London Calling: Immunity
Argentum Exploration Ltd v Republic of South Africa [2024] UKSC 16
Factual background
In 1942, the Vessel ('SS TILAWA') was torpedoed by a Japanese submarine in the middle of the Indian Ocean. Consequently, the Vessel which carried a cargo of silver (purchased by the South African government for the purpose of making it into coin), sank. In 2017, the silver was discovered and recovered from the wreck of the Vessel by Argentum Exploration Limited ('Argentum').
Legal issues
Argentum commenced an in rem claim (i.e., a claim against property) for salvage against the silver which was challenged by the South African government on the basis that it was entitled immunity under English law. The immunity would mean that it will be difficult for a commercial party to enforce its contractual rights against that state.
Decision
The Supreme Court held that the use or intended use of the cargo was for the sovereign purpose of minting coins (i.e., non-commercial purpose) and therefore, the South African government could invoke immunity.
Essential message
This case is a landmark decision as it establishes an important precedent during a time where many more historic wrecks have and will become targeted by salvors. Any salvor intending to bring an in rem claim where the property was intended for use for a sovereign purpose, risks having their claim set aside or struck out.
Kind regards
Brian and Maria