A Sunken Boat Becomes Someone's Legal Problem Immediately

By Gus Marchetti, Salvage master. Reviewed by Dana Whitcombe, technical reviewer.

Marine Salvage & Recovery | Hull & Bottom Cleaning October 6, 2003, a 41-foot Chris Craft named Miss Conduct went down at her slip in Clear Lake, Texas. The water was still; the sun was up. I got there with a dewatering pump and a salvage contract, but the owner wasn't interested in raising her. He asked if he could just hand me the keys and walk. That was 21 years ago, and that lesson has stuck: a sunken boat is not a possession you can abandon like a broken lawnmower. It's a legal event that starts the second the hull goes under. The moment a boat sinks, someone becomes a defendant. Usually it's the owner. Sometimes it's the marina, sometimes the salvor. But the legal machinery turns whether anyone wants it to or not. I've pulled boats up that looked like trash and watched the real battle happen in courtrooms. This is what you need to do in the first 48 hours, and what not to do, so the boat doesn't sink you a second time.

Call every agency that can fine you

The first call isn't to your brother-in-law with a dive tank. It's to the National Response Center at 800-424-8802. You are required by law to report any discharge of oil or a hazardous substance. If there was fuel in the tanks, and especially if you see sheen, don't wait. I've seen guys try to keep it quiet because they thought a small sheen would go away. It doesn't. The Coast Guard can slap you with a $40,000 civil penalty, and if someone tries to call it a knowing discharge, you're looking at criminal time. Report the sinking, and say 'possible discharge' even if you don't see anything. That starts the clock and shows good faith.

Get a salvage contract in writing before anyone touches the boat

The word 'salvage' has a meaning in maritime law that is nothing like the sign on a tow truck. A salvor can claim a reward based on the value of the saved property and the risk involved. If you ask a friend to 'help' and he gets hurt, you're also liable. If you hire a professional, get a contract that says the rate per hour or a flat fee for the specific work. Never sign a letter of agreement that says 'a fair compensation for services rendered' — that is a blank check. I once had an owner who let a salvage crew start pumping before a price was set. That crew ended up with a maritime lien on the boat, meaning they could force a sale. The owner paid twice: once for the salvage, once for the legal fight.

Contain the pollution before you try to raise the boat

The boat is on the bottom, but the environmental liability is on you. Under the Clean Water Act, you are strictly liable for any oil spill, even if it was an accident. That means no negligence defense. If a tank corrodes and leaks a month later, it's still your bill. Your best move is to have divers seal the vents, through-hulls, and any open openings, and to place containment booms around the wreck. This is a separate cost from the lifting. I always tell owners: the fuel bill is going to be half the total. If you don't want to pay it, consider whether the boat is worth raising at all.

Don't let the marina own the problem

When a boat sinks at a dock, the marina becomes a player. They have a maritime lien for any damage to the dock and for the cost of removing the vessel from their slip. They can arrest the boat, which is a legal process that lets a federal marshal seize it and put it up for sale. You might think you can just abandon it, but the marina can come after you for the difference. I've seen a 30-foot trawler sit on the bottom for six months while the marina racked up dockage and legal fees. When the court sold it, it went for $1,500. The owner got a bill for $47,000. That was after the marina had already paid to have it hauled.

Abandonment is a process, not a decision

You cannot quit ownership by walking away. To properly abandon a boat in the United States, you have to transfer ownership to a new person, a recognized marine salvage company, or a recycling facility. You also need to notify the state registration agency and, if the vessel has a federal documentation number, the Coast Guard. The rule is that the owner of a sunken vessel must show a 'clear intention to relinquish ownership' to a specific party. A note in the chart cabinet doesn't count. I had a client who tried to give his boat to the reef by scuttling it in 30 feet of water. That's not abandonment, that's an illegal discharge. It cost him $100,000 in fines, and he still had to remove the wreck.

Report to your insurer, but don't give them a story

Your insurance policy is a contract. It covers sudden and accidental damage. If you say 'I knew the shaft seal was leaking for months,' you're handing them a denial. So call and report the loss, with the time and location, but say 'I don't know the cause yet' and then get a marine surveyor to inspect. Never give a recorded statement without a lawyer or a public adjuster. I've seen owners talk themselves out of coverage by trying to preemptively admit fault. The insurance company will send an adjuster; let the facts speak. If your policy includes wreck removal, it's usually up to a certain limit, and you need to know that limit before you authorize any work.

Frequently Asked Questions

Is it true that a sunken boat automatically becomes the property of the first salvor who reaches it? Not exactly. Maritime salvage law gives a salvor a reward, not ownership, unless the owner 'abandons' the vessel. Abandonment has to be clear and unequivocal. If you say 'come and get it' without a contract, you might lose title. That's why you need a written salvage agreement before work starts. What if the boat is a total loss and the insurance payout is less than the salvage cost? In that case, you may declare the vessel a 'constructive total loss' and give the title to the insurance company. They now own the wreck, and they take on the removal obligation. But you need to read your policy; some policies exclude pollution liability even if you give up the hull. Do I have to raise the boat myself if the state can't find me? No, but they will find you through the registration database. The state or county can place a lien on your land, your car, and even your other boats. They can also suspend your driver's license in some states. The cost of enforcement is tiny compared to the cost of leaving a boat on the bottom.