Overseas Tankship v Morts Dock (The Wagon Mound) (1961)

Law of Torts · Remoteness of Damage

Facts.

The defendants’ ship negligently discharged furnace oil into Sydney harbour. The oil spread to the plaintiffs’ wharf, where welding was in progress. Molten metal fell, ignited cotton waste floating on the oil, and the resulting fire destroyed the wharf. Expert evidence was that furnace oil on water was not thought capable of being ignited in that way.

Issue.

Is a negligent defendant liable for all direct consequences of his act, or only for consequences of a foreseeable kind?

Held.

Only for consequences of a foreseeable kind. The Privy Council overruled Re Polemis. Fouling of the wharf was foreseeable and recoverable; destruction by fire was not foreseeable and was too remote.

Why it matters.

It is the test of remoteness applied today, and it must be contrasted with Re Polemis in every remoteness answer.

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