BHP trying to avoid responsibility over Brazilian dam collapse, UK court told (updated)
21/10/2024 11:50
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Mariana tailings dam collapse killed 19 people
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BHP cynically trying to avoid responsibility, claimants
say
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Miner says London lawsuit should be dismissed
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High Court hearing to last up to 12 weeks
(Recasts with quotes from the start of the trial)
By Sam Tobin
LONDON, Oct 21 (Reuters) - BHP BHP.AX is cynically
trying to avoid its responsibility for Brazil's worst
environmental disaster, lawyers representing thousands of
victims told London's High Court on Monday, as a lawsuit worth
up to 36 billion pounds ($47 billion) began.
More than 600,000 Brazilians, 46 local governments and
around 2,000 businesses are suing BHP over the 2015 collapse of
the Mariana dam in southeastern Brazil, which was owned and
operated by BHP and Vale's VALE3.SA Samarco joint venture.
The dam's collapse unleashed a wave of toxic sludge that
killed 19 people, left thousands homeless, flooded forests and
polluted the length of the Doce River.
BHP, the world's biggest miner by market value, is
contesting liability and says the London lawsuit duplicates
legal proceedings and reparation and repair programmes in Brazil
and should be thrown out.
It also says nearly $8 billion has already been paid to
those affected through the Renova Foundation, with around $1.7
billion going to claimants involved in the English case.
The lawsuit, one of the largest in English legal history,
entered a decisive stage on Monday with the beginning of a
12-week trial to determine whether BHP is liable.
The claimants' lawyer Alain Choo Choy said in court filings
made public on Monday that "there is a chasm between what BHP
regards as 'acceptable' and the compensation to which the
claimants consider themselves legally and morally entitled".
He argued that BHP's actions in fighting the case and
funding separate litigation in Brazil showed the miner was
"cynically and doggedly trying to avoid" responsibility.
"Although that is BHP's choice, it cannot properly now claim
to be a company 'doing the right thing' by the victims of the
disaster," Choo Choy added.
'EXAGGERATED'
BHP argues it did not own or operate the dam, which held
minings waste known as tailings. It said a Brazilian subsidiary
of its Australian holding company was a 50% shareholder in
Samarco, which operated independently.
The miner also said it had no knowledge the dam's stability
was compromised before it collapsed.
Lawyers representing the miner said in court filings: "There
is no law or contract which imposed any duty of safety on the
ultimate parent company of a non-controlling shareholder and the
other parent company in the same corporate group.
"Nor was there any breach of such duty of safety. And nor
did BHP's acts or omissions cause the collapse."
BHP also said that parts of the lawsuit were "implausible or
exaggerated".
Monday's hearing follows developments in BHP's negotiations
with the Brazilian authorities over the disaster. The Brazilian
government is discussing a nearly $30 billion compensation deal
with BHP, Vale and Samarco, they said on Friday.
Tom Goodhead, CEO of Pogust Goodhead, the law firm
representing the claimants, told reporters that the victims of
the disaster were not involved in the planned deal.
"People just feel it's too little, too late," he said
outside the High Court. "They want to go ahead with the trial,
hold them accountable."
BHP said in a statement that it is trying to "finalise a
fair and comprehensive compensation and rehabilitation process".
The 12-week hearing will also consider 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.
(Reporting by Sam Tobin
Editing by Mark Potter and Barbara Lewis)
((Sam.Tobin@thomsonreuters.com;))