BHP Faces $65M Legal Tab in Brazil Case

BHP is facing a $65 million legal bill in an ongoing UK court dispute connected to the 2015 dam disaster in Brazil. This large figure highlights the scale of the $55 billion class action while financial difficulties on the opposing side create further complications.

The case centers on the 2015 collapse of the Fundão Dam in Brazil, which affected over 700,000 people. A lawsuit brought before the UK High Court has grown into a large international legal battle, with BHP on one side and a UK law firm representing Brazilian claimants on the other.

Court filings show that BHP has already accumulated tens of millions in legal expenses. The company is now seeking £23.4 million (around $45 million) as a security payment to protect itself if the plaintiffs do not succeed. The law firm representing Brazilian interests, partially funded through a $932 million agreement with a large US investment fund, appears to be under financial pressure. It reported a loss of £290 million for 2022 and has recently reduced staff.

The case is not limited to a single trial. The first phase focused on whether BHP could be held responsible. If the claim moves forward, another court phase is expected in 2026. In the meantime, the court has instructed the plaintiffs' legal team to disclose all funding sources. This could reveal high-profile backers and increase pressure on those financially supporting the litigation.

With legal expenses climbing and no quick resolution in sight, the case may eventually influence how environmental class actions are managed and financed in the UK. When billions are at stake and questions arise over who is funding legal battles, the demand for transparency becomes much greater.

Source: The Australian, Claims Journal, Insurance Journal

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