Mariana Dam disaster: Quantum next
Class action firm Pogust Goodhead (PG) has unveiled a “strategic partnership” with heavyweight litigation firm Quinn Emanuel to work on the next stage of the Mariana Dam case, one of the biggest group claims ever before the English courts.
PG also announced a new funding facility of up to $150m from its existing backer, Gramercy Funds Management, solely to support this case. The firm will initially receive $85m.
The two deals come in the wake of the High Court’s landmark liability ruling in favour of the claimants last November. Last month, the Court of Appeal refused defendant BHP’s application for permission to appeal.
BHP argues that the action duplicates remediation and compensation that has already occurred in Brazil.
Stage 2 of the proceedings will determine issues of causation, loss and damages. The trial evidence is to be heard from April 2027 to December 2027, with closing submissions listed for March 2028.
Depending on what happens, a stage 3 trial may also be required, where each claimant would need to prove their individual damages.
In a statement, PG said: “Led by partner Justin Michaelson, the Quinn Emanuel team will work alongside Pogust Goodhead to manage and execute a coordinated strategy through the quantum phase of the proceedings, combining Quinn Emanuel’s experience in complex, high-stakes global litigation with Pogust Goodhead’s deep expertise in cross-border group actions and unparalleled knowledge of the case.”
PG chairman Howard Morris added: “For more than a decade, our clients have fought for accountability. With liability now established and BHP’s attempts to challenge that finding rejected, the focus turns to securing the compensation they deserve and bringing this case to a long-awaited resolution.
“The support of Gramercy and our partnership with Quinn Emanuel ensure we have the resources, expertise and resolve to deliver the outcome our clients have waited for more than a decade to achieve.”
Mr Michaelson said: “This is one of the most significant group actions ever brought before the English courts. PG has achieved a landmark result in establishing liability, and we are proud to join them at this pivotal stage.
“Together, our focus is clear: to secure the strongest possible outcome for the claimants and help bring this long-running litigation to a successful conclusion.”
By the end of the first trial, the two sides had spent more than £300m in costs between them.
Earlier this month, a judge partially struck out a defence [1] lodged by PG in a battle over £3.1m in fees which litigation boutique Seladore Legal says it is owed for support it gave PG on the case.