A vessel owned by Overseas Tankship (UK) Ltd (‘OT’), the ‘Wagon Mound’, was moored at Caltex Wharf on the opposite shore of the harbour, approximately 600 feet from Morts Wharf, to enable the discharge of gasoline products and taking in of furnace oil. ON 25 MAY 1966, the Privy Council delivered Overseas Tankship (UK) Ltd v The Miller Steamship Co Pty (The Wagon Mound No 2) [1966] UKPC 1 (25 May 1966). Overseas Tankship (UK) Ltd v The Miller Steamship Co or Wagon Mound (No. The Wagon Mound (No 1) should not be confused with the successor case of the Overseas Tankship v Miller Steamship or "Wagon Mound (No 2)", which concerned the standard of the reasonable man in breach of the duty of care. 519-21 [13.175] or here The Supreme Court of … A large quantity of oil was spilled into the harbour. Miller sued Overseas, the Wagon Mound ’s owner, under theories of negligence and nuisance. those where there was a real and substantial risk. The Judicial Committee of the Privy Council held that loss will be recoverable where the extent of possible harm is so great that a reasonable man would guard against it. Should the defendant be liable for damages which were not foreseeable? Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd or "Wagon Mound (No 1)" [1961] UKPC 1 is a landmark tort law case, which imposed a remoteness rule for causation in negligence.The Privy Council held that a party can only be held liable for damage that was reasonably foreseeable. 1) [1961] AC 388, the instant case concerned the test for breach of duty of care, rather than of remoteness in causation. 2)) [1963] 1 lloyd's rep. 402 Relevant Facts: Pl are two owners of 2 ships that were docked at the wharf when the freighter Wagon Mound, (df), moored in the harbor, discharged furnace oil into the harbor. Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd or "Wagon Mound (No 1)" [1961] UKPC 1 is a landmark tort law case, which imposed a remoteness rule for causation in negligence.The Privy Council held that a party can only be held liable for damage that was reasonably foreseeable. [1967] 1 AC 645, [1966] 3 WLR 513, [1966] 2 All ER 989, [1966] UKPC 2, [1966] UKPC 12 See Also – Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd (The Wagon Mound No 1) PC 18-Jan-1961 Complaint was made that oil had been discharged into Sydney Harbour causing damage. Issue Australia The Judicial Committee of the Privy Council held that loss will be recoverable where the extent of possible harm is so great that a reasonable man would guard against it (even if the chance of the loss occurring was very small). When molten metal dropped by Mort’s workmen later set floating cotton waste on fire, the oil caught fire and the wharf was badly damaged. 2 The Wagon Mound (No. State There was only a very small risk that it would ignite and would only do so in very unusual circumstances. The Privy Council held that a party can be held liable only for loss that was reasonably foreseeable. Overseas Tankship were charterers of a freighter ship named the Wagon Mound which was moored at a dock. Year The sparks from the welders caused the leaked oil to ignite destroying all three ships. He says that the Bolton decision found that it is justifiable not to take steps to eliminate a real risk if the risk of it is so very small that a reasonable person would think it right to neglect it. Wagon Mound was being refuelled and ship's engineers allowed oil to spill on water surface. The Judicial Committee of the Privy Council held that loss will be recoverable where the extent of possible harm is so great that a reasonable man would guard against it (even if the chance of the loss occurring was very small). The Wagon Mound (No 1) should not be confused with the successor case of the Overseas Tankship v Miller Steamship or "Wagon Mound (No 2)", which concerned the standard of the reasonable man in breach of the duty of care. Disclaimer: This work was produced by one of our expert legal writers, as a learning aid to help law students with their studies. The Miller Steamship Co. Pty. Overseas Tankship (UK) Ltd v The Miller Steamship Co or The Wagon Mound (No 2) [1967] 1 AC 617 is a landmark tort case, concerning the test for breach of duty of care in negligence. 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