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Update:
- Appeal judges in the UK have ruled that a class action lawsuit filed against BHP Group over its role in a deadly 2015 mining dam collapse in Brazil can proceed in a reversal of a prior ruling.
- A lower court had previously blocked the class action lawsuit, which seeks at least $7 billion in damages, from going forward in the UK, Bloomberg reports.
- A class of more than 200,000 individuals claim BHP is liable for the collapse of the Fundão Dam, which killed 19 people and destroyed villages and natural habitats.
- BHP had argued that the class action lawsuit duplicated ongoing legal proceedings in Brazil and should not be allowed to proceed, Bloomberg reports.
- Appeal judges disagreed with BHP, ruling that the overlap between the two cases is “not so obviously adequate.”
Mining Dam Collapse Class Action Lawsuit Overview
- Who: Victims of a 2015 mining dam collapse in Mariana, Brazil.
- Why: The UK Court of Appeals ruled to allow victims of the fatal dam collapse that saw toxic mine tailings contaminate the area to seek redress against the British-based co-owner, BHP.
- Where: The dam collapse occurred in Brazil; however, victims are seeking compensation from the dam owner in the British court system.
(08/17/2021)
The victims of the fatal 2015 Samarco dam collapse, which occurred in Mariana, Brazil, have had their class action lawsuit against BHP reopened to avoid “real injustice.”
The UK Court of Appeals ruled to reopen the £5 billion class action lawsuit, with judges writing that a previous dismissal of a motion to appeal “mistakenly prevented numerous claimants, who had made no claims in Brazil, from suing in England,” The Chemical Engineer reports.
Attorney General of Mariana Frederico de Assis Faria said that nearly six years on, the country was still living with the effects of the fatal collapse of the Fundão tailings dam in Mariana, Minas Gerais, Brazil in 2015.
When the dam collapsed it released a torrent of toxic sludge that buried homes and villages, and killed 19 people, contaminated local waterways, and caused a significant environmental crisis, according to The Chemical Engineer.
An independent investigation into the dam’s collapse concluded that design flaws were responsible, and a year after the tragedy 21 people were charged with qualified homicide.
Victims of Dam Collapse Blame UK Mining Co
Although the disaster has been the subject of legal action in Brazil, those affected by the collapse say that redress in the country had been inadequate and they were seeking jurisdiction in England, where BHP Group PLC is domiciled, alleging it was protected from legal consequences in Brazil.
The High Court in the UK first refused jurisdiction in the case in 2020, and reaffirmed that in May 2021. But that decision has now been overturned.
The class action lawsuit alleges that BHP, which co-owns the company that owns the mine – Samarco, is ultimately responsible for the disaster. It seeks around £5 billion in damages for 200,000 individuals, 25 Brazilian municipal governments, 530 businesses, a Catholic archdiocese, and members of an indigenous community, The Chemical Engineer reports.
Tom Goodhead, managing partner at Pogust, Goodhead, Mousinho, Bianchini & Martins (PGMBM) the law firm that brought the class action lawsuit, said the case represented the rights of every person affected by the dam collapse.
“BHP’s empty redress efforts in the national territory have been very disappointing and the reopening of the action in the English court gives us an opportunity for real justice,” he said.
“This is a monumental judgement and our clients feel like this is the first time that any judges have recognised the importance of this case.”
However, BHP argues that the class action lawsuit belongs in Brazil, where it was already being addressed, and not in the UK.
“Issues brought by the claimants are already covered by the work of the Renova Foundation, by existing decisions of the Brazilian Courts or are the subject of ongoing legal proceedings in Brazil,” the company said, adding that it would not be “distracted from our commitment to do the right thing for the victims of the Fundão dam failure.”
“We will continue to support the extensive ongoing remediation and compensation efforts of the Renova Foundation in Brazil.”
The Renova Foundation was set up after the dam’s collapse as a nonprofit responsible for remedying the impacts of the fatal incident. The organization has funded environmental and socioeconomic reparation and rehabilitation projects, as well as provided compensation and financial aid to locals, BHP said.
But, in arguing the failings of the foundation, PGMBM cited a 2020 report by then-UN Special Rapporteur Baskut Tuncak who wrote: “In the aftermath of the disaster, BHP and Vale rushed to create the Renova Foundation to provide the affected communities an effective remedy.
“Unfortunately, the true purpose of the Renova Foundation appears to limit liability of BHP and Vale, rather than provide any semblance of an effective remedy. Institutional shortcomings are well-documented in literature and litigation. Today, none of 42 projects are on track.”
Do you think BHP should be held accountable in the UK as well as Brazil? Tell us your thoughts in the comments section!
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