Law Firm Ordered to Repay Over $1 Million in Legal Battle Over Dam Disaster

Law firm Pogust Goodhead must reimburse 811,000 pounds to Brazilian mining group Ibram after dropping a lawsuit in London over a 2015 dam disaster. The case involved 25 Brazilian cities seeking compensation for the collapse of a dam owned by Samarco. Ibram has taken the dispute to Brazil's Supreme Court.

Law firm Pogust Goodhead has been ordered to reimburse 811,000 pounds ($1.1 million) to the Brazilian mining lobby group Ibram after it withdrew its London lawsuit related to a 2015 dam disaster, according to a statement by Ibram. The lawsuit concerned the collapse of a dam, owned by Samarco, a joint venture between Vale and BHP, which resulted in 19 deaths and major environmental damage.

The legal action was initiated by 25 Brazilian municipalities affected by the disaster that declined to participate in a 170 billion real ($31.5 billion) compensation settlement reached between the companies and Brazilian authorities last year. The London court is set to rule on BHP's liability in the disaster soon.

Ibram has challenged the municipalities' decision to pursue litigation abroad, arguing that it undermines Brazil's constitution. The group has taken the matter to Brazil's Supreme Court, which in August ruled that international legal proceedings must comply with local judicial processes to be valid. Ibram President Raul Jungmann emphasized the importance of maintaining Brazil's sovereignty over its mineral resources.

(With inputs from agencies.)