This case was heard in the Supreme Court of Nova Scotia.
The Jerabeks hired Scotia Fuels Ltd. to install a new fuel oil tank in their furnace room. The installation was defective, and it caused an oil spill that migrated into the soil beneath the Jerabeks’ home, and also into their septic system. Scotia Fuels hired contractors to conduct a clean-up, but when the Jerabeks complained of a continuing odour, Scotia Fuels denied responsibility. The Jerabeks’ insurer hired environmental consultants to conduct further tests and remediation, and the Jerabeks hired additional environmental consultants to do even more. The Jerabeks sued Scotia Fuels Ltd. for the costs that they and their insurer paid for the additional clean-up, and they also claimed damages for mental distress. The Court found that the fuel tank oil spill had in fact caused the continuing odour, and that Scotia Fuels was therefore responsible for the total costs.