ABSTRACT

The SCOPIC clause As a result of discontent by salvors at the calculation of Art 14 remuneration after The Nagasaki Spirit , in 1999 a new clause was drafted to give salvors an alternative basis of remuneration. The clause was the Special Compensation P & I Club Clause (the SCOPIC clause) and although its provisions only affect the relationship between the salvor and the shipowner the International Group of P & I Clubs have agreed a code of conduct giving their backing to the clause whenever a ship entered with the International Group is salved by a member of the International Salvage Union (the ‘ISU’). The salient features of the clause, which received clarificatory amendment in 2000, are as follows:

• For the clause to operate it needs to be specifically incorporated into an LOF contract, of whatever form. LOF 2000 contains a box to be ticked if the parties agree to the incorporation of the SCOPIC clause. If the clause is incorporated it then needs to be invoked by salvor.64 This can be done even if there is no threat to the environment. Invoking the clause completely replaces the right of the salvor to claim under Art 14, even in respect of services performed before the invocation of the clause.65 The provisions of Art 14(5) and (6), however, continue to remain effective. Within two days of the clause being invoked, cl 3 obliges the shipowner to put up security for the salvor’s claim under the clause in the amount of US$3,000,000. If the shipowner fails to do so, cl 4 entitles the salvor to withdraw from the SCOPIC clause, provided the security is still outstanding at the date of withdrawal.