Admiralty law
In the first few years after Florida was acquired by the United States, salvage awards were determined either by prior agreement between the wreck master and the captain of the wrecked ship, or by arbitration. As the persons available to serve as arbitrators usually had ties to the wrecking industry, if not a direct business relationship with the wreck master and/or the owners of the wrecking vessels, the process was often abused, with awards as high as 90% of the salvaged value. In 1829 a United States District Court was established in Key West with admiralty jurisdiction, after which most salvage cases were decided in court. Court awards for a wrecking operation averaged about 25% of the salvage value. Private agreements and arbitration remained an option, however, particularly when the judge was not available. A visitor to Key West in the 1880s reported that the United States District Court was in session almost every week, and had heard more than 700 Admiralty law cases during the preceding year.