Professional Documents
Culture Documents
MODERN L A W R E V I E W
Volume 25
January 1962
No. 1
THE WAGONMOUND
The Wagon Mound (as the decision will be called for short)
involved liability for damage done by fire, like many of the leading
English and American cases on remoteness of damage. The
defendants, charterers of the as. Wagon Mound, while taking on
bunkering oil at the Caltex wharf in Sydney Harbour, carelessly
spilt a large quantity of oil into the bay, some of which spread to
the plaintiffs wharf some 600 feet away, where the plaintiffs were
1
4
6
A.C. 388.
2 [I9211 3 K.B.560.
Son, Ltd. V. France, Fenwick d Co., Ltd. [1911] 1 K.B. 114:
Lynch v. Knight (1861) 9 H.L.C.577; Olaugow Corporation v. Muir 431
A.C. 448; Bourhill v. Young [l943] A.C. 6a; Wooda v. Duncan [1946] A.C.
401; Hadley v. Baxcndals (1864) 9 Exch. 341.
[1944] K.B. 718.
See R. v. Northumberland Compenaatwn Appeal Tribunal, am p. Shaw [1951]
1 K.B. 711; Armstrong v. Strain [1961] 1 T.L.R. 856; King v. Phillips
[issa] a AH E.R.469.
[ 19611
i.e., Cory d
1
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JAN.
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THE EFFECT
OF
V O ~ .2n
.
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33
34
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JAX. 1963
the courts would almost certainly follow The City of Lincoln and
the other cases in line with it.s7
Dr. Williams, though not Dr. Goodhart, is even prepared to
allow a limited scope to the doctrine of transferred or (derivative negligence, and suggests that a defendant negligent towards
A in respect of some kind of harm should be liable for the same kind
of harm suffered by B, to whom injury is not foreseeable. He
thinks that some such doctrine is necessary t o prevent the risk
theory from producing absurd results, though he recognises the
difficulty of reconciling it with the Bourhill v. Young areaafrisk doctrine. If X fires a t Y in a remote region intending to
kill him,misses him and kills 2,Dr. Williams would, if I understand
him correctly, be ready to hold X liable for 2s death, even though
X could not reasonably expect that any person (other than Y)was
nearby. Since X would, according to the books,a@be guilty of
murdering 2, many will think this a sensible conclusion despite its
offence to the pure doctrine of the relativity of negligence (or
intention).
Both Dr. Goodhart and Dr. Williams think that Re Polemis
itself is wrong, though here again Dr. Williams is ready to extend
liability to consequences which many would regard as unforeseeable. Thus, he approves of the decision of the Privy Council in
Great Lakes 8.8. Co. v. Maple Leaf Milling Co.,O which has often
been cited as an application of the Pdemis rule. In that case the
defendants, in breach of contract, failed t o lighter a ship a t a quay
at the time stipulated and were held liable for the serious damage
caused t o the ship when the water level fell and the ship settled on
a large anchor which no one knew t o be there. Dr. Williams
defends this decision on the ground that a defendant does not
escape liability for a consequence unless a reasonable man, considering the possible outcome of conduct, would safely assume that
it would not occur, whatever else might happen. A competent
observer, in the Great Lakes case, assessing the probable damage,
would, he suggests, have to give a wide range of estimate because
the bed on which the ship settled had not been inspected; whereas,
in R e Polemis, he would have ruled the possibility of fire completely
out of c a l ~ u l a t i o n . ~This
~ explanation is not altogether a happy
one, since it might be said of R e Polemis that the stevedores who
dislodged the plank had not inspected the hold t o canvass the
possibilities. At any rate, to support the Great Lakes case as consistent with the foresight principle involves, as Dr. Williams himself
recognises, two different standards of foresight : a restricted one
when the question is whether a certain risk is one that a reasonable
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41
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man mould have foreseen and guarded against (i.e., one of the
reasons for being careful) and a more extensive standard when the
question is whether a consequence is foreseeable so as to make
a defendant liable for it.
