Torts Keyed to Prosser
In re Arbitration Between Polemis and Furness, Withy & Co., Ltd
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
The owners of a vessel chartered its use to the Appellants for the purposes of carrying, among other things, petrol to Casablanca. While unloading the cargo in Casablanca, a wooden plank fell into the hold containing the petrol and caused an explosion. The fire completely destroyed the vessel. The owners, charging the chatterers with negligence, claimed the value of the vessel from the charterers. The charterers responded that the fire was a remote consequence of their actions, so they are not responsible. The case was referred to arbitration and the arbitrators found that the fire was caused when the wooden plank hit metal and caused a spark. The arbitrators agreed with the charterers that the spark was an unforeseen consequence of the original negligence and therefore the destruction of the vessel was a remote consequence. The only damage the charterers should be liable for is the approximate damage done to the vessel by the falling wooden plank, not the damage done by the f ire. The owners sought review.
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