International

To coincide with the coming into force on 1 January 1995 of the International Salvage Convention 1989 by reason of the Merchant Shipping (Salvage and Pollution) Act 1994, the LOF 90 was updated and replaced by LOF 95. The 1994 Act has been repealed by the Merchant Shipping Act 1995. Then, in 1997, the Lloyd’s Form Working Party, comprising representatives of all sections of the industry, began working on a new version of Lloyd’s Open Form, with a view to producing a simpler, more concise document. The intention being to produce a new version of LOF, to be named LOF 2000, (see Appendix 7:2) which would only contain those provisions which relate to the services themselves and the rights and obligations of the parties. Provisions relating to procedural and administrative matters being contained in a set of standard clauses to be incorporated into the contract by reference. As such, the changes are cosmetic rather than substantive. A final draft of the LOF 2000 contract, limited to a single sheet, double-sided document, was duly produced. The subordinate provisions being contained in the Lloyds Standard Salvage and Arbitration (LSSA) Clauses and Lloyd’s Procedural Rules. SCOPIC was introduced on 1st August 1999.  It was intended to be used in conjunction with Lloyd’s Open Form of Salvage Agreement “No Cure – No Pay” LOF 1995.  Article 14 of the 1989 Salvage Convention (“Article 14”) provided that salvors (“Contractors”) could receive Special Compensation (i.e. their expenses and a fair rate for tugs and equipment used in salvage operations) in certain circumstances where the salved fund was insufficient to allow them to recover adequate remuneration under Article 13 of the Salvage Convention 1989 (“Article 13”).  The SCOPIC clause endorsed this concept but introduced a tariff to calculate the Contractor’s Special Compensation together with an uplift fixed at 25%.  Traditional Article 13 Awards will be discounted by 25% of the amount by which any Article 13 Award exceeds the SCOPIC remuneration.