Commercial Code

If all or part of a ship or the cargo and other such objects on a ship (hereinafter referred to as "cargo and other such objects" in this Part) are involved in a marine accident, a person that salvages these (hereinafter referred to as a "salvor" in this Chapter) may claim salvage charges commensurate with the results of the salvage even if there is no contractual basis for the salvor to salvage them.

A shipowner and master have the authority to conclude a salvage contract on behalf of the owners of cargo and other such objects.

If there is no special agreement on salvage charges and a dispute arises over their amount, the court determines the amount of salvage charges in consideration of the degree of risk, the results of the salvage, the labor and costs incurred in the salvage (including those incurred for prevention or mitigation of marine pollution), and all other circumstances.

If the salvage charges for a marine accident are specified by a contract but their amount turns out to be extremely unreasonable, a party to the contract may demand an increase or reduction of that amount. The provisions of the preceding Article apply mutatis mutandis in such a case.

Unless there is any special agreement to the contrary, the amount of salvage charges may not exceed the total value of the property salvaged (including the amount of freight charges for the cargo salvaged).

If two or more persons carry out a salvage, the provisions of Article 793 apply mutatis mutandis to the proportion of the salvage charges to be paid to each salvor.

In the case prescribed in Article 792, paragraph (1), a person that has worked to save people's lives may also be paid salvage charges pursuant to the provisions of the preceding paragraph.

Of the salvage charges payable to a ship engaged in salvage, two-thirds must be paid to the shipowner and one-third must be paid to the mariners.

Any special agreement that is incompatible with the provisions of the preceding paragraph and that is disadvantageous to the mariners is void.

Notwithstanding the provisions of the preceding two paragraphs, if the proportion of salvage charges is extremely unreasonable, the shipowner may claim an increase or reduction thereof from the mariners, and vice versa. In this case, the provisions of Article 793 apply mutatis mutandis.

The ratio of salvage charges to be paid to each mariner is determined by the owner of the ship that was engaged in the salvage. In this case, the provisions of the preceding Article apply mutatis mutandis.

If the salvor is a person that is in the salvage business, the full amount of salvage charges must be paid to the salvor, notwithstanding the provisions of the preceding paragraphs.

To determine the proportions of salvage charges pursuant to the provisions of paragraph (4) of the preceding Article, the shipowner must prepare a proposal of the proportions and present it to the mariners by the end of the voyage.

A mariner may file an objection to the proposal referred to in the preceding Article. In this case, the objection must be filed with the maritime authorities at the first port at which it is possible to file an objection after the proposal is presented.

If the maritime authorities find there to be grounds for an objection under the provisions of the preceding paragraph, they may correct the proposal referred to in the preceding Article.

A shipowner may not pay the salvage charges to the mariners until the maritime authorities decide on an objection under the provisions of paragraph (1).

If a shipowner neglects to prepare a proposal referred to in Article 798, the maritime authorities may order the shipowner to prepare a proposal, at the request of a mariner.

If the shipowner disobeys an order under the provisions of the preceding paragraph, the maritime authorities may personally make a determination referred to in Article 797, paragraph (4).

In the following cases, a salvor may not claim salvage charges:

the salvor caused the marine accident intentionally; or

the salvor carries out a salvage despite having been turned away for legitimate reasons.

A person that holds a claim for salvage charges holds a statutory lien on cargo and other such objects that have been salvaged.

The provisions of Article 843, paragraph (2), Article 844, and Article 846 apply mutatis mutandis to a statutory lien referred to in the preceding paragraph.

A master of a salvaged ship has the authority to perform any and all acts in and out of court in connection with the payment of salvage charges on behalf of the obligor of the salvage charges.

The master of a salvaged ship may stand as a plaintiff or defendant in an action involving the salvage charges on behalf of the obligor of the salvage charges.

The provisions of the preceding two paragraphs apply mutatis mutandis to the master of a ship engaged in the salvage. In this case, the term "obligor" in these provisions is deemed to be replaced with "obligees (limited to the shipowner and mariners of the ship)".

The provisions of the preceding three paragraphs do not apply to salvage carried out based on a contract.

If all or part of a ship's cargo and other such objects are salvaged, their owner is liable to use them to perform obligations related to the salvage charges.

If substances such as oil discharged from a ship involved in a marine accident cause pollution of the sea, and that pollution causes considerable harm to the conservation of the marine environment in a wide range of coastal seas, harms human health, or is likely to cause such harm, and a person engaged in the salvage of that ship takes measures to prevent or mitigate the harm, the person (hereinafter referred to as a "salvor engaged in antipollution measures" in this Article) may claim payment of special compensation against the shipowner, unless there is any special agreement to the contrary.

The amount of special compensation is an amount equivalent to the costs necessary or beneficial for the measures prescribed in the preceding paragraph.

If a salvor engaged in antipollution measures prevents or mitigates the damage prescribed in paragraph (1), the court determines the amount of special compensation, at the request of a party, within the range between an amount equivalent to the costs prescribed in the preceding paragraph and the amount calculated by adding 30 percent of that amount (or 100 percent of that amount if there are special circumstances such as that amount is extremely insufficient as compared to the results of the prevention or mitigation of the damage) to that amount. In this case, the provisions of Article 793 apply mutatis mutandis.

If a salvor engaged in antipollution measures holds a claim for salvage charges for the same marine accident, the amount of special compensation is calculated by deducting the amount of the salvage charges.

If a salvor engaged in antipollution measures is unsuccessful in preventing or mitigating the damage prescribed in paragraph (1) due to its negligence, the court may determine the amount of special compensation in consideration of this.

A claim for salvage charges or special compensation is extinguished by prescription if it is not exercised in the two years after the salvage operations are completed.

The provisions of this Chapter apply mutatis mutandis to the salvage of a non-seagoing vessel and to cargo and other objects on a non-seagoing vessel.