British court rejects Vale’s appeal in billion-dollar action for Mariana disaster

The Court of Appeal refused the miner permission to appeal the dismissal of its challenge to the jurisdiction of the English Court.

This means that if the claimants are successful in holding BHP liable for their losses, BHP’s third party claim against Vale will proceed in the English Court, where BHP will seek to hold Vale liable for 50% or more of any damages awarded to the claimants.

The lawsuit is the largest group litigation in English legal history and involves over 700,000 victims.

The Mariana dam disaster occurred on November 5 2015, when the Fundão tailings dam at the Germano iron ore mine near Mariana, Minas Gerais, Brazil, suffered a failure, resulting in flooding that devastated downstream villages and killed 19 people.

“Yet again we see the world’s two biggest mining companies squabbling in court rather than facing up to their responsibility as owners of the mine and dam that caused Brazil’s worst-ever environmental disaster,” said Tom Goodhead, CEO at Pogust Goodhead, the legal firm that represents the victims.

“No amount of money will be enough but hiring the most expensive lawyers in the world to fight each other in court is a huge kick in the teeth for all those who are continuing to suffer on a daily basis due to this crime,” he said.

Vale said in a statement that, as a shareholder of Samarco, it understands that the solutions created by the agreements in Brazil, especially the transaction term and conduct adjustment (TTAC), are able to address the demands of the foreign process.

“It is important to clarify that the merits of this action have not yet been assessed or judged,” the miner said in a statement. “The company also reinforces its commitment to repairing the damage caused by the dam collapse, in accordance with the agreements signed with the Brazilian authorities for this purpose.”

The TTAC was signed by Samarco, its shareholders, Vale and BHP, and various public authorities in Brazil and created the Renova Foundation in 2015. According to Vale, the foundation has invested R$28.1 billion ($5.74 billion) in reparation and compensation initiatives.