If Dr. Williams is correct, the principal effect of adopting the
foresight rule would be to substitute one verbal formula for another.
In place of an avowedly indeterminate criterion of directness, we
shall have an apparently precise, but misleading, criterion of foresight. In view of the several concessions that he makes to the need
to operate the foresight principle so as to produce sensible results,
one naturally wonders why the principle should command such
support as a universal solvent of remoteness problems. It is not
easy to reconcile his views on the egg-shell slrullyyrule, ulterior
harm, transferred negligence, and the Great Lakes case with his
claim t h a t i n future, broadly speaking, there will not be two
questions in the tort of negligence, 8 question of initial responsibility
and one of proximity, but only one question-was the defendant
negligent as regards this damage.4J The explanation ie almost
certainly to be found in what he describes as the strong
intellectual attraction 44 of the rbk principle.
THER.ELATIVITYOF NEGLIGENCE
The intellectual attraction of the foresight principle is founded
mainly on the alleged relativity of negligence to particular
consequences.46 We cannot, it is said, properly speak of negligence
in the ah: an act may be negligent in regard to one consequence, but not in regard t o another. Since negligence consists
in failing to guard against some foreseeable risk, we can, on this
view, characterise an act as negligent only in regard t o foreseeable
consequences. Similar reasoning seems to underly the common
assertion that the reason for impoaing a duty (Le., risk) should
logically limit liability for breach of it.4e
In considering the force of arguments of this sort, it is important
to distinguish between those risks which may fairly be expected to
influence behaviour and the consequences of such a risk materialising. In real life people do not ordinarily reflect on the ultimate
consequences of their actions and could not reasonably be expected
to do SO. If we adjust our behaviour out of regard for others, we
generally do so because we realise that some foreseeable event, such
as skidding in a car or the action of others subject to our control, is
dangerous. Though appreciation of danger will sometimes depend
on a consideration of the possible consequences of the event in
43
44
5
At p. 179.
Ibid.
See Holdaworth, History of English Law, viii, 463; Goodhart, (1930) 89 Yale
L.J. 449, 465; Goodhart, Esaa s in Jurisprudence and the Common Law,
Chap. 6; Williams, (1961) 77 L.Q.R. 17b179; The Wagon Mound [lSSl]
A.C. 988 at 426-426.
Williams, loc. cit., 179-180.
T A X . 1962
49
e.g., where the duty arises from some special relationship, as in Paris V.
Stepncy B.C. [l96l] A.C. a67.
In Glasgow Corporation v. Muir [1943] A.C. 448, it was alleged that the
appellantr were negligent in allowin a tea urn to be carried through a
passage-way thronged with children. %he urn was drop d and scalded the
respondent, but there wan no evidence that it was c a u s e rb y jostling. Lord
Romer pointed out that failure to guard y a i n s t jostling would not make the
a pellant~,liablefor any droppin of the urn caused, say. b a sudden fall of
pfaster:
the appellants can onyy be fixed with liability i f it can be shown
that there materialired a,firk that ought to have been within the appellants
reasonable contemplation
(et 467-468). The acme p i n t was stressed by
Greene M.R. and du Parcq L.J. in Aldham v. Uncted Dairies (London),
Ltd. [1940] 1 K.B. 607 at 611, 614, and again by Lord du Parcq in Sewle v.
Wallbank [l947] A.C. 841 at 860.
Cf. Hart and Honor& Causation in the Law (1969)lO%ll,$ who argue that
causal connection must be shown between the harm, and all those enpecta
of the defendants conduct which made it wrongful (at 111). This is said
to depend on some general connection between a set of conditions, including
tP wron ful act, and harm of that mrt. Though the authors avoid the word
risk, $8 effect of their requirement would aeem to e,! the same (in negligence at least) as the rule suggested in the text above.
General connection
makes an event foreseeable.
VOL.
