Facts:

 when defendant working on ship they  failed to turn off the one furnace tap. This caused oil to leak from the ship into the Sydney harbour. The leaking oil on the water surface drifted to the site where Morts were welding metal. A supervisor enquired to find out whether the oil was flammable, which he was assured that it was not. However, a spark from welding and mixed debris, caught fire from the spilt oil and this caused a fire to spread rapidly. This caused significant damage to Mort’s wharf.

Held:

 It held in this case it disapproved the direct consequence test in Re Polemis and established the test of remoteness of damage. If a forceable type of damage is present the defedent is liable for this extent of damage.but it occour unforceably so defedent is not liable for this damage.