Creative Farming Ltd. manufactures fertilizer from organic matter, a by-product of which is explosive methane gas. During the processing, some of this gas escaped and drifted onto the adjacent property, where it caused an explosion and extensively damaged a building owned by XYZ Co. Creative Farming Ltd. would be liable for the loss under which one of the following principles?

Question

Quizplus · Accepted Answer

Strict liability applies because Creative Farming Ltd. is engaged in an inherently dangerous activity (processing organic matter that produces explosive methane gas), and would be liable for any damages caused by the escape of the gas, regardless of the level of care they exercised.