BHP Group Faces Largest Legal Claim in U.K. History -- Update
May 07 2019 - 10:47AM
Dow Jones News
--BHP is facing the largest claim in U.K. legal history for
negligence in connection with the collapse of the Fundao dam in
Brazil
--The group action on behalf of 235,000 Brazilian individuals
and organizations is suing the mining company for $5 billion
--BHP said it will defend itself in the proceedings, which are
being brought in the city of Liverpool
By Oliver Griffin
Anglo-Australian miner BHP Group PLC (BHP.LN) is facing the
largest claim in U.K. legal history for being "woefully negligent"
in its duty to prevent the catastrophic collapse of the Fundao dam
in Brazil, in 2015, which killed 19 people.
A group action lawsuit filed in Liverpool, England on Tuesday on
behalf of 235,000 Brazilian individuals and
organizations--including municipal governments, utility companies,
indigenous tribes and the Catholic church--is represented by law
firm SPG Law. The suit against BHP--the world's biggest mining
company by market value--claims $5 billion in damages caused by the
collapse of the dam.
Tom Goodhead, a partner at SPG Law said: "BHP was woefully
negligent in its duty of care and the damages sought are entirely
commensurate with the devastation the company has wrought upon the
people of Minas Gerais, Espirito Santo and Brazil."
Neil Burrows, a spokesman for the mining company, said BHP
intends to defend itself in the proceedings.
BHP--a UK-registered company--is one of the two parent companies
of dam operator Samarco Mineracao SA. While the claim is being
brought in England, it will be heard under Brazilian law, which Mr.
Goodhead said provides for a number of ways to hold parent
companies liable for the acts and omissions of their
subsidiaries.
Mr. Goodhead said speed was a factor in bringing the case
against BHP to England, explaining that lawsuits concerning
environmental damages in Brazil can take considerably more
time.
The suit alleges that BHP was aware of escalating safety
concerns about the dam's integrity and were knowingly responsible
for decision-making around its operation and maintenance.
Claimants also allege that BHP failed to heed and act on
repeated warnings and consistently increased industrial output of
iron ore, leading to water levels growing, despite safety
concerns.
Shares at 1335 GMT were down 0.3% at 1,773 pence.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
May 07, 2019 10:32 ET (14:32 GMT)
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