In a landmark ruling on Wednesday, Britain’s highest court declared that South Africa retains sovereign immunity in a dispute over approximately $43 million in silver bullion, salvaged from a sunken World War II cargo ship. The U.K. Supreme Court determined that the cargo did not serve a “commercial purpose,” thereby not falling under exceptions in the State Immunity Act of 1978.
South Africa Immune To Sunken WWII Silver Salvage Claim: Court’s Decision Reverses Previous Appeal
The unanimous decision by the Supreme Court overturned an earlier ruling by the Court of Appeal, which had stated that the silver was subject to commercial activity due to its transportation under a commercial contract. However, Justice David Lloyd-Jones clarified that this interpretation was a “distortion of language,” as the cargo, in transit, could not be considered “in use.”
Detailed Look into the Case’s Background
South Africa had initially purchased the silver for coin production by its national mint, arranging shipment from India to Durban. The SS Tilawa, tasked with transporting the silver in November 1942, met a tragic fate when struck by Japanese torpedoes, sinking deep into the Indian Ocean. Despite the catastrophic loss, the silver was preserved in the ship’s bullion room until discovered in 2014.
