Following a collision in which your vessel struck a harbour pier and caused significant damage, the MAIB investigates and the MCA subsequently convenes a Formal Investigation under Section 63 of the Merchant Shipping Act 1995. What is this and what are your rights?

A. FORMAL INVESTIGATION under the Merchant Shipping Act 1995 (S.63/64): a Formal Investigation is the most serious level of MCA post-casualty investigation, conducted by a Wreck Commissioner or equivalent, typically sitting with nautical assessors. Purpose: to determine the cause and circumstances of the casualty; to apportion responsibility; and where appropriate to suspend or cancel the certificate of the master and/or officers. Procedure: (1) The investigation is public — press and observers may attend; (2) The Secretary of State presents the case; the master is the respondent; (3) MASTER'S RIGHTS: right to be legally represented (strongly recommended); right to cross-examine witnesses; right to call witnesses; right to put forward defences and mitigation; (4) OUTCOMES: the investigation may: find no fault; find fault with the master and impose a penalty (reprimand, suspension, cancellation of certificate); refer for criminal prosecution; (5) APPEAL: a decision of a Formal Investigation can be appealed to the High Court (Admiralty Division); (6) MAIB vs MCA FORMAL INVESTIGATION: the MAIB investigation is SEPARATE and independent — its purpose is to improve safety (not to apportion blame). MAIB reports are not intended to be used in legal proceedings. The MCA Formal Investigation is the mechanism for considering professional conduct.

B. A Formal Investigation is the same as the MAIB investigation. Once MAIB reports, no further proceedings can be brought against the master.

C. The master has no right to legal representation at a Formal Investigation — it is an administrative process, not a legal one.

D. A Formal Investigation can only be initiated if the master is found to have been criminally negligent. For civil negligence, the matter goes to the Admiralty Court instead.

A. LLOYD'S OPEN FORM (LOF 2020) — the standard maritime salvage contract: Key characteristics: (1) NO CURE — NO PAY: the salvor is only paid if the salvage operation is successful (salved property is brought to a place of safety). If the vessel is lost, the salvor receives nothing (except potentially under the environmental protection enhancement — SCOPIC); (2) SCOPIC CLAUSE (Special Compensation P&I Club): a supplement to LOF that provides the salvor a safety net of "special compensation" for costs plus uplift if their efforts protect the environment, even if the salvage itself fails — to encourage salvors to attempt environmentally beneficial but risky operations; (3) AWARD DETERMINATION: the salvage award is fixed by Lloyd's arbitration (not the contract) — the salvor and shipowner are both bound to arbitration; (4) MASTER'S AUTHORITY: the Master has authority under admiralty law to sign a salvage agreement on behalf of the shipowner and cargo interests in cases of IMMINENT DANGER — the authority arises from necessity and the master's agency role. In this scenario — aground, salvage required — you MAY sign LOF on behalf of the shipowner. Immediately notify the owner and P&I Club. Consider inviting SCOPIC activation.

B. Never sign LOF without express authorisation from the shipowner. Wait until the owner is reached even if the vessel sinks. Only the shipowner can commit to a salvage contract.

C. LOF means the salvor is paid a fixed percentage of the vessel's value regardless of success. It is always better to negotiate a daily hire rate instead of LOF.

D. The master has no authority to sign any commercial contract. LOF can only be signed by the company's legal department. Reject LOF and request services under towage terms.

A. GENERAL AVERAGE (GA): a principle of maritime law whereby extraordinary sacrifices or expenditures made voluntarily for the common safety of the venture are shared proportionally by all parties (ship, cargo, and freight). York-Antwerp Rules 2016 — the modern standard governing GA: Rule A: there is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. REQUIREMENTS for GA: (1) Common peril — all parties (ship AND cargo) must face the same danger; (2) Voluntary act — intentional; (3) Reasonable — judged at the time; (4) Success — the property must be saved. In this scenario: flooding the engine room was voluntary, sacrificed cargo (destroyed by CO2 and flooding), and saved the ship — this is a classic GA act. DECLARATION: the master declares GA by noting it in the Official Log Book and notifying all B/L holders and cargo interests (through the P&I Club and average adjusters). The master appoints an Average Adjuster (Lloyd's Agents) to calculate each party's contribution. Cargo interests must provide a GA Bond and/or deposit before cargo is released.

B. General Average only applies if the ship's own cargo is sacrificed. Fire extinguishant damage to third-party cargo is a P&I liability, not General Average.

C. The master cannot declare General Average — only the shipowner can. The master's role is to record the facts; the insurance company declares GA.

D. General Average requires the sacrifice to be accidental. Since flooding the engine room was a deliberate decision, it is a tortious act and covered by hull insurance, not General Average.