LMS International Limited v Styrene Packaging and Insulation Limited, 30 September 2005 (High Court).
The occupier of a building used for manufacturing polystyrene blocks was found liable under the rule in Rylands v Fletcher for damage caused by a fire that spread to adjoining properties.
The rule was applied by the court in the "modern, restricted form" that exists after the development of the rule in recent cases, including, in particular, Transco v Stockport Metropolitan Borough Council. The court considered whether the existence of health and safety regulations and any insurance put in place by the claimant might affect liability.
It held that liability under Rylands v Fletcher would only be excluded where there were regulations that applied directly to the particular activities carried out, such that there already was an exhaustive code of liability. The existence of insurance in favour of the claimant should not determine whether that person has an actionable right in law.
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