Privy Council

Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd (The Wagon Mound No 1)

[1961] AC 388; [1961] UKPC 219611 min read
The case in brief30-second read
Facts
Furnace oil negligently spilled from the Wagon Mound in Sydney Harbour spread to the respondents' wharf, where welding sparks ignited it and the wharf was damaged by fire.
Issue
Whether the defendant was liable for damage that was a direct but unforeseeable result of its negligence.
Held
The defendant was not liable because fire damage was not reasonably foreseeable. The Privy Council rejected the direct consequence test in Re Polemis.
Principle
A negligent defendant is liable only for damage of a kind that was reasonably foreseeable.
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Facts

  • Furnace oil negligently spilled from the Wagon Mound in Sydney Harbour spread to the respondents' wharf, where welding sparks ignited it and the wharf was damaged by fire.

Issue

  1. Whether the defendant was liable for damage that was a direct but unforeseeable result of its negligence.

Held

  • The defendant was not liable because fire damage was not reasonably foreseeable. The Privy Council rejected the direct consequence test in Re Polemis.

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Citation

Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd (The Wagon Mound No 1) [1961] AC 388; [1961] UKPC 2

Reported: https://www.bailii.org/uk/cases/UKPC/1961/1961_2.html (not on IK or SCI). This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.