LONDON, March 16 (Reuters) - BHP on Monday won its bid to throw out a contempt of court case in Britain over the funding of litigation to try to prevent some Brazilian municipalities suing the mining
BHP Prevails in UK Contempt Case over Brazil Dam Disaster Litigation
Overview of the BHP Contempt Case and Ongoing Litigation
Background: The Mariana Dam Disaster and Legal Fallout
LONDON, March 16 (Reuters) - BHP on Monday won its bid to throw out a contempt of court case in Britain over the funding of litigation to try to prevent some Brazilian municipalities suing the mining giant in London over one of Brazil's worst environmental disasters.
The judgment comes as BHP waits for a decision on whether it can challenge a ruling that it is liable for the 2015 collapse of the Mariana dam in southeastern Brazil that was owned and operated by BHP and Vale's Samarco joint venture.
Allegations Against BHP
Lawyers representing the claimants suing BHP - which include hundreds of thousands of Brazilians, as well as local governments and businesses – said the company had funded Brazilian litigation to stop the municipalities suing in London.
They alleged that, by procuring and funding a lawsuit by Brazilian mining lobby group Ibram, BHP was in contempt of court by interfering with the administration of justice.
Court Proceedings and Outcome
BHP unsuccessfully tried to throw the case out last year, but the Court of Appeal overturned that decision on Monday, bringing the contempt proceedings to an end.
BHP welcomed the ruling, while the claimants' lawyers said their focus was on the underlying litigation over the collapse of the dam.
Appeal and Next Steps
Last week, BHP sought permission to appeal against the ruling that it was liable for the disaster, which came after a mammoth trial that began in October and finished in March.
Ahead of a second trial due to begin in April 2027 to decide what damages are owed, BHP argued it should be allowed to challenge the High Court's decision.
The Court of Appeal is expected to give its ruling on BHP's application for permission to appeal in the coming weeks.
BHP's Position and Compensation Agreement
BHP has always denied liability and says the case duplicates legal proceedings and reparation and repair programs in Brazil.
In the trial's first week, Brazil signed a 170 billion reais ($31.94 billion) compensation agreement with BHP, Vale and Samarco.
($1 = 5.3232 reais)
Reporting and Editorial Information
(Reporting by Sam Tobin; Editing by Kirsten Donovan)
