Updated October 11, 2012, 12:55 p.m. ET
By SELINA WILLIAMS
LONDON—Royal Dutch Shell RDSA +0.28% PLC Thursday appeared in court in the Netherlands for the first time over the actions of one of its foreign subsidiaries, facing compensation claims for environmental damage from oil spills in Nigeria.
The case could set a legal precedent over how Dutch companies are held responsible for the actions of their foreign subsidiaries.
The suit has been brought by environmental group Friends of the Earth Netherlands and four Nigerian farmers, who are seeking compensation over claims that oil spills from Shell pipelines in Nigeria have damaged their livelihood. They also say they want the Anglo-Dutch oil company, headquartered in The Hague, to complete a cleanup of the spills.