The Wagon Mound (No 2)
''Overseas Tankship (UK) Ltd v The Miller Steamship Co'' or ''Wagon Mound (No. 2)'',. is a landmark tort case, concerning the test for breach of duty of care in negligence. 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). ''Wagon Mound (No. 2)'' should not be confused with the previous case of the ''Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd'' or ''Wagon Mound (No. 1)'',. which introduced remoteness as a rule of causation to limit compensatory damages. Facts Overseas Tankship chartered a freighter ship named the ''Wagon Mound'' which was taking on bunker oil at Mort's Dock in Sydney. The engineers on the ''Wagon Mound'' were careless and a large quantity of oil overflowed onto the surface of the water. After several hours the oil drifted and was around two ships owned by the Mil ...
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