Pogust Goodhead drafts in Quinn for £36bn BHP damages fight

Pogust Goodhead has struck a “strategic partnership” with Quinn Emanuel and secured new funding of up to $150 million from US hedge fund backer Gramercy as it prepares for the damages phase of its landmark £36 billion claim against mining giant BHP.

The claim relates to the collapse of the Mariana dam in Brazil in 2015, which killed 19 people and is considered Brazil’s largest environmental disaster on record.

Gramercy is a longtime backer of the firm, having agreed a $552 million funding deal with Pogust in 2023 in what is understood to be the largest single litigation finance deal ever. The new funding is dedicated exclusively to the Mariana dam litigation.

Quinn partnership

The Quinn partnership follows reports that Pogust has lost several lawyers on the case in recent months. According to the Financial Times, the firm has offered associates retention bonuses of up to £40,000 to stay on.

Pogust has been boosting its ranks for the case. In November, it recruited Jonathan Wheeler from MoFo to lead the litigation, before hiring his former colleague Gemma Anderson from Quinn Emanuel in February.

The firm has seen significant changes during the long-running litigation, including the departure of its co-founder and former CEO Tom Goodhead and a Gramercy-backed turnaround consultant taking control of the firm last year.

According to the FT, while Pogust remains the law firm on record, Quinn will lead the litigation.

Next stage

The new funding follows a series of major court victories for Pogust.

In November last year, the High Court held BHP liable for the dam disaster. The Court of Appeal has since refused BHP permission to appeal that ruling.

With liability established, the proceedings move to the next stage, where the court will determine how much compensation is owed to the hundreds of thousands of claimants. The trial on damages is due to begin in April next year.

What they said

Pogust said the financing would support the case through that stage and help bring the long-running litigation to a conclusion.

The Quinn team will be led by London-based partner Justin Michaelson alongside Pogust to manage and execute a “coordinated strategy” through the next phase of the litigation.

Michaelson said: “Pogust Goodhead has achieved a landmark result in establishing liability, and we are proud to join them at this pivotal stage.”

Howard Morris, chairman of Pogust Goodhead, said: “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.”