⭐In re Arbitration Between Polemis and Furness, Withy & Co., Ltd.
Defendants chartered plaintiffs ship to carry cargo including cases of gasoline. While discharging, they dropped a plank into the hold, causing a spark that ignited the gas and completely destroyed the ship.
The arbitrators held that this damage could not reasonably have been anticipated from the falling of the board. However, some damage might have been anticipated, and thus defendants are liable for the £196,165.
Is defendant liable for the harm even though the type of harm wasn't reasonably foreseeable?
While the extent of the damage could have been foreseen, the type of damage could not.
The damage is too remote and could not be reasonably foreseen as a consequence.
Defendants are liable for all harm they directly cause as long as some harm is reasonably foreseeable.