25
31
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JAN. 1962
the scienter rule for injuries caused by a wild animal that the animal
should have a propensity to attack mankind. But liability under
the rule is not confined to injuries caused by an attack.s2
REMOTENESSOF DAMAQE
Those who reject the foresight principle as a universal solvent of
causal problems do not of course deny that there are limitations
on liability for the consequences of negligent conduct. The correct solution of a remoteness problem is felt, rather than deduced
from formulated principle^.^^ The merit of a vague criterion like
directness, with its appeal to common sense, is that it allows
scope for the intuitive judgment. The efforts of legal writers, in
the vast literature on the subject, to tie the courts down to precise
rules has probably been misguided. Those who welcome broad
standards of reasonableness in the law of negligence and the uncertainty of outcome which they entail ought not to deny the
courts a measure of discretion in remoteness problems.
It would be a mistake however to conclude that the only alternative to the foresight principle is a wilderness of uncertainty and
arbitrary judgment. If we have regard to what the courts have
actually done in the cases, certain fairly uniform principles will be
found to run through the decisions. Some of these principles are
those which underly the attribution of cause in ordinary lang~age.~
Others, founded on considerations of policy, turn on the nature of
the damage suffered and the manner in which it has been brought
about.
CAUSALRELEVANCE
As we have already seen, a defendant will not be liable in negligence
for harm which materialises through an event which he could not
have foreseen.65 Though a rule making a wrongdoer liable for all
harm that would not have occurred but for the wrongdoing is by
no means inconceivable, and indeed is found in some fields outside
52
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54
Id
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80
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61
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JAN. 1962
11
IMMEDIATEPHYSICAL
HARM
If an event occurs which the defendant ought t o have foreseen
and guarded against, the cases show that he will be liable for any
physical harm which results from the operation of that event on
conditions actually present a t the time, whether those conditions
are foreseeable or not. Smith v. L.
S.W. Ry.,Ob Re Polemis ''
and the Gfeat Lakesb8 case are well known illustrations of this
To this extent the defendant must take the plaintiff and
the consequences as he finds them. That there are not more
decisions in the reports illustrating the rule is almost certainly due
to the fact that it would not occur to the ordinary man to question
the justice of it. It is surely signi5cant that there is no English
decision inconsistent with the rule suggested, though there must
have been innumerable accidents where unexpected factors have
so far as it turned
produced unlikely results. In Sharp V.
on negligence, the defendant, who washed a van in a street, did not
know that the sewer grating was obstructed by ice and therefore
mas not negligent in respect of the risk of ice forming."
It is perhaps possible to imagine cases where the rule would
seem to operate harshly. Dr. Williams cites the example of the
baker in whose house the Great Fire of London ~ltarted.'~ But
calamities of this sort do not as a rule give rise t o legal claims. The
practical limit of a man's liability is, in any case, the extent of his
fortune. An uninsured defendant can be financially ruined by a
single award of damages, even under a foresight rule of remoteness.
It is, moreover, not easy t o Bee how a court, when harm has
in fact occurred, could in practice distinguish between that part
of the harm which is foreseeable and that part which is not. If a
fire started by sparks from a locomotive spreads to the stubble
'6
'7
'8
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'1
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VOL.25
fields of A, B, C, D, E and F in turn, are we reriouely to contemplate that a court, may hold that the stubble fields of, ray, E
and F are outside the pale of a reasonable man's foresight?
LIABILITY
FOB ULTEBIOB
HARM
Ulterior harm is a convenient term to describe harm caused or
aggravated by some contingency which occurs after the event
which the defendant ought to have foreseen and guarded against
and which is causally independent of that event. Examples would
be where a ship damaged in a collision alters course and strikes
a stray mine, or where a man run down by the defendant's
negligence is hit on the head by a falling tile while on his way t o
hospital, or where some infection enters a slight wound and causes
death, or where a person suffers injury in trving to rescue someone
endangered by the defendant's negligence.
It need hardly be said that liability does not extend to all ulterior
h a m . The negligent motorist, in the example above, would clearly
not be liable for the injuries caused by the falling tile, even though
the plaintiff would not have been at the point where the tile fell
but for the original harm.7S Mere cause in fact is not s d c i e n t to
create liability. The principle running through the cases seems
to be that a defendant is liable for ulterior harm only if the wrongful state of affairs brought about by his negligence exposes the plaintiff to a special risk of injury from the sort of contingency which
causes the ulterior
The common sense notion underlying
this rule is that of causal potency; the defendant's negligence renders
the plaintiff specially vulnerable to harm from the sort of contingency which occurs and therefore is the cause of it.
