The largest class action lawsuit of its kind – the $47 billion Brazilian dam collapse case – has hit the London Courts lead by personal injury firm Pogust Goodhead.
According to Pogust Goodhead the claims against mining giant BHP makes it the largest environmental claim ever.
The claim stems from the 2015 Fundão dam collapse in Brazil and represents one of the largest group lawsuits in English legal history, with potential ramifications for international corporate liability.
“The claimants respectfully submit that BHP’s liability to compensate them for their losses is, at the end of the day, straightforward and obvious,’’ attorney Alain Choo Choy KC, a King’s Counsel from One Essex Court, (pictured) said in written submissions.
“BHP is a polluter and must therefore pay.”
BHP owns 50 percent of Samarco, the Brazilian company that operates the iron ore mine where a tailings dam broke on November 5, 2015, releasing enough mine waste to fill 13,000 Olympic-size swimming pools into the Doce River in southeastern Brazil.
The case was filed in Britain because one of BHP’s two main legal entities was based in London at the time.
The Plaintiffs claim that BHP have persistently attempted to evade responsibility for the disaster even though they allegedly were aware of significant risks associated with the dam before its eventual collapse.
They allege that the reparations process in Brazil is inadequate and necessitates the UK claim.
Massive Class Action Claim on All Levels
Apart from the massive dollar amount the claim also involves big numbers on all levels, including over 620,000 individual claimants spread over 46 Brazilian municipalities and involving over 2000 businesses.
The litigation would also see Pogust Goodhead and others share in some of the largest legal fees collected in any such class action.
BHP’s Defense
BHP’s legal strategy includes denial of liability as a Samarco shareholder, asserting a lack of knowledge regarding the issues with the dam. The BHP defense is headed by Shaheed Fatima KC of Blackstone Chambers, (pictured)
They also claim that the UK lawsuit duplicates reparation efforts and legal proceedings in Brazil.
The claim comes just a few days after an announcement that there were negotiations to provide compensation in Brazil of over $31 million for the disaster and that the claim was therefore both unnecessary and legally redundant as a result of the Brazilian efforts.
The disaster destroyed two villages, killed 14 tons of freshwater fish and damaged 660 kilometers (410 miles) of the Doce River, according to a study on the tragedy.
The Funding and Fee Structure
The lawsuit is being financed by U.S. alternative asset management firm Gramercy and fronted by the law firm co-founded by British barrister Thomas Goodhead. (Pictured)
Gramercy funding assisted Pogust Goodhead to expand into Australia and Latin America, enabled by a loan worth over $1 billion.
And the firm’s US-style methods and the lifestyle of its principals have created considerable controversy and interest.
BHP alleges that lawyers and funders may claim up to 30 percent of any awarded compensation in legal fees.
This case presents significant implications for transnational corporate liability and the viability of pursuing environmental disaster claims in jurisdictions beyond the site of the incident.
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