"Having regard to the inherently dangerous qualities of this
adhesive, particularly to its extremely low flashpoint, to its
capacity for very rapid vaporization and dissipation and to the
enhanced dangers of using it where there is no real circulation of
air, I have come to the conclusion that the notification on the drum
label and the information contained on the data sheet did not amount
to a fulfilment of the third defendant's duty of care and were not
an adequate warning or notice. It is not for me to say what further
information or warning or advice should have been given and I
appreciate that problems might arise in determining what would be
the most suitable language to use. However, I think that some
information should have been conveyed to the purchaser as to the
rapid vaporizing features of the adhesive, as to the desirability of
maintaining an adequate draft of air current and possibly as to the
danger of using it in close proximity to flames, sparks or lamps. I
am of opinion that the failure to give adequate warning or notice of
the inherent dangers in the adhesive materially contributed to the
fire which broke out and to the loss which the plaintiff company
suffered. The statement that the adhesive was highly inflammable
was seen by Townsend and other employees mentioned in the evidence
but a more informative warning might well, as a matter of
probability, have been seen by them or other representatives of the
first-named defendant and have deterred them from using the adhesive
in the manner and under the conditions obtaining on the morning of
12th April 1962. As it is agreed between the parties that the
damage suffered by the plaintiff company amounts to the sum of
$162,518 there will be a verdict and judgment for it in that sum.
"I may say that my mind has fluctuated to some extent on the
question of what the proper outcome of this litigation should be. I
am not unmindful of the fact that the intimation that the substance
was highly inflammable is in itself a warning of some significance,
and I am not unmindful that the sale to the first-named defendant
was not to a housewife for the use of the substance in her home but
to a commercial undertaking which might be expected to have more
knowledge of such substances than many ordinary citizens. However,
having regard to the high degree of inherent danger in the product
and to the enhanced danger when the substance is used as it would be
contemplated that it would be used, by spreading thinly, and to the
circumstance that it should have been contemplated that it would be
used not in open air but in a room or building, I have come to the
conclusion that the lack of care alleged against the third-named
defendant has been established" (1967) 1 NSWR 50, at pp 52, 53