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BHP Fundão: English High Court applies Brazilian law to find liability, signalling wider parent and joint venture control exposure, expansive jurisdiction and a procedural blueprint for mass environmental claims

Published on: 20 November 2025

Published by a Law360 reporter
Legal News
Article summary

Justice Finola O'Farrell found BHP legally liable on 14 November 2025 for the collapse in 2015 of the Fundão Dam at an iron ore joint venture with Vale SA

In a High Court ruling, BHP was held responsible for the 2015 failure of the Fundão Dam at Samarco, its 50% iron ore joint venture with Brazilian company Vale. The court concluded the risk of collapse was foreseeable, and that BHP’s liability stemmed from the extent of its involvement in Samarco, which owned and operated the dam. Justice O’Farrell found BHP ‘controlled and operated’ Samarco, acted as a ‘directing mind’, and secured substantial commercial benefits. She determined BHP had ‘assumed responsibility’ for risk assessment, mitigation and dam safety.

James Peel, a commercial litigation lawyer at Weightmans LLP, observed that the judgment shows English courts are increasingly ready to look beyond formal corporate structures and assess real-world influence and control. For UK-based multinationals, particularly those with major overseas operations or joint ventures, he said ‘the case should prompt a re-examination of corporate structure, risk oversight and litigation readiness’. Jehad Mustafa, a partner at Farrer & Co LLP, described the ruling as a ‘landmark in English legal history’...

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