Kinsman Transit Co. v. City of Buffalo
Facts
Because of the negligence of Kinsman Transit Company and Continental Grain Company, the Shiras broke loose, struck the Tewksbury, and both vessels drifted into the Michigan Avenue Bridge, whose collapse created a dam and ice jam that disrupted river transportation for about two months. Cargill had wheat stored aboard the Gillies below the bridge and could not move the vessel upriver to unload it, so it obtained replacement wheat elsewhere and incurred extra transportation and storage-related costs. Cargo Carriers was unloading corn from the Farr above the bridge when the vessel broke loose after being struck; although the cargo was undamaged, an ice jam and the unavailability of tugs trapped below the bridge required specially rented equipment to continue unloading. Neither claim sought recovery for direct physical damage to the vessels involved in these particular losses.
Issue
Are Cargill's and Cargo Carriers' additional expenses, incurred because the bridge collapse and resulting obstruction disrupted river traffic, recoverable in negligence? More specifically, were these losses too remote or indirect a consequence of the defendants' negligence to permit recovery?
Rule
A plaintiff may be denied recovery for losses caused in fact by negligence when the relationship between the negligence and the injury is too tenuous, remote, or indirect. Foreseeability of some general disruption does not by itself require liability once the claimed consequence becomes only fortuity rather than a sufficiently direct result of the negligent act.
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If Lakefront Milling sues the negligent tug operator for the extra shipping costs, which is the best result?