The Wagon Mound (No 2) - Detailed case brief Torts: Negligence PDF

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Detailed case brief
Torts: Negligence...

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The Wagon Mound Area of law concerned:

Negligence- Remoteness

Court: Date:

1967

Judge:

Lord Reid

Counsel: Summary of Facts:

Appellant owned the Wagon Mound, from which by a careless act oil overflowed onto the surface of the water. Some hours later much of the oil had drifted to and accumulated on Sheerlegs Wharf and the respondent’s vessels. In the course of repairs, the respondents work was apt to cause pieces or drops of hot metal to fly into the sea. So their work was called off until they were assured it was safe to continue. They continued their work under this assurance. A fire broke out on November 1. Oil of this character was described as extremely difficult to ignite, but the most probable explanation was that a hot piece of metal must have fallen onto an inflammable object floating in the water, which set fire to the oil. The fire caused extensive damage to the respondents’ wharf and vessels.

Relief sought: Issues:

Material Facts:



Procedural History:

Judge ruled in favour of the Wagon Mound, that the fire was not reasonably foreseeable.

Appellant’s arguments: Result: Judge’s reasoning:

Bolton v Stone found that although foreseeable, the chances of it happening in the foreseeable future was infinitesimal. The House of Lords held that a reasonable man would have been justified in disregarding it and taking no steps to eliminate it. But it does not follow that it is justifiable to neglect a risk of such small magnitude. A reasonable man would only neglect such a risk if he had some valid reason for doing so. He would weigh the risk against the difficulty of eliminating it. Even if remote, there must be good reason for ignoring a risk. (In this case there is none)

If the activity which caused the injury to Miss Stone had been an unlawful activity, there can be little doubt but that Bolton v Stone would have been decided differently. What that decision did was to recognise and give effect to the qualification that it is justifiable not to take steps to eliminate a real risk

if it is small and if the circumstances are such that a reasonable man, careful of the safety of his neighbour would think it right to neglect it. In the present case there is no justification whatever for discharging oil into the Sydney Harbour. Not only was it an offence to do so, but it involved considerable loss financially. If the ship’s engineer had thought about the matter, there could have been no question of balancing the advantages and disadvantages. From every point of view it was both his duty and his interest to stop the discharge immediately. Unlike Bolton, where there was a good reason for taking the risk.

The only question is whether a reasonable man having the knowledge and experience to be expected of the chief engineer at The Wagon Mound would have known that there was real risk of the oil on the water catching fire in some way: if it did, serious damage to ships or property was not only foreseeable, but very likely. There is breach of duty, there is no remoteness. Only question is foreseeability.

Walsh J said that ‘if a real risk is remote then it must be held to be not reasonably foreseeable. Their Lordships reject this view. If a real risk is one which would occur to the mind of a reasonable man in the position of the defendant’s servant and which he would not brush aside as farfetched, and if the criterion is to be what that reasonable man would have done in the circumstances, then surely he would not neglect such a risk if action to eliminate it presented no difficulty, involved no disadvantage, and required no expense. ???

In the present case the evidence shows that the discharge of so much oil onto the water must have taken a considerable time, and a vigilant ship’s engineer would have noticed the discharge at an early stage. The findings show that he ought to have known that it is possible to ignite this kind of oil on water, and that the ship’s engineer probably ought to have known that this had in fact happened before. The most that can be said to justify inaction is that he would have known that this could only happen in very exceptional circumstances. But this does not mean that a reasonable man would dismiss such a risk from his mind and do nothing when it was so easy to prevent it. If it is clear that the reasonable man would have realised or foreseen and prevented the risk, then it must follow that the appellant is liable in damages. Liable, because though remote, unlike Bolton, there was no good reason to take that risk. It was easy to stop the risk being taken.

What can be learned from this case....