Why You Can Legally Steal From a Sinking Ship

Summary

In 1994, a NASA fuel tank cargo faced danger off Florida's coast when a tugboat lost power during a tropical storm. After being abandoned, the cargo was rescued by the crew of an oil tanker, triggering an ancient maritime law called 'pure salvage.' This legal principle allowed the crew to claim a percentage of the cargo's value. The crew successfully salvaged the cargo, securing $6.4 million. The video explores the fascinating world of maritime law, highlighting how obscure regulations and real-world events can lead to significant rewards.

Takeaways

• 😀 NASA's ET-70 fuel tank was being transported from New Orleans to Cape Canaveral when it got caught in a tropical storm.
• 😀 The tugboat, J.A. Orgeron, lost power, causing the barge with the fuel tank to drift further into the sea.
• 😀 The local Coast Guard was too busy with the storm to help, leading to the decision to abandon the barge.
• 😀 Due to obscure maritime laws, anyone who successfully rescues the barge could legally claim a percentage of its cargo.
• 😀 'Pure salvage' laws, dating back to the Byzantine Empire, allow rescuers to claim part of a ship's cargo if they voluntarily save it from real peril.
• 😀 Modern salvage operations typically involve 'contract salvage', where dedicated firms are hired to recover a ship or cargo.
• 😀 Pure salvage requires three conditions: real peril, voluntary service, and success in saving the cargo.
• 😀 The Cherry Valley oil tanker captain volunteered to help, fulfilling the criteria for a pure salvage claim.
• 😀 After successfully rescuing the tugboat and barge, the Cherry Valley crew took the case to court and won a 6.4 million-dollar salvage award.
• 😀 Pure salvage is rare due to the 'no cure, no pay' rule, where salvors must succeed to receive payment, making the process risky for large firms.

Q & A

What was the initial problem the tugboat faced during the transport of the ET-70 fuel tank?

The tugboat lost power while transporting the ET-70 fuel tank, and the barge, with its fuel tank hangar acting as a sail, started dragging it further out to sea.

Why couldn’t the Coast Guard assist in the situation immediately?

The local Coast Guard was too busy handling the tropical storm and couldn’t provide immediate help.

What drastic measure did the tugboat crew take to save themselves?

The tugboat crew had to cut the barge loose, abandoning its millions of dollars worth of cargo in order to survive.

What ancient maritime law became relevant in this situation?

An obscure maritime law allowed the first person to drag the barge back to shore to legally claim a percentage of its cargo, known as 'pure salvage.'

What is the principle of 'pure salvage' in maritime law?

Pure salvage is a legal principle where a person who voluntarily rescues a ship or cargo in peril can claim a percentage of its value as a reward, even without a prior contract.

How does 'contract salvage' differ from 'pure salvage'?

'Contract salvage' involves a pre-arranged agreement between the ship owner and a salvage firm, while 'pure salvage' occurs when a ship is rescued without a contract, and the rescuer claims a reward based on the danger and success of the salvage.

What is required for a successful 'pure salvage' claim?

Three conditions must be met: 1) Real peril, meaning the cargo was actually in danger, 2) Voluntary service, where the rescuer willingly helps without any contractual obligation, and 3) Success, meaning the rescue must be completed successfully for the rescuer to claim a reward.

Why are pure salvage claims relatively rare today?

Pure salvage claims are rare because they are based on a 'no cure, no pay' principle, meaning if the rescuer doesn’t succeed in saving the cargo, they receive no reward. This makes it a risky and often impractical choice for professional salvage firms.

How did the crew of the Cherry Valley qualify for a pure salvage claim?

The crew of the Cherry Valley met the three criteria for pure salvage: they voluntarily rescued the barge and tugboat, they proved the cargo was in real peril, and they successfully brought the cargo back to shore.

What was the outcome of the Cherry Valley crew’s salvage claim?

The crew of the Cherry Valley took their case to court and were awarded $6.4 million, which was an eighth of the value of the barge and its cargo.