The Privy Council has ruled in favor of Rubis Bahamas Ltd in a dispute concerning fuel leaks from a petrol station in Nassau, The Bahamas, affirming strict liability for the storage of petroleum products on land under the longstanding common law principle established in Rylands v Fletcher. The case, involving contamination claims dating back to leaks in 1994 and 2012, was remitted to the Supreme Court to determine the precise extent of damages caused by the 2012 incident.

The claimant, Lillian Antoinette Russell, alleged that two fuel leaks from the service station resulted in soil and groundwater pollution. At issue was whether Rubis, which leased the station to another operator, could be held liable for environmental harm. Rubis contended that as the station was operated by a lessee, it bore no responsibility for the leaks. However, the Privy Council found that Rubis retained substantial control over the storage facilities, making it liable under the strict liability rule.

The ruling reiterates the enduring principles laid down in the 1868 landmark case of Rylands v Fletcher. Under this doctrine, a party who brings or accumulates something likely to cause harm upon escape on their land is responsible for resultant damage regardless of fault or negligence. The Privy Council emphasized that the storage of petroleum products constitutes a "non-natural" use of land, thereby attracting this heightened form of liability.

Rubis’s argument that the active operation of a petrol station is an ordinary land use—thereby excluding the Rylands v Fletcher rule—was rejected. The council underscored the specialized and hazardous nature of fuel storage, deeming it exceptional enough to maintain strict liability protections given the inherent risks of leaks and contamination.

While the legal principle has been affirmed, the appellate body directed the Supreme Court of The Bahamas to carefully assess the factual evidence regarding the extent of environmental damage stemming from the 2012 leak. The decision highlights the continuing relevance of strict liability principles in regulating industrial and commercial activities that pose environmental risks and clarifies operator responsibilities when leasing arrangements are involved.