Reply #13: According to the Admiralty Law class I took in law school, the salvors should get 50% [View All]

First of all, as detailed in the article cited in the OP, the salvage company had contracted with the Columbian government to get 50% of any treasure found. International relations would go to hell in a hand basket if countries were allowed to void all international contracts every time a new president/prime minister came into office. That is precisely what Columbia is attempting to do in this case.

"Harbeston claims he and a group of 100 U.S. investors . . . have invested more than $12 million since a deal was signed with Colombia in 1979 giving Sea Search exclusive rights to search for the San Jose and 50 percent of whatever they find.

But all that changed in 1984, when then-Colombian President Belisario Betancur signed a decree reducing Sea Search's share from 50 percent to a 5 percent "finder's fee."

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There are two types of salvage: contract salvage and pure (sometimes called "merit") salvage. In contract salvage the owner of the property and salvor enter into a salvage contract prior to the commencement of salvage operations and the amount that the salvor is paid is determined by the contract. This is what happened between the Salvage group & the govt. of Columbia. The most common salvage contract is called a "Lloyds Open Form Salvage Contract."

In pure salvage, there is NO contract between the owner of the goods and the salvor. The relationship is one which is implied by law. The salvor of property under pure salvage must bring his claim for salvage in federal/national court, which will award salvage based upon the "merit" of the service and the value of the salvaged property.

Pure salvage claims are divided into "high-order" and "low-order" salvage. In high-order salvage, the salvor exposes himself and his crew to the risk of injury and loss or damage to his equipment in order to salvage the damaged ship. Examples of high-order salvage are boarding a sinking ship in heavy weather, boarding a ship which is on fire, raising a ship or boat which has already sunk, or towing a ship which is in the surf away from the shore. Low-order salvage occurs where the salvor is exposed to little or no personal risk. Examples of low-order salvage include towing another vessel in calm seas, supplying a vessel with fuel, or pulling a vessel off a sand bar. Salvors performing high order salvage receive substantially greater salvage award than those performing low order salvage.

In both high- and low-order salvage the amount of the salvage award is based first upon the value of the property saved. If nothing is saved, or if additional damages is done, there will be no award. The other factors to be considered are the skills of the salvor, the peril to which the salvaged property was exposed, the value of the property which was risked in effecting the salvage, the amount of time and money expended in the salvage operation etc.

A pure or merit salvage award will seldom exceed 50 percent of the value of the property salved. THE EXCEPTION TO THAT RULE IS IN THE CASE OF TREASURE SALVAGE. Because sunken treasure has generally been lost for hundreds of years, while the original owner (or insurer, if the vessel was insured) continues to have an interest in it, the salvor or finder will generally get the majority of the value of the property. While sunken ships from the Spanish Main (such as Nuestra Señora de Atocha in the Florida Keys) are the most commonly thought of type of treasure salvage, other types of ships including German submarines from World War II which can hold valuable historical artifacts, American Civil War ships (the USS Maple Leaf in the St. Johns River, and the USS Monitor in Chesapeake Bay), and sunken merchant ships (the SS Central America off Cape Hatteras) have all been the subject of treasure salvage awards. Due to refinements in side-scanning sonars, many ships which were previously missing are now being located and treasure salvage is now a less risky endeavor than it was in the past, although it is still highly speculative.