In re Arbitration Between Polemis and Ferness, Withy & Co. 1921

COA England - 1921

Facts:
Ds rented a vessel from P to carry cargo consisting of benzine or petrol in cases.
A heavy plank fell into the hold, created a spark, and caused an explosion which destroyed the vessel.
Ps sued D in negligence for the cost of the vessel.

Procedural History:
Lower court found for P.
COA affirmed.

Issues:
If the negligent act might cause damage but is of a different kind than what one would expect, is D liable for this damage?

Holding/Rule:
If the D's act would or might probably cause damage, the fact that the damage it causes is not the exact kind of damage one would expect is immaterial, as long as the damage is in fact directly traceable to the negligent act, and not due to the operation of independent causes.
The fact that the exact operation of the damage was not foreseen is not material if the negligence would probably cause damage and the harm was the direct result of the negligent act.

Reasoning:
The damages claimed are not too remote.
The damage was a direct result of the negligence of the Ds.
Consequences which follow in unbroken sequence, without an intervening efficient cause, from the original negligent act are natural and proximate.

Ryan v. New York Central R.R. Co. 1866

COA NY - 1866

Facts:

• D negligently set fire to its woodshed. P's house was situated 130 feet from the shed and took fire as well. P sued D for property damage.

Procedural History:

• Trial court dismissed P's claim.
• Appellate court affirmed.
• NY COA affirmed.

Issues:

• How far should liability be extended when a D causes some damage which spreads further than the D could have reasonably foreseen?

Holding/Rule:

• Liability for a D's negligence extends only to the immediate and foreseeable (proximate!) consequences of his actions.

Reasoning:

• Ds can only insure their own goods; they can't take out insurance on their neighbor's goods. Thus, they shouldn't be liable for their destruction.
• In this case, the damage was too remote and unforeseeable to be attributed to the D.