Commissioners for Lord High Admiral of the United Kingdom v Owners of MV
“Valverda”    Shipping – Salvage – His Majesty’s Ships – Special agreement – Merchant Shipping Act
1894 (c 60) s 557 – Merchant Shipping (Salvage) Act 1916 (c 41) s 1.
The “Valverda” was disabled and certain Admiralty vessels went to her assistance. As soon
as the casualty was reported to the owners of the “Valverda,” they entered voluntarily into a
salvage agreement with the Admiralty. No distinction was made between the ships taking part
in the salvage, of which some were specially equipped for salvage within the Merchant
Shipping (Salvage) Act 1916, s 1, and others were not. At the arbitration held under the
salvage agreement to fix the remuneration payable to the Admiralty, the arbitrator decided
that by virtue of the salvage agreement, the Admiralty were entitled to remuneration in
respect of all the ships which had assisted in the salvage, and he took into account the
services rendered both by the personnel and by the ships themselves. The owners contended
(i) that the services rendered by the ships themselves ought not to be taken into account, and
(ii) that by reason of the Merchant Shipping Act 1894, s 557(1), the Admiralty were not
entitled to remuneration in respect of those ships which were not specially equipped for
salvage and that as a matter of public policy no agreement for such remuneration was
allowable:—