Q: What is wagon mound case in tort of remoteness of damage ?

Ans: Wagon Mound Case

A vessel was chartered by appellant. When vessel was taking fuel oil at Sydney Port, due to negligence of appellant's servant large quantity of oil was spread on water. About 600 ft., the respondent was having workshop, where some welding and repair work was going on. After 60 hours that oil caught fire and whole workshop was destroyed and incurred heavy loss.

In this case, trail court applied test of directness and held appellant liable.

But after appeal, The Privy Council decided that the Test of directness is no good law and applied Test of reasonable foresight and held appellant not liable because foresight can not be extrapolated. 


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