The Wagon Mound (No. 2) [1967] 1 AC 617

Court: Privy Council

Basic Facts: Ds were charterers of the vessel, The Wagon Mound, which was anchored at a dock. Oil from the Wagon Mound vessel spilled, D’s employees failed to remove the spillage and later ignited, causing damage.

Issue: What standard of care is required to avoid negligence?

Held: D is liable in nuisance to pay damages to C. Reasonable person in D’s position would of known of the risk it ignited, the injury was also reasonably foreseeable.

• Lord Reid: The standard is whether a reasonable person would have foreseen the risk and taken steps to prevent it. If a risk is real but small, it may be justifiable to disregard it if eliminating it is disproportionately difficult. The risk of the oil igniting was significant, and no justification existed for not preventing it.