NORTHERN IRELAND ROAD TRANSPORT BOARD v. CENTURY INSURANCE COMPANY, LTD.

(1942) 72 Ll L Rep 119

HOUSE OF LORDS.

Before Viscount Simon (Lord Chancellor), Lord Wright, Lord Romer and Lord Porter.

Master and servant-Contract of service- Divided employment - Negligence of servant in course of employment- Damage to property of third parties- Liability of insurers under policy taken out by employers (transport board) and covering such risks- Servant lent by transport board to hirers under agreement by board to supply to hirers tank lorries and drivers for carriage of petrol-Drivers to "accept and obey the orders of the [hirers] or their representatives regarding such delivery the payment of accounts and all matters incidental thereto and the [transport board] shall dismiss any employee of theirs disregarding or failing to obey such orders. . . . . Provided always that nothing herein contained shall be taken as meaning or implying that such employees of the [transport board] are in any way the employees of the [hirers]"-Tanker being used under agreement to deliver petrol to garage in Belfast-Discharge of petrol by hose into garage tank-Conflagration and explosion resulting from lighted match carelessly thrown away by driver after lighting cigarette-Damage to property -Liability of transport board-Whether driver at time of accident was acting as servant of transport board or of hirers -Whether driver's careless act was an act done in the course of his employment - Arbitration - Case stated - Decision of Northern Ireland Court of Appeal (reversing Brown, J., and affirming award) that driver at the time of the accident was the servant of the transport board and that his negligence was negligence in the course of his employment; and that therefore the transport board were entitled to indemnity from their insurers-Appeal by insurers.