour later totaling the boat.

Legally speaking wouldn't you have recourse against that guy? Aren't we forced to help (at least send out a radio call to the authorities) even if the present situation isn't life threatening (because it can become life threatning eventualy)?

Edited by - on

Voyager
Master Marine Consultant

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USA
5389 Posts

Response Posted - 09/09/2009 : 19:08:35

I got a little more info on the situation - the boat landed on Dick Rocks just off the SE of the Thimble Islands in Branford CT. It is clearly marked on the charts, and there is a red buoy beside the rocks in question. They almost had to climb over the buoy to hit the rocks.

Apparently, the boat rode up on top of the rocks and got stuck, the keel was partially dislodged and water came in. They plugged the leaks and pumped out, so they weren't sinking, but they also could not move - at least at that moment.

Tides run approx 6.5 feet in this area, with extremes of 8 feet, so eventually it is conceivable that they could have gotten the boat off the rocks.

The tow boat had to work the boat off the rocks at the time. Lots of leveraging and lots of pulling and yanking the 54 footer was needed to pull the boat off the rocks.

So the boat, at least at that point in time, was incapacitated.

Edited by - on

Dave Bristle
Master Marine Consultant

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Djibouti
10005 Posts

Response Posted - 09/09/2009 : 19:34:23

Hmmm... A "hard grounding" in a rocky area, and I think you have to suspect that pulling that hulk off the rocks could have created new leaks or opened the existing ones... I suspect the Sea Tow member contract covers "soft groundings" which means no significant damage to the boat, and a simple pull frees it. Hate to say it, but this was apparently something else. We should be aware of what our membership contract says, and not sign something else when we haven't even read its title.

Edited by - on

GaryB
Master Marine Consultant

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4306 Posts

Response Posted - 09/09/2009 : 20:25:31

Edited by - on

Steve Milby
Past Commodore

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5904 Posts

Response Posted - 09/10/2009 : 07:10:27

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by Steve Blackburn
 Legally speaking wouldn't you have recourse against that guy? Aren't we forced to help (at least send out a radio call to the authorities) even if the present situation isn't life threatening (because it can become life threatning eventualy)?
<hr height="1" noshade id="quote"></blockquote id="quote">The law imposes a limited duty on bystanders to attempt to save the life of a person in danger, but not to attempt to save his boat.

However, if you attempt to save his life, you are legally obligated to use reasonable care and skill under the circumstances. If you try to save him, and negligently run him down and chop him up with your prop, you can be sued by him or his heirs for damages.

In short, you have a duty to help a person in peril on the sea, but you also have a duty not to cause him harm through your negligence.

There is legal risk to the good samaritan who decides to help, and some people would shun the risk by sailing away, but I think, for most of us, our consciences wouldn't permit us to do so.

Edited by - on

PCP777
Master Marine Consultant

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USA
1225 Posts

Response Posted - 09/10/2009 : 09:08:45

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by Steve Milby
 <blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by Steve Blackburn
 Legally speaking wouldn't you have recourse against that guy? Aren't we forced to help (at least send out a radio call to the authorities) even if the present situation isn't life threatening (because it can become life threatning eventualy)?
<hr height="1" noshade id="quote"></blockquote id="quote">The law imposes a limited duty on bystanders to attempt to save the life of a person in danger, but not to attempt to save his boat.

However, if you attempt to save his life, you are legally obligated to use reasonable care and skill under the circumstances. If you try to save him, and negligently run him down and chop him up with your prop, you can be sued by him or his heirs for damages.

In short, you have a duty to help a person in peril on the sea, but you also have a duty not to cause him harm through your negligence.

There is legal risk to the good samaritan who decides to help, and some people would shun the risk by sailing away, but I think, for most of us, our consciences wouldn't permit us to do so.
<hr height="1" noshade id="quote"></blockquote id="quote">

Too bad people can't just help people out. Saturday night I was on my boat when a guy came walking up the dock asking for help. His engine had quit on his power boat and he had drifted into the rocks by the shore. So my friend Jesse and I , who has a Sea Ray across the dock from me, pulled his boat out and we rescued the stricken power boat and towed it back to his slip.

It never occurred to us to invoke salvage rights or even ask for any kind of payment. It's just how we do it in Texas.

Y'all Yankees are hard core.

Edited by - on

redviking
Master Marine Consultant

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USA
1771 Posts

Response Posted - 09/10/2009 : 10:13:36

Just remember, if a good Sam offers a tow, throw him/her YOUR line! Accepting theirs constitutes salvage.

sten

Edited by - on

Steve Blackburn
Master Marine Consultant

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Canada
1091 Posts

Response Posted - 09/10/2009 : 12:29:39

I wonder if this is an issue at all because I cannot google a good example of someone who got litteraly conned by a salvager and lost their boat.

Got me thinking to a new "what if" scenario. What if you would beach your 40 foot sailboat then during that week while in the process of organizing a rescue some salvager comes and snags it? Can we just put a sign on it explaining that we are picking up later?

Edited by - on

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