Cross-Border Maritime Disputes and the Georgian Code
A maritime dispute almost always carries a foreign element: the ship flies another state's flag, the cargo originates from another country, the incident occurs on the high seas, and the parties are residents of different states. That is why the first question to be settled in such a dispute is which country's legislation applies. The Maritime Code of Georgia answers this directly, with connecting-factor rules for individual relationships — Articles 19, 20, 23, 298 and 321 of the Code govern general average, collisions of ships, salvage and damage caused by pollution of the sea. Here the Georgian Code carries the national expression of the international maritime order: its rules regulate the same situations that international maritime practice knows, and it is precisely these norms that apply in a Georgian court or at the enforcement stage.
General Average — Which Country's Law Applies
As a general rule, the relationship connected with general average is governed by the legislation of the country whose port the ship entered after the event that caused the general average — unless the parties have provided otherwise. The parties' agreement thus precedes the automatic attachment of law, and this too is a maritime expression of contractual freedom. A special rule exists for the Georgian connection: where the parties whose interests were affected by the general average are residents of Georgia, Georgian legislation applies — again on condition that the parties have not provided otherwise. The material liability for general average is apportioned according to the procedure established by the corresponding articles of the Code — meaning that the distribution of loss among the participants follows a concrete statutory mechanism rather than the court's discretion.
Collisions: Territorial Waters, the High Seas and the Same-Flag Rule
Compensation for damage caused by collisions of ships in territorial and internal waters is governed by the legislation of the state on whose territory the collision occurred — the lex loci rule dominates here. For collisions on the high seas the Code offers a different solution: where the collision occurred on the high seas and the dispute connected with it is examined in Georgia, the rules set out in the Code apply — the forum country thus applies its own substantive law. A third variant concerns ships under one flag: where the colliding ships sail under the flag of one and the same country and the collision does not affect the interests of a third party, the law of the flag state applies regardless of where the collision occurred. Together these three rules form a complete grid: first the place is determined, then the forum, then the flag — and each of them governs its own sphere.
Salvage, Salvage Awards and Pollution of the Sea
In territorial and internal waters, the matter of reward for the salvage of a ship or other object is governed by the legislation of the state where the salvage took place, unless the parties' agreement provides otherwise; for a salvage on the high seas with a dispute examined in Georgia, the rules of the corresponding chapter of the Code apply. Where the salved and the salvaging ships sail under the flag of one state, the matter is governed by that state's legislation regardless of the place of salvage, and the reward allocated for salvage among the shipowner, the crew of the salvaging ship and its members is distributed according to the law of the flag state. A salvage operation is any act undertaken in any waters to rescue persons, a ship or other property in danger, and these rules extend to a ship sailing under the naval ensign of Georgia. Pollution of the sea is a distinct relationship: the shipowner or the person defined by the Code answers for damage caused by the discharge or spillage of oil from the ship or by the dumping into the sea of substances harmful to human health and the living resources of the sea — damage inflicted on the external marine environment, the coast or any other object, and the loss includes the costs of reasonable measures taken to prevent or reduce damage caused by the spill or the dumping.
Frequently Asked Questions
Below we answer the questions most frequently asked on this subject.
Two ships collided on the high seas — which country's law governs?
If the dispute is examined in Georgia, the rules of the Maritime Code apply; and where both ships sail under the flag of the same country and no third party's interests are affected, the law of the flag state applies regardless of the place of the collision.
Can the parties choose the applicable law themselves?
Yes — in general average and salvage matters the Code states its connecting rule only for want of a different agreement of the parties, so an agreement precedes the automatic rule.
Who answers for an oil spill from a ship?
The shipowner or the person defined by the Code answers for damage caused by the spillage, discharge or dumping of harmful substances, and the loss includes the costs of preventive measures as well.
What counts as a salvage operation?
Any act undertaken in any waters to rescue persons, a ship or other property in danger; the rules extend to ships sailing under Georgia's naval ensign.
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