Overseas Tankship (U. K. ) Limited v. The Miller Steamship Co. Pty. Limited and another (Wagon Mound Not any 2), Contencioso Committee in the Privy Council on charm from the Great Court of New South Wales, 1966

You will discover extracts using this case at p. 80 of Weinrib and then a summary of the result of this case at p 183. The case has some crucial passages further than what are available in the s. 80 extract. Please put the following on your reading:


This can be an charm from a judgment of Walsh M. dated tenth October 1963 in the Substantial Court of recent South V/ales in commercial cases with which he granted to the participants sums of £80, 000 and £1, 000 in regards to damage by fire endured by their boats. " Corrimal " and" Audrey D" on initial November 1951. These boats were after that at Sheerlegs Wharf, Morts Bay, in Sydney Harbor undergoing fixes. The appellant was charterer by demise of a yacht. the " Wagon Mound", which in the first hours of 30th August 1951 was taking in bunkering oil from Caltex River not far from Sheerlegs Wharf. By reason of carelessness of the " Wagon Mound" engineers a large quantity of this oil overflowed from the " Lorry Mound" to the surface in the water. A lot of hours later on much of the olive oil had drifted to and accumulated circular Sheerlegs River and the respondents' vessels. About 2 p. m. in 1st November this essential oil was set alight: the fireplace spread quickly and induced extensive problems for the River and to the respondents' vessels, An action was raised against the present appellant by owners of Sheerlegs Wharf on the ground of negligence. About appeal to the Board it absolutely was held the fact that plaintiffs weren't entitled to restore on the ground it turned out not foreseeable that such oil on the surface with the water could possibly be set tumble (Overseas Tankship (U. K. ) Limited. v. Morts Dock and Engineering Co. [1961] A. C. 388). Their Lordships will label this case as the Lorry Mound Number I. … Walsh M. had present in their prefer in hassle but against them [the individual shipowners] in neglect. …Their Lordships are delinquent to that learned judge for the full and careful survey of the data which is define in his common sense ([1963] one particular Lloyd's Associate. 402). Couple of his studies of fact have been bitten, and their Lordships do not find it necessary to decide or deal with the evidence at any length. Nonetheless it is desirable to give a lot of explanation showing how the fire began before aiming the discovered judge's studies. In the course of fixing the respondents' vessels the Morts Dock Co., the owners of Sheerlegs River, were carrying out oxy-acetylene welding and cutting. This job was apt to cause items or drops of hot metal to fly off and fall in the sea. So the moment their supervisor arrived within the morning of 30th August and observed the solid scum of oil around the Wharf having been apprehensive of fireplace danger and he stopped the work while he took advice. He consulted the manager of Caltex Wharf and after several further assessment he was assured that having been safe to proceed: therefore he did so, and the fix work was carried on normally until the flames broke out on 1st Nov. Oil with this character having a flash level of 170op. is extremely challenging to ignite in the open. But we now know that that is not impossible. There is no certainty about how exactly this oil was set alight, but the most possible explanation, accepted by Walsh J., is the fact there was suspended in the oil-covered water several object helping a piece of aliment material, and this a popular piece of material fell in it• mainly because it burned for the sufficient a chance to ignite the nearby oil. The findings in the learned trial judge [i. at the. in this case – Wagon Pile No 2] are as follows: -- " (l) Reasonable persons in the situation of the representatives of the " Wagon Mound" would respect furnace olive oil as extremely tough to ignite upon drinking water. (2) Their very own personal experience would probably have been that this experienced very rarely...


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