Morts Dock & Engineering Co., Ltd. (Morts) (plaintiff) owned a wharf upon which it percreated repair job-related on various other ships. Morts provided welding and also burning methods. A ship owned by Overseas Tankship (U.K.) Ltd. (Tankship) (defendant) was docked at the Sydney harbor at a surrounding wharf to Morts’. During this time, Tankships’ ship leaked oil into the harbor. After the ship collection sail, the tide brought the oil near Morts’ wharf and also required its employees to cease welding and burning. Morts’ supervisor made some inquiries to identify whether the oil was flammable. After being told it was not, he instructed his employees to proceed welding and burning. A few days later, Morts’ wharf was damaged after a rag or piece of debris floating in the oil recorded fire. Morts brought suit against Tankship. At trial, the trial judge found that Tankship did not know and can not sensibly have actually been meant to know that the oil was qualified of being caught on fire as soon as spcheck out over the surface of water. Furthermore, the trial judge found that the oil led to slight damages when it was spread onto Morts’ wharf. The trial court granted judgment for Morts, and Tankship appealed.

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