The defendant would thus be liable, in the example cited, for
death caused through infection entering a wound, since the wound
exposes the victim to a special risk of harm from contingencies of
On the other hand, to alter course as the result of a
this
collision does not ordinarily involve any special risk of hitting a
mine and the loss of the ship would therefore be too remote.78 A
good illustration of the rule under discussion is The City of
Lincoln,77 which was referred to earlier." The effect of losing compass and charts in the collision was to expose the plaintiffs' ship
to a special risk of running aground and therefore the ulterior harm
73
74
75
76
77
78
,JAN. 1962
13
was not too remote. So, too, if the nature of the damage caused by
a collision renders a ship less able to resist the force of a gale, then
the defendant will be liable if the ship is driven ashore by a storm.'e
The contingency which causes the ulterior harm may be the
action of some third party. If the defendant runs the plaintiff
down and the plaintiff is struck by another car while lying in the
roadway, the defendant would clearly be liable for the ulterior
harm. American and Canadian courts have also held defendants
liable for property stolen from unconscious victims,s0 and there is
little doubt that an unconscious victim is exposed to a special risk
of robbery. As regards supervening medical negligence, such
English authority as exists seems to be against liability,s1 though
here again American and Canadian courts have held the original
wrongdoer liable.8a Liability ought to turn on the nature of the
supervening negligence and its relation to the original injury. If
the plaintiff is scalded in hospital by an improperly-stoppered hotwater bottle, the original wrongdoer ought not to be liable. But
if the defendant seriously injures the plaintiff's leg and surgical
negligence is responsible for his losing a leg that with care would
have been saved, then the defendant ought to be liable. Whatever
the position as regards supervening medical negligence, it is, at any
rate, clear that if ordinary medical treatment of an injured person
causes harm, because of some unusual condition which could not
have been detected, the original wrongdoer will be liable for it.'J
The abnormality of the contingency which causes the ulterior
harm is probably no bar to liability if the plaintiff is in fact exposed
to a special risk of harm from contingencies of that sort.84 A person
who negligently starts a fire would, it is thought, be liable for any
spread of the fire, whether it is caused by a normal breeze or by
a quite extraordinary gale.8s Similarly, if infection enters a wound,
it is probably irrelevant whether the infection is a common or
exceedingly rare one.
The special risk of ulterior harm that a person is exposed to
often arises from some action taken by the plaintiff himself, or
79
80
81
83
83
84
88
The Despatch (1860) 14 M0o.P.C. 83. See also Leylmd Shipping Co., Ltd. V .
Norwich Union Fire Insuranas Society, Ltd. [1918] A.C. 360.
Prosser, Law of Torts, 2nd ed., 141-142; Pattcn V. Silberschein [19361 3
W.W.R. 169. Contra: Duce v. Rourke [1951] 1 W.W.R. 806 (N.Y.).
Hogan v. Bentinck West Hertle Collieries, Ltd. [1949] 1 All E.R..688.
Wright, Casea on the Law of $orb-, 2nd ed., 432-436; Prosser, Law of Torts,
2nd ed., 2.30.
Bloor v. Lieerpool Derricking d Carrying Co. [1936] 3 All E.R. 399, 402 ( p e r
Oreer L.J.).
The American cases aeem to support this suggestion: see Prosser, Law of
Torts, 2nd ed., p. 273, where he atresees the importance of special
susceptibility.
I n The Despatch (1860) 14 Moo.P.C. 83, where a damaged ship wan driven
ashore by a storm, the court did not concern itself with the question whether
the storm wae abnormal. I n the American case, Johnson V . Kosmos Portland
Cement Co., 6 Cir. 1933, 61 F.2d 193, the defendants negli ently left explosive vapour in a barge. The vapour was ignited by a bolt o f ligtrtning. Thr
defendants were held linble.
