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The English High Court has delivered a significant judgment against BHP, the Australian mining giant, holding it liable for the tragic collapse of the Fundão Dam in Brazil, an event that marked one of the country’s most severe environmental disasters. Despite not owning the dam at the time, the court ruled that the collapse was “reasonably foreseeable,” refuting BHP’s defense claims that the failure was a “sudden and unexpected” occurrence. Justice Finola O’Farrell highlighted that signs of distress, including seepage and cracking, were evident over a year before the 2015 disaster, indicating a high risk of collapse had a proper stability analysis been conducted.
This case presented complex legal challenges, as BHP contended that the London proceedings were an “abuse of process,” duplicating those in Brazil. However, the court dismissed this argument, proceeding under Brazilian environmental law. Justice O’Farrell emphasized the broad definition of a “polluter” as outlined under Brazilian law, incorporating not only the direct operators but also those who finance or benefit from the activity. This approach draws from Brazilian jurisprudence, considering factors such as control, risk creation, financing, and economic benefits. You can read more about the nuances of this ruling on JURIST.
The ruling is a pivotal example of holding multinational corporations accountable within their home jurisdictions for environmental disasters abroad. BHP, which owns half of Samarco—the operator of the iron ore mine—faces substantial implications, both legal and reputational. The collapse released mine waste into the Doce River, with the volume capable of filling 13,000 Olympic-size swimming pools. The environmental and social damage is immense, with biodiversity severely affected as reported by the Wilson Center, highlighting the vast scale of ecological disruption.
Prior legal proceedings saw federal prosecutors in Brazil bringing charges against top BHP executives for homicide, although these were later suspended. This latest decision is especially notable for its utilization of Brazilian legal principles by an English court, potentially setting a precedent for future actions against corporations for overseas environmental damages.
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