BHP Faces Multi-Billion Dollar Lawsuit Over Brazilian Dam Disaster
A massive lawsuit worth up to $47 billion has begun in London’s High Court, pitting thousands of victims against BHP, the world’s largest miner, over the devastating 2015 collapse of the Mariana dam in southeastern Brazil. The disaster, which killed 19 people, left thousands homeless, and polluted the Doce River, has sparked a 12-week trial to determine whether BHP is liable for the catastrophe.
Victims’ Lawyers Accuse BHP of Avoiding Responsibility
Lawyers representing the claimants argue that BHP is “cynically and doggedly trying to avoid” responsibility for the disaster. Despite the company’s claims that it has already paid nearly $8 billion in compensation through the Renova Foundation, the victims’ lawyers contend that this amount falls woefully short of what is owed. Alain Choo Choy, the claimants’ lawyer, stated that “there is a chasm between what BHP regards as ‘acceptable’ and the compensation to which the claimants consider themselves legally and morally entitled”.
BHP Contests Liability, Citing Lack of Ownership and Control
BHP disputes its liability, arguing that it did not own or operate the dam, which was controlled by its Brazilian subsidiary and joint venture partner, Samarco. The company also claims that it had no knowledge of the dam’s compromised stability prior to its collapse. BHP’s lawyers assert that there is no law or contract that imposes a duty of safety on the ultimate parent company of a non-controlling shareholder.
Brazilian Government Negotiates Compensation Deal
Meanwhile, the Brazilian government is negotiating a nearly $30 billion compensation deal with BHP, Vale, and Samarco. However, the victims of the disaster are not involved in these talks, and many feel that the proposed deal is “too little, too late”. Tom Goodhead, CEO of Pogust Goodhead, the law firm representing the claimants, stated that the victims want to proceed with the trial to hold BHP accountable.
Trial to Determine Liability and Compensation
The 12-week hearing will consider various factors, including whether the Brazilian municipalities are permitted to bring legal action, the impact of any agreements reached with BHP by claimants involved in the English lawsuit, and whether the claims were brought too late. As the trial unfolds, the court will ultimately decide whether BHP is liable for the devastating consequences of the Mariana dam disaster.
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