The Court of Appeal in London has made a dramatic U-turn and agreed to reopen a $7 billion legal action against Anglo-Australian mining company BHP made on the behalf of 200,000 claimants in Brazil following the bursting of the Fundão Dam, which led to the country's worst-ever environmental disaster.
Bento Rodrigues, Mariana, Minas Gerais, Brazil. Photo: Senado Federal / Flickr. Licence: CC BY
The collapse of the dam caused a torrent of mud that flooded several houses in the district of Bento Rodrigues, in Mariana, in the Minas Gerais of central Brazil. Bento Rodrigues, Mariana, Minas Gerais, Brazil. Photo: Senado Federal / Flickr. Licence: CC BY
The lawsuit is one of England's largest-ever group claims and the lawyers working on it have been trying to resurrect the case since it was rejected by a lower court last year as an abuse of process.
The ruling was upheld by a Court of Appeal judge in March, seemingly dashing the claimants' hopes for redress after the 2015 disaster.
However, three Court of Appeal judges have abruptly changed course and given permission for an appeal.
Read more: Mariana Dam Victims To Appeal Court Decision To Forego Case Against BHP
"Whilst we fully understand the considerations that led the judge to his conclusion that the claim should be struck out, we ... believe that the appeal has a real prospect of success," the judges said.
The Fundão Dam's collapse left 19 dead and wiped out entire villages as torrents of over 40 million cubic metres of mining waste devasted the area, making its way into the Doce River and ultimately into the Atlantic Ocean more than 650 km (400 miles) away.
The dam is co-owned by BHP and Brazilian iron ore miner Vale.
Tom Goodhead, a PGMBM managing partner who is bringing the claim on behalf of Brazilian individuals, businesses, churches, organisations, municipalities and indigenous people, called it a "monumental judgement".
Frederico de Assis Faria, Attorney General of Brazil's Mariana district, which was hit especially hard, said the reopening of the case "gives us an opportunity for real justice".
BHP is the largest mining company in the world by market value. The company has described the legal action as being pointless and wasteful, claiming that it is simply copying proceedings in Brazil.
In a statement, it said: "BHP's position remains that the proceedings do not belong in the UK."
Read more: Vale agrees to $7bn settlement over Brumadinho dam disaster
In April, PGMBM revived the case, applying for an oral Court of Appeal hearing on the basis that the judge had not properly dealt with the arguments as to why the case should go ahead.
Lawyers working on behalf of the claimants say that many of their clients have not already brought proceedings against BHP in Brazil and, as such, they were entitled to do so in England. They added that the process for litigation in Brazil is lengthy and complicated and would not provide redress in a realistic timeframe.
It is the latest lawsuit to open up the question as to whether multi-national companies can be held liable for the actions of overseas subsidiaries in domestic courts.
It is expected that the appeal will be heard next year. Any ruling is likely to go on to be appealed in the Supreme Court in London.
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