Kristen Zanoni  |  July 24, 2020

Category: Legal News

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BHP Billiton sign on top of office building

More than 200,000 Brazilians affected by a deadly 2015 dam collapse are asking U.K. judges for permission to launch a class action lawsuit against mining company BHP.

If the case moves forward, it would be one of the largest group action lawsuits in U.K. history, according to Business Live.

More than a million people were affected by the Fundão Dam disaster that occurred five years ago, the Telegraph reported. BHP, known as the world’s largest mining company, is at fault, according to the victimised Brazilians. 

The Fundão Dam served as a storage place for iron ore tailings, which is toxic waste formed during the handling of mining the mineral, according to Business Live.

After the dam gave way, it destroyed whole village communities, contaminated rivers with toxic waste and demolished the area’s natural habitats. The burst dam spilled out 40 million cubic metres of waste into residential areas, the Rio Doce river and the Atlantic Ocean.

According to citizens, businesses and the local government, BHP is responsible for the Fundão Dam catastrophe. The dam’s facility was operated by a jointly owned business of BHP and Vale. The breaking of Fundão Dam caused 19 deaths, and the environmental effects have been long-lasting. 

The claimants in the proposed class action lawsuit are pursuing compensation for physical injuries, psychological harm, property damage, moving expenses, loss of income and loss of water supply. 

Samarco, a Brazilian mining company and a joint venture between BHP and Vale, is accused of disregarding notices of safety warnings.

According to law firm PGMBM, the dam company expanded iron ore manufacturing and stored excessive amounts of tailings at the dam, Business Live reported.

BHP was given notice that structural damage was imminent two years prior to the dam collapsing, according to the claimants. It is alleged the cracks in the dam showed early signs of impending danger.

An eight-day hearing began Wednesday in Manchester. It’s not clear if British courts have jurisdiction over the Brazilian disaster.

During the hearing, the judges will determine if the U.K. has any authority to proceed with the case. The class action lawsuit will be pursuing a combined sum of £5 billion.

If the case proceeds, future hearings will establish liability and decide on the cost of damages.

Dam collapse sign graphic - BHPBHP states it has been remedying the situation through the Revona Foundation, an independent firm dedicated to fixing the damage caused by the collapse of Fundão Dam.

BHP has given an amount of approximately £1.3 billion to the foundation. The funds have gone toward restoring villages and building new water supply systems.

The foundation reported that some fraudulent activity caused them to halt payments to some victims who were accused of making false claims, but last week, a Brazilian judge decided that payments will proceed, according to Business Live.

BHP says nearly 100,000 claimants have already gotten payments from the Renova Foundation and only 58 of the claimants filing charges in England are not already a part of the active class actions in Brazil. 

BHP argues that another lawsuit in the U.K. is repetitive and unnecessary.

According to U.S. News and World Report, BHP said in a report that “the attempt to export and duplicate the work being done in Brazil, including the litigation, to England, is pointless and wasteful.”

Claimants are still fighting for more justice, as they accuse Renova of not being adequate enough to give them the compensation they believe is due, London South East reported. Claimants say the foundation is slow to act, politically driven and has not properly fulfilled its duties to victims. 

It is expected that the judge will announce a decision in the case around September.

Do you think the claim will go ahead in the U.K.? Do you think Brazilian lawsuits are enough for BHP to remediate the situation? Let us know in the comments.

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