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the two are unrelated. the service light is a dummy light. every 5000 miles or so it comes on. there should be a rubber plug on the front near the odometer. take it (the rubber plug) out, and take a pen and push the button in hard (but not TOO hard) and the light should go out. put the rubber plug back in.
as for the brakes, what makes you say the rear brake is leaking? do you see any leaking fluid? your description sounds like a failed master cylinder, not a leaking caliper.
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Ken 1990 Volvo 740 base sedan (B230F) My Volvo 'Project'
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