This case was heard in the Supreme Court of Prince Edward Island (Trial Division).

Metropolitan Stores of Canada Ltd. ("Metropolitan") leased commercial premises that were owned by Sep Holdings Ltd. ("Sep"). After a leaking fuel tank caused a considerable oil spill with expensive clean-up costs, Metropolitan argued that Sep, as the owner of the premises, was responsible for the clean-up. Sep initiated legal proceedings against Metropolitan, arguing that the maintenance of the fuel tank and heating system were Metropolitan’s responsibilities under the lease.

After considering the terms of the lease, the Court agreed that Metropolitan was responsible for the fuel tank and heating system, and should therefore pay the costs of the clean-up.