Caltex Oil (Australia) Pty Ltd v The Dredge “Wilemstad” (1976) and Perre & Ors v Apand Pty Ltd (1999) has been important cases in the history of Tort Law.
Negligence is a complex term including advertent and inadvertent acts and omissions where there has been a failure to take reasonable care to prevent loss, damage or injury to others whom they could reasonably have foreseen might have been injured if that care was not taken. (Pentony at al. 2011)
There are different categories of negligence and the one concerning the above mentioned cases is Pure Economic Loss. A claim for ‘pure’ economic loss arises where the plaintiff has suffered economic loss which is not consequent upon any physical injury to person or property (Stewart & Stuhmcke, 2007)
Caltex Oil (Australia) Pty Ltd v The Dredge “Wilemstad” (1976) has been a one of the landmark cases, where the High Court reached a conclusion that damages could be recovered for economic loss not consequent on injury to personal property.
The facts of the case were: - * An oil refinery pipeline was damaged during dredging work in Sydney’s Botany Bay which connected an oil refinery at Kurnell, on the southern shore, with an oil terminal at Banksmeadow, on the northern shore * Both the refinery and the pipeline were owned by Australian Oil Refining Pty. Ltd. ("A.O.R.") and the terminal was owned by Caltex Oil (Australia) Pty. Ltd. ("Caltex"). * Caltex supplied crude oil to the refinery for processing, and the product was delivered to Caltex either into a vessel at the A.O.R. wharf or by way of the pipeline to the Caltex terminal. * Caltex, which used but did not own the pipe, was forced to transport oil by road and sea while the line was repaired * Caltex claimed these costs from the dredge owner and the
Bibliography: - Brendon Pentony, Stephen Graw, Jann Lennard, David Parker, 2011, Understanding Business Law, 5th Edition, LexisNexis Butterworths Pam Stewart & Anita Stuhmcke, 2007, Australian Principles of Tort Law, Cavendish Publishing Ltd Dr. Robert N Moles, Networked Knowledge, Law Reports, retrieved from http://netk.net.au/Tort/Case3.asp on 04.10.2011