In a significant liability ruling, a High Court judge has found BHP legally responsible for the 2015 collapse of the Fundão Dam in Brazil. The disaster caused 19 fatalities and released millions of cubic meters of mining waste. Mrs. Justice O’Farrell determined that the risk of the dam’s failure was foreseeable and that the evidence of its instability was overwhelming.
The judge ruled that BHP, through its UK and Australian entities, is strictly liable under Brazilian environmental law as a polluter. She also decided that the claims from over 620,000 claimants are not time-barred. While a claim under Brazilian corporate law was dismissed, the court affirmed the standing of many local authorities involved in the suit. A subsequent trial to determine damages is scheduled.
BHP, which was represented by Slaughter and May, has stated it will appeal the judgment. The company’s Americas president, Brandon Craig, argued that prior settlements in Brazil would substantially reduce the UK claim's scope. Pogust Goodhead, the law firm representing the claimants, hailed the decision as a landmark victory for accountability.
The judge ruled that BHP, through its UK and Australian entities, is strictly liable under Brazilian environmental law as a polluter. She also decided that the claims from over 620,000 claimants are not time-barred. While a claim under Brazilian corporate law was dismissed, the court affirmed the standing of many local authorities involved in the suit. A subsequent trial to determine damages is scheduled.
BHP, which was represented by Slaughter and May, has stated it will appeal the judgment. The company’s Americas president, Brandon Craig, argued that prior settlements in Brazil would substantially reduce the UK claim's scope. Pogust Goodhead, the law firm representing the claimants, hailed the decision as a landmark victory for accountability.
