THE "VALVERDA."

(1937) 59 L1.L.Rep. 231

HOUSE OF LORDS.

Before Lord Atkin, Lord Russell of Killowen, Lord Wright, Lord Maugham and Lord Roche.

Salvage-His Majesty's ships as salvors-Services rendered by his Majesty's ships Frobisher (cruiser), Guardian (cruiser), Sandboy (tug), Creole (yard craft) and Orangeleaf (fleet auxiliary) to motor vessel Valverda in Atlantic-Vessel towed 900 miles to Bermuda-Admiralty Form of Salvage Agreement entered into between Admiralty and owners of Valverda-Salvage services admitted-Award-Case stated-Question for opinion of Court: "Whether . . . the Admiralty are entitled in law to salvage remuneration in respect of the services of H.M.S. Frobisher, H.M.S. Guardian and R.F.A. Orangeleaf" -Merchant Shipping Act, 1894, Sect. 557 (1): "Where salvage services are rendered by any ship belonging to Her Majesty or by the commander or crew thereof, no claim shall be allowed for any loss, damage, or risk caused to the ship or her stores, tackle, or furniture, or for the use of any stores or other articles belonging to Her Majesty, supplied in order to effect those services, or for any other expense or loss sustained by Her Majesty by reason of that service, and no claim for salvage services by the commander or crew, or part of the crew of any of Her Majesty's ships shall be finally adjudicated upon, unless the consent of the Admiralty to the prosecution of that claim is proved"-Contentions by Admiralty: (a) that the operation of Sect. 557 (1) was excluded and superseded by the salvage agreement; (b) that the agreement in question was not a salvage agreement in that provision was made for remuneration in the event of non-success; (c) that Sect. 557 (1) did not exclude every claim to salvage remuneration, as, for example, the use of the salving vessel-Merchant Shipping (Salvage) Act, 1916, Sect. 1.