October 5, 2025
Overseas Tankship (UK) Ltd v The Miller Steamship Co [1966] UKPC 10 (Wagon Mound no 2)
Ship charterers negligently spilled oil in Sydney Harbour. Welding sparks ignited cotton debris floating on the oil, causing a fire that damaged the claimant’s ships. The court found that although the risk of fire was slight, it was a real and foreseeable risk, making the charterers liable. Facts The appellants (defendants) were the charterers of the ship, the Wagon Mound. The ship’s engineers negligently allowed a large quantity of furnace oil to be discharged into Mort’s Bay, Sydney Harbour. The oil spread over a significant part of the bay and congealed on the water’s surface around the respondents’ (plaintiffs’) ships,