14
VOL.
26
some third person, after the event which the ddendant ought to
have guarded against. The rescuer, for example, is exposed to risk
only because he undertakes the rescue. The rule here seems to be
that the defendant is liable if the action taken is a reasonable
response to the actual situation brought about by his negligence
and if the response exposes the plaintiff to a special risk of harm.
The response may be that of the plaintiff or some third party, and
it may range from a purely instinctive reaction, such as clutching
a t a person threatened with injury or throwing away a squib, to
a considered judgment of the best course of action in a certain
situation.sb
The " rescue cases y y are good illustrations of this principle. The
risk taken must not be disproportionate t o the harm which the
rescuer seeks to avoid. These cases are sometimes said to turn on
the foreseeability of the rescuer's intervention, but it is impossible
to accept this explanation. Let us suppose that I take an inexperienced boy climbing in a remote region where I have no reason
to expect any other person to be within many miles of us. By my
negligence I get the boy into a perilous position from which I am
unable to extricate him myself. Suddenly, another climber appears
and is injured in rescuing the boy. It is very difiicult to believe
that the courts would dismiss the rescuer's claim against me on
the ground that I could not have foreseen that he was likely to
come on the scene. If the outcome turns, as suggested, on the
reasonableness of a person's response to the situation which actually
confronts him," foresight of the likelihood of a rescuer is
irrelevant.88 It would be relevant only in a case where a person
puts himself in peril in considering whether a duty is owed to others.
The common-sense notion underlying these " response cases
is that the defendant, in a broad sense, made the actor respond as
he did. This is particularly obvious in those cases, like Scott v.
86
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JAN.
1962
15
SHOCK
NERVOUS
Injuries attributable t o shock present no special problem where the
shock is caused by or follows some direct impact. Abnormal
susceptibility in such a case is no bar t o recovery. But fear of
fraudulent claims, difficulties of proof and reluctance to place too
heavy a burden on human activity, have made the courts cautious
in allowing recovery for injuries caused by shock where there has
been no direct physical harm. Most American courts do in fact
insist on some impact as a condition of liability.Oa Though the
scope of liability in English law is still uncertain, the general effect
of the cases seems t o be that liability in negligence is limited to
cases where the plaintiff suffers shock through fear of injury either
a@
00
01
82
03
16
VOL.25
LIABILITY
FOR PECUNIARY
Loss
Liability for pecuniary loss caused by negligence is also subject to
special limitations which cannot be explained on causal grounds.
If the damage suffered is purely pecuniary, it is of course exceptional for there to be any liability at all in negligence. Insurers,
wives, partners and others who sutler pecuniary loss as the result
of physical harm negligently inflicted on another person have no
remedy against the wrongdoer.*' The only exceptions of any practical importance are actions for loss of services and consortium,
DuZieu V. White d SOM [1901] 2 K.B. 669; Hambrook v. Stokes Brox.
"251 1 K.B. 141; Bourhill v. Young El9431 A.C. 92; King v. Philli s [1953]
1 Q.B. 429; Doolcy V. Cammell Laird d Co., Ltd. 19511 1 Lloyd's He 271.
O u m s v. Lioerpool Corpn. [l939] 2 K.B. 894, which extended liability e! ond
injuriee caused by fright, can hardly survive the criticiam of it by the d u n e
of Lords in Bourhill v. Young [1948] A.C. WJ. In Schneider v. Eisoaiich
[I9601 2 Q.H. 430, there wan impact end a breach of dut was made out.
0 6 The Court of Appeal in Hambrook v. Stoker Bros. [&%I
1 K.B. 141 and
King v. Phillip [l968] 1 Q.B. 429 thought that there would be no liability
in negligence for shock caused by hearing of an accident.
97
The refusal to recognine such indirect shocks is not based on the argument
that such a consequence ie not reasonably foreneeable, but is justified on the
ground tt?t the law must drew a line which is practical one for ordinary
urposea : Goodhart (1944)8 Cam.L.J. 266 a t 278.
