Class action firm Pogust Goodhead has lined up a $150 million boost to its funding warchest and announced a 'strategic partnership' with New York-based litigation heavyweight Quinn Emanuel Urquhart & Sullivan as it limbers up for the next phase of its claim against mining giant BHP over a 2015 Brazilian dam collapse.
US hedge fund Gramercy Funds Management will be providing the new facility, with an initial tranche of $85m (£64.6m), the firm said today. Gramercy is understood to have already invested £450m in the claim, which has been valued at £36bn.
The first-stage trial in one of the largest group actions in English legal history concluded in March last year. In November, a 222-page judgment by Mrs Justice O’Farrell found the collapse of the Fundão Dam, operated by Samarco, a joint venture between BHP and Brazilian company Vale, had been ‘foreseeable’. It found BHP was ‘strictly liable’.
BHP sought permission to appeal the decision but was refused by the Court of Appeal. A second phase of the trial, dealing with quantum, is listed to begin in October.
Read more
Under the strategic partnership Pogust will work alongside Quinn Emanuel, which styles itself the 'world's most-feared law firm' and last year reported profit per equity partner figure of $9.5m. The team will be led by Quinn partner in London Justin Michaelson, a specialist in complex cross-border disputes.
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.’
Howard Morris, chair of Pogust Goodhead, said: ‘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.’
2 Readers' comments