What defense was successfully applied in Peters v Prince of Wales Theater under Rylands v Fletcher?

The successful defense in Peters v Prince of Wales Theater under Rylands v Fletcher was based on the principle of mutual benefit due to shared facilities. In this case, the use of the land and the activities taking place on it were deemed to benefit both parties. The court recognized that when parties are engaged in a shared economic activity, such as a theater and its patrons, and are mutually benefiting from the use of the facilities, it creates a different legal landscape regarding liability. This mutual benefit suggests a level of cooperation or assumption of risk that may shift responsibility away from one party to another, which is a foundational concept in the application of Rylands v Fletcher.

When mutual benefit is established, it often alters how nuisance claims are evaluated and the responsibilities of the parties involved. Hence, the court is less likely to impose liability on one party for activities that contribute to a shared business purpose, as both parties can be seen as participating in the risk.