Response from Boat/US
We have reviewed the situation with the TowBoat/U.S. tower that was involved in the salvage in order to verify the facts surrounding the event. They have informed us that your account of the situation was pretty accurate, although there were some very minor discrepancies. The tower has indicated that he has been asking some of the same questions.
Let us address your questions individually. Your first question was who has the ultimate authority to decide whether the vessel should sink or be beached. This is not always going to be clear. There will always be jurisdictional questions whether it involves the federal government in the form of the USCG or the state/local government, in this case the fire department. From the perspective of the boat owner, his insurance company and the salvor on scene the desire is to limit the exposure to environmental damage and thus any liability that arises from the incident. The salvor's intent in this particular case was to extinguish the fire while avoiding the vessel submerging, which would have significantly increased the cost of the salvage effort as well as significantly increasing the likelihood of a fuel spill. However, from a practical standpoint the tower/salvor and the boatowner must also attempt to work with the governmental authority(s) that may be present to avoid incurring fines to the boatowner. Fines are not covered by the insurance policy.
Your second question was who will have the ultimate responsibility for the cleanup and salvage. This will always be the boatowner. If the boatowner is insured, then depending upon the language included in the policy, the insurance carrier would be responsible to "stand in the shoes of the insured". Although we cannot speak for any other insurance carriers, the BoatU.S. Yacht Policy supplies coverage for salvage costs up to the limit of coverage (value) of the boat as well as fuel spill liability coverage up to $500,000. The specific policy language should be reviewed in regards to other Insurance Company's policies.
You ask if the owner's insurance company will be the one to cover the costs of the clean up even if the rights were already turned over to the salvage company. In order to answer this, we first have to discuss salvage rights.
In the event of a loss in which salvage is necessary, the salvor does not automatically receive ownership of the boat. The concept of salvage in maritime law allows for a salvor to have rights to a percentage of the value of the property saved.. This means that they can exert a lien against the boat to recover a percentage of the value of the vessel after the loss, before any repairs are performed. A salvor does not own the boat or take on any of the liability for the loss, other than for damages caused by their own negligence. Therefore the boatowner is still responsible for the costs associated with any cleanup, salvage or any liability that may arise out of the occurrence. Again the insurance policy should be reviewed to determine the extent of coverage for these items under the policy.
Finally you ask if the fire department would be liable for the environmental catastrophe if someone shows it could have been averted. The fire department's position in this type of situation is to protect public safety and extinguish the fire. If in the course of extinguishing the fire they sink the vessel, any fuel spill, the cost of clean up as well as any damage that results is still the boatowners responsibility. If they are adequately insured, then their insurance carrier would take care of it. The insurance carrier may have the opportunity to attempt to recover the costs involved if negligence could be shown against the fire department although it would be doubtful that they would be successful.
In this particular situation the salvor had the boat in tow and was attempting to fight the fire with their own personnel, several of whom are volunteer firefighters trained in firefighting techniques. The fire boat that was on scene was apparently an 18'
Boston
Whaler that was unable to pump while underway. Therefore the Fire Department kept requesting the salvor to drop the line. While this discussion was ongoing over the VHF Radios the salvor continued to tow the boat to a beach where they could be sure the boat would not submerge. Upon arriving in shallow water they stepped aside and let the fire department take over in order to avoid further confrontation. We believe this action was appropriate for several reasons. First the action taken by the salvor allowed the vessel to be extinguished while avoiding it being submerged in 80-90 feet of water which would have made the salvage and recovery effort significantly more difficult and expensive. It also would have increased the likelihood of a fuel spill.
Upon getting the boat beached we also agree with the salvors decision to step aside temporarily in order to avoid the potential conflict that may have occurred.
We hope we have been able to answer your questions satisfactorily and appreciate your concern and interest in the situation.
I am available from
8:30 a.m.
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5:30 p.m.
(EST) Monday through Friday. Please feel free to contact me if you have any questions regarding this claim.