LOF 2020 - an update 

Lloyd's has completed its review of the Lloyd's Standard Form of Salvage Agreement - the Lloyd's Open Form or LOF - and the new version, LOF 2020, has been published. The Form is accompanied by the Lloyd's Salvage Arbitration Clauses - LSAC 2020. We take a look at the key changes. 
 
LOF 
 
There are two amendments to the LOF: 
 
1. Clause H “Deemed performance” deals with re-delivery of the casualty by the contractors. The word “notwithstanding” has been replaced with “even though” and “if” by “provided that”, so that the relevant part of the new clause now reads: 
 
“H Deemed performance: The Contractors’ services shall be deemed to have been performed when the property is in a safe condition in the place of safety stated in Box 3 or agreed or determined in accordance with clause A. For the purpose of this provision the property shall be regarded as being in a safe condition even though that property (or part thereof) is damaged or in need of maintenance provided that (i) the Contractors are not obliged to remain in attendance… “ 
 
2. Important Notice 4 “Notification to Lloyd’s” now requires a copy of any side agreement that amends the terms or provisions of LOF 2020 to be sent to Lloyd’s. 
 
LSAC 2020 
 
The LSAC 2020 combines the old LSSA Clauses and the Lloyd’s Procedural Rules. Key amendments here include: 
 
1.4 - new mention of Fixed Cost Arbitration Procedure (FCAP) provisions, which are set out in clause 15 of the LSAC 2020. 
 
5.3 - new clause dealing with security for the Arbitrator’s fees and expenses. 
 
6.2 (vii) - new clause giving the Arbitrator the right to terminate the LOF where he considers it fair and just to do so. 
 
7.4 - new clause on service of proper notice on secured but unrepresented cargo (this used to be clause 13). 
 
14 - amendments to the wording so that this clause now relates to all cargo and a change to the rule allowing lower value cargo to be omitted from the award – previously this was value by agreement but now the value is to be determined by the Arbitrator.  
 
15 - Fixed Cost Arbitration Procedure (FCAP) – this is now included and allows for cases where the security demand is less than USD2,000,000 or the Arbitrator feels that the factual issues are likely to be straightforward to be conducted under FCAP. 
 
19 - Contractor’s Special Right to Terminate – where an owner validly terminates the obligation to pay SCOPIC in accordance with SCOPIC clause 9(i) but the Contractor is unable to terminate SCOPIC and the LOF under clause 4 (ii), the Contractor has the right to apply to the Arbitrator for an order that the LOF can be terminated without prejudice to its rights to recover SCOPIC up to the date of termination or its rights to recover under Article 13. 
 
Copies of LOF 2020 and the LSAC 2020 are available on the Lloyd’s website.  
 
C Solutions Admiralty team regularly advises on maritime casualty response, investigation and legal matters and has wide experience of all types of salvage, towage and wreck removal contracts including LOF and SCOPIC. For further information please contact: 
 
Clive Beesley 
Chief Operations Officer (Hong Kong) 
T: +852 9096 9561 
E: clivebeesley@csolutionslimited.com 
Jim Allsworth 
Regional Director (Greece) 
T: +30 6949 079727 
T: +44 7747 637 873 
E: jim@csolutionslimited.com 
 
 
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