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Torts Keyed to Prosser
Overseas Tankship, (UK.) Ltd. v. Morts Dock & Engineering Co., Ltd. “Wagon Mound No. 1”
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Morts (P) owned and operated a wharf in Port of Sydney, Australia. Overseas (D) owned a ship, Wagon Mound, which was anchored about 600 feet away. It discharged furnace oil carelessly resulting in a large oil spill which spread to the wharf. By itself it caused no major damage. However, floating cotton waste was accidentally set afire by molten metal dropped by Morts’ workmen. This caused a serious fire by igniting the furnace oil, with substantial damage to the wharf. The court found that the ignition of the oil was not a fact which could be reasonably known by Overseas. Morts was awarded damages. Overseas appealed to the Privy Council, which is the court of appeals for all nations of the Commonwealth except England.
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