BHP’s Staggering Legal Bills

Ben Thomson, LawFuel contibuting editor

BHP is facing one of the largest environmental lawsuits in legal history following the 2015 Fundão dam collapse in Brazil, with legal costs projected to reach extraordinary levels across multiple jurisdictions.

We have reported previously about entepreneurial London-based law firm Pogust Goodhead, co-founded by former London barrister Tom Goodhead (pictured) who have taken the US6 BN legal action and have faced some difficulties of their own following much fanfare and expansion.

The Law Gazette reported that the firm had net debts of more than £500m.

Since its foundation in 2018 Pogust Goodhead has handled some of the highest-profile litigation in the UK, such as the Volkswagen diesel emissions claim and the Mariana dam case on behalf of more than 620,000 Brazilian claimants, in which a four-month hearing concluded last month. 

The legal costs associated with the case are staggering. Lawyers’ fees in the London case alone are projected to exceed US$680 million, making this one of the most expensive litigation matters in recent history.

That figure represents just one component of BHP’s total legal expenditure related to the 2015 dam disaster which polluted the Doce River for 650km to the Atlantic Ocean, killed 19 people and destoyed a town, as well as releasing over 40 million cubic meters of toxic mining waste into the environment.

The case is at the intersection of environmental law, corporate responsibility, and international litigation funding in the 21st century.

Multiple Legal Fronts

BHP is defending itself across several jurisdictions, including:

• London High Court: Over 600,000 claimants seeking up to £36 billion ($47 billion) in damages
• Brazilian courts where separate proceedings resulted in a $30 billion settlement agreement in October 2024;
• Australian Federal Court over a shareholder class action over disclosure failures;
• US courts over securities litigation that resulted in a $50 million settlement in 2019.

The London Legal Marathon

The London proceedings represent one of the largest lawsuits in English legal history involving 620,000 claimants, 46 Brazilian municipalities and vairious indigenous groups and other organisations.

The trial concluded in March 2025, with Justice Finola O’Farrell expected to deliver her judgment by the middle of the year. If BHP is found liable, a separate damages trial is scheduled for October 2026.

The claimants’ case is backed by the largest ever litigation funding bankroll of $552.5 million from US hedge fund Gramercy, supporting law firm Pogust Goodhead’s action for a share of any potential win.

Financial Impact on BHP

BHP has already provisioned $6.5 billion for the dam failure and reached a $30 billion settlement with Brazilian authorities in October 2024. 

The company’s total exposure could be significantly higher if the London case succeeds, potentially affecting the 17 million Australians who benefit from BHP dividends either directly or through superannuation.

The case is a watershed moment for cross-border environmental litigation. The scale of legal fees involved also highlights the growing costs of complex international litigation in the modern legal landscape.

BHP maintains its denial of liability while facing mounting legal costs across multiple jurisdictions.