## Facts

- The three-masted schooner *Annie Lord* sailed from Windsor, Nova Scotia, to Fall River, Massachusetts, with a cargo of lumber.
- In February 1916, she was knocked down by a squall, filled with water, became waterlogged and unmanageable, and her crew was forced onto deck in severe winter conditions.
- The fishing schooner *Flora L. Oliver* found the *Annie Lord* about 16 miles east-southeast of Thacher’s Island Light in very cold weather, high wind, and a rough sea.
- The *Annie Lord*’s crew had suffered serious exposure; several were frostbitten, and the court found it doubtful they would have survived the coming night without serious loss or injury.
- At the request of the *Annie Lord*’s master, the *Oliver* took off the entire crew; once aboard the *Oliver*, most immediately went below and did no work on the voyage to port.
- After taking off the crew, the *Oliver*’s master decided to try towing the waterlogged *Annie Lord* toward Boston; five *Oliver* crewmen went aboard the *Annie Lord* to set additional sail and try to influence her course, since she did not answer her helm but could be steered somewhat by sail trim.
- The work aboard the derelict was harsh and exposing; the *Oliver*’s men could not remain aboard long and had to be frequently relieved, especially as conditions worsened.
- During the night, the wind shifted north and increased, the cold intensified, and the sea became very rough; towlines parted several times, were repaired, and finally broke again around 1:30 a.m., when no spare lines remained.
- With conditions deteriorating and with frostbitten men needing medical attention, the *Oliver*’s master ended the towing attempt at a point about five or six miles northeast of Minot’s Ledge Light.
- Before leaving, the *Oliver*’s crew took steps aimed at the *Annie Lord*’s safety: they headed her straight off shore, trimmed her sails for an easterly course, hung a signal lantern in her rigging, and placed lighted torches on deck to warn other vessels and help locate her.
- The *Oliver* then removed her men from the *Annie Lord* and made for Gloucester; the *Oliver* arrived badly iced up, unable to handle her sails, and had to be towed into port.
- After arrival, most of the *Annie Lord*’s men were taken to a hospital. At the suggestion of the *Oliver*’s master, the *Annie Lord*’s captain telephoned the custom house to have the U.S. revenue cutter *Gresham* notified to go out and pick up the *Annie Lord*.
- The *Gresham* later succeeded in bringing the *Annie Lord* into port. The court found the *Oliver*’s towing attempt did not itself bring the vessel in and did not materially account for the final recovery, but credited the *Oliver* with steps that guarded the derelict and helped set in motion the later governmental recovery effort.

## Issues

1. Whether the *Flora L. Oliver* rendered compensable salvage services to the *Annie Lord* even though its towing effort did not itself result in bringing the vessel to port.
2. Whether the rescue of the *Annie Lord*’s crew, combined with limited acts directed toward the vessel and cargo (course change, warning lights, and arranging notice to the *Gresham*), supported a property-salvage award under traditional admiralty doctrine.

## Decision

- The court treated the *Oliver*’s conduct as a salvage service to the *Annie Lord* and allowed salvage compensation.
- The court rejected a large award because the *Oliver* did not complete the saving of the ship and cargo, and its tow effort did not materially account for the vessel’s ultimate arrival.
- The court awarded a moderate, limited salvage amount reflecting the real hardship and risk faced, while tying compensation to the property-related contribution (not merely the humane rescue of life).

## Legal Principles

- Salvage generally requires (i) marine peril, (ii) voluntary service not owed by duty or contract, and (iii) success, in whole or in part, in saving maritime property.
- A salvor need not be the final actor to bring the vessel into port; acts that materially aid preservation of the property, or materially help later successful efforts, can satisfy the “success” element.
- Under traditional American admiralty rules, saving life alone does not support a salvage award unless there is a property saving (or property-related service) to which an award can attach; life-saving efforts may still affect the amount once a valid property-salvage basis exists.
- The amount of salvage is set by the degree of property benefit actually conferred and the risks, labor, and hardships undertaken, including dangers from weather, sea state, and harm to the salvor’s own vessel.

## Conclusion

The court held that the *Flora L. Oliver*’s services went beyond a humane rescue of the *Annie Lord*’s crew and included meaningful acts aimed at the vessel and cargo—altering the derelict’s heading, setting warning lights, and helping trigger the *Gresham*’s later recovery—so a modest property-salvage award was proper even though the *Oliver*’s towing effort did not itself bring the *Annie Lord* to safety.


*The Annie Lord*, 251 F. 157 (D. Mass. 1918).

The Annie Lord, 251 F. 157 (D. Mass. 1918).