Key Point
Damage/injury must be reasonably foreseeable to be actionable in negligence.
Facts
- Ds were charterers of the Wagon Mound
- Oil leaked from the Wagon Mound but D's employees let it spread as they thought that the risk of it catching fire on the water was remote
- When the oil caught fire, C’s wharf (Mort's Dock) was damaged
- The New South Wales Supreme Court ruled in favour of C on the basis that the Re Polemis rule was binding and as such damage directly flowing from D's tortious act is actionable despite not being reasonably foreseeable
Issue
Is the Re Polemis rule applicable?
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