UK Supreme Court to decide on state immunity of sunken treasure


BY:MARIA WARD-BRENNAN

UK Supreme Court

The Supreme Court is due to decide on the first case of state immunity over millions of pounds of salvage sunken silver.

The ship at the heart of this dispute is the SS TILAWA, which was sunk in the Indian Ocean on 23 November 1942 by two Japanese torpedoes. The ship was travelling from Bombay to Durban during the Second World War. The ship had passengers and crew on board and 281 were killed when the vessel sank.

The ship was regarded as unsalvageable, but in 2017, it was claimed to be recovered by London-based Argentum Exploration, who found a cargo of 2,364 bars of silver said to be worth $43m (£37.35m).

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Argentum Exploration locates and salvages valuable shipwrecks and is run by British racing driver Ross Hyett.

The silver bars were taken to Southampton in October 2017 and were declared to the Receiver of Wreck, an official who administers law dealing with maritime wrecks and salvage. At the time, the company mistakenly believed that the ship belonged to the UK.

The silver, at all material times, was owned by the government of the Republic of South Africa. The majority of the silver was intended to be used for the production of coinage for the Union of South Africa.

The company issued the salvage lawsuit in 2019, seeking a declaration that it was the owner of the silver bars. However, the Republic of South Africa argued that it was immune from the proceedings due to state immunity.

This case has already been in the High Court and the Court of Appeal. So far, on state immunity grounds, the courts have not agreed with the Republic of South Africa’s argument.

The Republic of South Africa asked the Supreme Court to dismiss Agentum’s claim for salvage on the ground that it is immune from the jurisdiction of the UK under the State Immunity Act 1978. The Supreme Court will rule on this tomorrow.

This case was the first ever to consider the State Immunity Act since it was enacted in 1978. The case not only tests the state immunity law but also the law of salvage. The decision will be watched by those in the maritime sector as well as those with a love of history.