$ 8 Rambrook v. Stoker Bror. [1925] 1 K.B. 141; Dooley v. Cammell Laird h
Co., Ltd. [196l] 1 Lloyd's Rep. 271; Richards V. Baker [1948] S.A.S.R. 245.
99 Simpson v. Thom on (1877)8 A
.Can. 279; Bert v. Samuel Foz d Co., Lid.
[l9521 A.C. 716; Burgess v. %Er6nce Nightingale Horpital [l95S] 1 Q.B.
349; Cattle v. Stockton Woterworks Co. (1875) L.R. 10 Q.B. 463; SociLiL
Anonyme de Remorquage d HLZice v. Bennetts [1911] 1 K.B. 243.
94
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JAS.
1962
17
INTEBVENLNO
ACTS
The rules considered earlier make it unnecessary to devote special
treatment to the effect of intervening acts in remoteness problems.
Most ot the cases involving intervening acts have been concerned
with causal relevance. It waa suggested earlier that these present
no special problem.' Those which do not involve causal relevance
would seem to be covered by the rules governing liability for ulterior
harm.' The defendant will be liable for harm caused by an intervention if the plaintiff is exposed to a special risk of harm from
1
The Argentino (1888) 13 P.D. 191; (1889)14 App.Cas. 519; The Oreta Holme
[la971 A.C. 596; The Edison [lQSS] A.C. 449; The Kate [l699] P. 165; The
Racine [1906] P. 273; The Harnonider [lW]
P. 1.
The Ediaon [1933] A.C. 449.
In the cases referred to in note 1 sbove no distinction in drawn between liability
4 Supra, p. 10.
6 Supra, p. 12.
in contract and tort.
18
VOL.
25
JAS.
1962
19
seeing the blood in the road, and it is difRcult t o avoid the conclusion that this was the crucial feature of the case. One is under
no duty to avoid upsetting others by loud noises and the sight of
blood. It was suggested earlier that liability for nervous shock
seems in fact to be confined to injuries caused by fright.
Apart from other objections, the area of risk doctrine is
hardly consistent with some of the results favoured by supporters
of the foresight principle. The Privy Council, in The Wagon
Mound,l seems t o have thought that the extent, as opposed to the
kind, of harm need not be foreseeable,I2 and this view is also supported by Dr. Wil1iams.l3 The area of risk doctrine would exclude
this concession to common sense if the plaintiff, or one of the plaintiffs, is outside the area of risk. It would also exclude any
application of the doctrine of transferred negligence, which Dr.
Williams would also allow in a qualified form.
There is of course a quality of high artificiality in the notion of
a reasonable man defining the area of risk affected by his activities.
If the government prohibits the export of ginger beer, are we to
suppose that an Italian lady who finds a decomposed snail in one of
a few bottles which find their way abroad would be denied a remedy
on the ground that she was outside the area of risk ? Or that, when
a wheel comes off a vehicle and runs freely down the road, that there
is some radial limit, founded on foresight, beyond which liability
will not follow the wheel ? The area of risk )doctrine is not one
of the finest flowers of our jurisprudence.
Lord Atkins famous neighbour dictum in Donoghue v.
Stevensonjs which was taken, in Bourhill v. Young, to support the
doctrine, was put forward as a general explanation of the scope of
negligence liability, i.e., foresight of risk gives rise to a duty, not
as a negative test limiting liability t o those within the area of risk.
The whole question is confused, as Dr. Williams recognises, by a
failure to distinguish between duties of positive action (i.e., liability
for omissions) which are always owed to spec& people and duties
which attach to active conduct, which are owed to people at large.
The only case since Bourhill v. Young in which the area of risk
doctrine has been invoked to deny liability is King v. Phillips,l
also a claim for nervous shock. In other cases where the doctrine
might have been expected to defeat a claim, lip service t o it has
been preserved only by attributing quite extraordinary foresight to
the defendant.In
11
13
15
17
18
12 At 416, 426.
[1961] A.C. 388.
