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UK Court Holds Multinational Liable for Environmental Disaster

4 months ago
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Source: Morrison Foerster

TL;DR

In Município de Mariana v BHP Group (UK) Ltd, the UK High Court held BHP directly liable under Brazilian law for the 2015 Fundão dam collapse that killed 19 people and displaced thousands. The ruling exemplifies English courts' willingness to scrutinize parent-company-subsidiary relationships to establish liability in environmental cases. This landmark decision sets precedent for cross-border environmental claims and corporate accountability for disasters affecting ordinary citizens.

In Município de Mariana v BHP Group (UK) Ltd [2025] EWHC 2935 (KB), the UK High Court held BHP directly liable under Brazilian law for the 2015 Fundão tailings dam collapse in Brazil. The disaster killed 19 people, displaced thousands, and caused one of the worst environmental disasters in Brazilian history. The High Court's finding exemplifies the expansion of mass tort, cross-border group claims in English courts. This decision highlights the courts' willingness to scrutinize parent-company-subsidiary relationships to establish liability in environmental cases, particularly for multinationals and high-risk sectors. The ruling is significant because it allows victims of corporate environmental disasters to pursue claims in UK courts against parent companies, even when the harm occurred in another country. This creates a powerful tool for holding multinational corporations accountable for their operations worldwide. The case represents a victory for ordinary citizens against a powerful multinational corporation. The ruling sets important precedent for cross-border environmental claims and demonstrates that corporations cannot hide behind subsidiary structures to avoid responsibility for environmental disasters that harm communities. Legal experts note this decision could open the door for similar claims against other multinationals operating in high-risk sectors, particularly in mining, oil and gas, and manufacturing. The case is part of a broader trend of English courts taking a more expansive view of corporate liability for environmental and human rights abuses.

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