Nigerian farmers will have the chance to sue oil multinational Shell in a Dutch court for pollution they blame on leaking pipelines, a Dutch appeals court ruled Friday.

Activists said the ruling sets a landmark legal precedent that clears the way for Dutch-based companies to be sued for alleged negligence of their subsidiaries elsewhere in the world.

"There is now jurisprudence that means victims of human rights violations or pollution can sue Dutch multinationals in the Netherlands," said Geert Ritsema of the Dutch arm of Friends of the Earth, the environmental group that is also involved in the case.

The case centers on a charge from four farmers that Shell and its Nigerian unit are liable for damages caused by leaks from two underground oil pipes from 2004-2007. Shell has argued that it has no liability in the case and that Dutch courts did not have jurisdiction.

"It cannot be established in advance that the parent company is not liable for possible negligence of the Nigerian operating company," The Hague Appeals Court said in a statement.