14 Ibid. 187.
77 L.Q.R. 187-190, 193-197.
1 77 L.Q.R. 187-188.
[1932] A.C. 662 at 680.
[1968] 1 Q.B. 429.
e.g., Carmorthenshire C.C. V. Lewis [la661 A.C. 649. %me, L.J., in the
Court of Appeal, thought that almost superhuman vision would h8ve been
reauired to forenee the eocident for which the defendants were held liable bv
thi Houre of Lords. Another mode of escape from the are8 of risk doctrine
is to say that B duty is owed to any person who might happen to be at 8
certain point: nee Farrugia V. 0 . W . Ry. [1947] 2 All E.R. 666 at 667.
20
VOL.25
CONTRACTAND TORT
There is a long line of authority for the view that contract and tort
are governed by the same rules of remoteness,19 and there is little
doubt that this is so,'O Many have thought that this throws doubt
on the Polemis rule, on the ground that it clearly conflicts with the
rule in Hadley v. Baxendale.zl But this conflict is apparent rather
than real.
Hadley v. Baacndale and nearly all the leading cases on remoteness of damage in contract have in fact involved claims for purely
pecuniary loss, Since the primary function of the law of contract
is to secure economic expectations, this preoccupation with liability
for pecuniary loss is not surprising. In such cases liability is
limited to those items af pecuniary loss which follow in the ordinary
course of things from the breach.12 I n other words, the rule is the
same as that which governs claims for pecuniary loss in negligence.
It is of course well established that damages for physical harm
may be awarded for breach of contract, if the breach does in fact
cause such harm. Though the cases and textbooks do not expressly
distinguish between claims for pecuniary loss and claims for physical
harm, it is reasonably plain from what the courts in fact do that
claims for physical harm in contract are governed by the same rules
of remoteness as claims for physical harm in negligence." The
Great Lakes case,p4 which was discussed earlier, was a claim in
contract for physical harm and seems to be a straightforward
application of the rule that a defendant is liable for all harm caused
by the operation of an event (i.e., the breach) on unexpected conditions existing at the time.25 R e Polemis itself has heen regarded
by some as a claim in contract, and it is dimcult to believe that the
form of action could have affected the outcome. Innumerable
claims have been brought for physical harm caused by breach of
express or implied terms in contracts for the sale of goods and they
have always been dealt with in the same way as claims in negligence,
with which they have often been coupled." There seems to he no
reported instance of a claim in contract for physical harm caused
by the operation of the breach on existing conditions failing
because the damage was not foreseeable. Though section 58 ( 8 )
of the Sale of Goods Act provides that the measure of damages for
The catieti are listed in Salmoyl, Tortr, l%h,ed., 741.
The effect of the so-called second rule in Hadrey v. Basendale (1854) 9
Exch. 341, is outside the scope of this brief discussion of remoteness in con.
tract and tort, since it hee no bearing on the alleged conflict between Re Polemis
and Hadley v. Bazendale.
2 1 (1854) 9 Exch. 341.
? a Cheshire & Fifoot, Law of Contract, 5th ed., 498-512.
23 See Hart & Honor& Causation in the Lam (1959) 281-287; Porter, 5 Cam.L.J.
1- A6-189.
-- - - - .
14 (1924) 41 T.L.R. 21 (P.C.).
25 See alRo Vails v. HOb80tt (1933) 149 L.1'. 283, where it wati said. in holding
a contract breaker liable
physical damage he cor!d not have foreseen, tha?
the Hadley v. Bazendale ordinary course of things formula allowed recovery
for all " direct damagen.
2' See Atiyah, The Sale 01 Good8 (1957), 191.
