SCOPIC
If the salvor has carried out salvage operations in respect of a vessel which by itself or its cargo threatened damage to the environment, have failed to earn a reward at least equivalent to the special compensation assessable under the Convention (because, for example, of the low values of the vessel and/or cargo salved), the salvor will be entitled to special compensation.
SCOPIC Reward
.This reward is from the vessel’s owner .
.The expenses should be reasonably incurred in the salvage operation and a fair rate for equipment and personnel actually and reasonably used.
.(“Damage to the environment” is defined as “substantial physical damage to human health or
.to marine life or resources in
.coastal or to marine life or resources in coastal or inland waters or areas adjacent thereto, caused by pollution,
.contamination, fire, explosion or similar major incidents”.)
Percentage of salvage
.If, in the above circumstances, the salvor has prevented or minimised damage to the environment, the special compensation payable by the owner may be increased up to a maximum of 30% of the salvor’s expenses (i.e. it may be 130% of his expenses) (article 14.2). However, the tribunal, if it deems it fair and just to do so, and bearing in mind the relevant criteria for fixing the reward, may increase the special compensation up to a maximum of 100% of the salvor’s expenses (i.e. the salvor may recover between 130% and 200% of his expenses).
.The total special compensation under article 14 will be paid only if and to the extent that it exceeds any reward recoverable by the salvor under article 13 (article 14.4).
.* If the salvor has been negligent and has thereby failed to prevent or minimise damage to the environment, he may be deprived of all or part of his special compensation (article 14.5).
Calculation
.Calculation of special compensation in accordance with the provisions of Article 14 threw up some legal difficulties, resulting in salvors, P&I clubs and hull insurers devising a more “user-friendly” method of calculation, i.e. the “Scopic” Clause.
LOF and SCOPIC
.The Special Compensation P&I Clause, known as the “Scopic Clause” –
.-is supplementary to any Lloyd’s Open Form Salvage Agreement “No Cure –No Pay” which incorporates the provisions of Article 14 of the International Convention on Salvage 1989.
.-was introduced into LOF agreements for reasons outlined in
.-as used with LOF 2000 is known as “Scopic 2000”.
.may be invoked at the option of the salvage contractor by written notice on the owners of the vessel being salvaged. (The Scopic Clause is not incorporated into the LOF agreement unless expressly invoked in accordance with the provisions of the Clause.)
.-determines the method of assessing special compensation where payable under Article 14(1) to 14(4) of the
.Convention. Special compensation assessed in accordance with the Scopic Clause is called “Scopic remuneration”
SCR
.does not change the “no cure –no pay” principle as applying to the salvage award, since that it separate from special compensation.
.-allows the vessel owners, once the Clause has been invoked, to appoint at their sole option a Shipowner’s Casualty Representative (“SCR”) to attend the salvage operation
Scopic remuneration
-is payable only by the owners of the vessel (and not by the cargo owners) and is only payable to the extent that it exceeds the total Article 13 award (the salvage award) or, if none, any potential Article 13 award. Where the owner of the vessel is a member of a P&I club, the club will normally pay the special compensation (hence the interest and involvement of the P&I clubs in drafting the Scopic Clause).
.-is not a General Average expense (unlike the salvage award).
-is assessed on the basis of a tariff of rates for personnel, tugs and other craft, portable salvage equipment, out of-pocket expenses, and bonus due. The tariff forms Appendix A to the Scopic Clause. (The salvage services under the main agreement continue to be assessed in accordance with Article 13 of the Convention ).
