Dominion Tankship owned a large tanker ship called The Erie Mistake that it operated on the Great

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Dominion Tankship owned a large tanker ship called The Erie Mistake that it operated on the Great Lakes. The ship arrived at the Port of Toronto carrying a cargo of Flamonol, a synthetic lubricant used by manufacturers. As a result of the captain's carelessness, The Erie Mistake rammed into a dock that Mortimer Docking owned. In addition to causing some structural damage to the dock, the accident punctured a hole in the side of the ship, which caused several thousand litres of Flamonol to leak into the water. The manager for Mortimer Docking asked if there was any danger that the Flamonol might catch fire. The captain of The Erie Mistake gave his assurance that Flamonol was entirely non-flammable. Mortimer Docking therefore began repair work on its dock. During the course of those repairs, sparks from a welding gun fell onto the Flamonol, which was still floating on top of the water. The Flamonol almost immediately burst into flames and the ensuing fire completely destroyed the dock. Mortimer Docking has sued Dominion Tankship. The company admits that the captain of The Erie Mistake committed a tort when he rammed into the dock, and it is willing to pay for that original damage. However, Dominion Tankship has also established that, at the time of the accident, there was no scientific evidence that Flamonol could be set on fire. It therefore refuses to pay for the additional damage that the fire caused. Is Dominion Tankship liable for destruction of the dock or merely for the damage caused by the original ramming accident? Explain your answer.

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Related Book For  answer-question

Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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