19
10
JAN. 1962
21
CONCLUSIONS
Looking back over the development of the law of negligence in
recent years, one is struck by the unfortunate results which have
followed from exaggerating the importance of foresight in negligence
problems. Four landmarks stand out: the attempt of Lord Atkin
in Donoghue v. Stevemonal to rationalise the scope of negligence
in terms of foresight; the "area of risk" doctrine invoked in
Bourhill v. Young 3 2 ; the foreseeable possibility /probability distinction adopted in Bolton v. Stoneaa; and now the foresight rule of
remoteness adopted by the Privy Council in The Wagon
The objections to Lord Atkin's generalisation are well known
and need not be dealt with here. The factors that give rise to
and limit liability for negligence are too complex to admit of any
such simple explanation. Some of the objections to the " area of
risk " doctrine have been dealt with in this article.as The Bolton
v. Stone distinction has been criticised elsewhereae and seems in
fact to have been repudiated by the House of Lords in a later case.a7
The harvest of The Wagon Mound is yet to come.
Generalisations of the character found in the four cases mentioned do not make the law more certain, but rather the reverse.
AS a, guide for the uninitiated to the law of negligence, Lord Atkin's
" neighbour " dictum is merely misleading.
So, too, the foresight
principle of remoteness, if adopted by English courts, will simply
21
28
Z*
50
Bostock (1902) l.8 T.L.R. 317; Dee Conrercancy Board v. Conmll [l928] 2
K.B. 159; Le Blanche v. L. d N.W. &. (1876)1 C.P.D. 286.
Sayerr v. Harlow T1.D.C. [1968] 2 All E.R. 342. The Court of A peal held
that nothing turned on whether her claim w m regarded a1 being for breach
of contract or in tort for negligence.
[1932] A.C. 562 at 680.
*a [l943] A.C. 92.
[I9611 A.C. 850 at 861,868,866.
[l96l] A.C. 888.
Su a. p. 35.
" &e
Tort of Negligence " (1953) Current Legal Problems, %6-249.
Carmarthenshire C.C. v. Lewis [l966] A.C. 549 at 665.
22
VOL.
25
conceal from the student the actual operation of the law. It cannot be seriously contended tl-.at the foresight principle will make
the outcome of disputes more predictable than in the past. The
advocates of the principle are far from agreed on the eilect it would
have. The borderline cases recorded in the reporte will still come
before the courts, and almost certainly be decided in the same way
as before, whatever the received formula. As remarked earlier,
the correct solution of a remoteness problem is felt rather than
deduced from formulated principles. The rules discussed in this
article are those which seem to underlie the actual decisions. It
is not suggested that they are or should be consciously applied.
It was said in The Wagon Mound that it is not cc consonant with
current ideas of justice that, for an act of negligence, however
slight or venial, the actor should be liable for all the consequences,
however unforeseeable and however grave, so long as they can be
said to be direct. )s8 Ones 5rst reaction to this opinion is to
wonder whether a jury, in The Wagon Mound, would have echoed
this view on current ideas of justice. In a matter like remoteness
of damage, it is difRcult to assess the justice of any general rule. So
much depends on the facts of each case and the circumstances of
the parties. But one can still venture to doubt the superior morality
claimed for the foresight principle.
In considering whether the principle is calculated, as seems to
be contended, to preserve a due proportion between fault and
liability, it is important to bear in mind that the burden of liability
which must be placed in the scales in any serious discussion of the
subject is the actual bill of damages that a defendant has to meet.
Since all are agreed that foresight is irrelevant in assessing the
measure of darnages for physical harm, it must be purely a matter
of chance whether the size of the bill bears any relation to the
defendants fault.
It is still often cheaper t o kill than to
maim. A momentary lapse in driving a car, or handling a gun,
may result in a bill of damages of E20,000 or more, even under the
foresight rule.
The foresight rule also takes no account of the heinousness of
the defendants fault. Though instances of negligence V ~ I Ygreatly
in their culpability, the foresight of a reasonable man, in theory
at least, is a constant. A judge or jury is likely to be more ready
to extend liability when the breach of duty is highly culpable. In
this respect there is much to be said for a more flexible rule which
would allow the court some discretion.
Insurance against liability and the ability of an enterprise to
shoulder a loss or pa88 it on to consumers are also factors which
should be taken into account in any serious discussion of the moral
claims of the foresight principle. There is growing support for the
view that enterprises should pay for the damage caused by their
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JAN.1962
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LL.B.;