The Dutch legal system does have the authority to rule on a case between several Nigerian farmers and oil giant Shell, appeal court judges in The Hague said on Friday.
Shell had challenged the authority of the Dutch courts to rule on its activities in Nigeria, news agency ANP reported.
The farmers, green lobby group Milieudefensie and Shell have been involved in a legal conflict over the Nigeria oil leaks since 2008.
The case is unique because it is the first time a Dutch multinational has been held responsible for environmental damage caused abroad by a foreign subsidiary in a domestic court.
Shell was ordered to pay compensation to one farmer in 2013 by judges in The Hague but they dismissed four other claims.
The farmers are holding Shell responsible for damage caused to their land and fishing stocks by oil leaks. Shell is headquartered in The Hague.
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