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Torts Case of Remoteness

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Torts Case of Remoteness
Overseas Tankship (U.K.) Limited v.The Miller Steamship Co. Pty. Limited and another (Wagon Mound No 2), Judicial Committee of the Privy Council on appeal from the Supreme Court of New South Wales, 1966

There are extracts from this case at p. 80 of Weinrib and then a summary of the result of this case at p 183. The case has some important passages beyond what appear in the p. 80 extract. Please add the following to your reading:

LORD REID, LORD MORRIS OF BORTH-Y-GEST, LORD PEARCE, LORD WILBERFORCE, LORD PEARSON
[Delivered by LORD REID]
This is an appeal from a judgment of Walsh J. dated 10th October 1963 in the Supreme Court of New South V/ales in commercial cases by which he awarded to the respondents sums of £80,000 and £1,000 in respect of damage from fire sustained by their vessels ."Corrimal " and" Audrey D" on 1st November 1951. These vessels were then at Sheerlegs Wharf, Morts Bay, in Sydney Harbour undergoing repairs. The appellant was charterer by demise of a vessel. the "Wagon Mound", which in the early hours of 30th October 1951 had been taking in bunkering oil from Caltex Wharf not far from Sheerlegs Wharf. By reason of carelessness of the "Wagon Mound" engineers a large quantity of this oil overflowed from the "Wagon Mound" on to the surface of the water. Some hours later much of the oil had drifted to and accumulated round Sheerlegs Wharf and the respondents' vessels. About 2 p.m. on 1st November this oil was set alight: the fire spread rapidly and caused extensive damage to the Wharf and to the respondents' vessels,
An action was raised against the present appellant by the owners of Sheerlegs Wharf on the ground of negligence. On appeal to the Board it was held that the plaintiffs were not entitled to recover on the ground that it was not foreseeable that such oil on the surface of the water could be set alight (Overseas Tankship (U.K.) Ltd. v. Morts Dock and Engineering Co. [1961] A.C. 388). Their Lordships will refer to this case as the

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