Key facts
- Thomas Goodhead, former CEO of Pogust Goodhead, is attempting to take control of a £36 billion lawsuit against BHP.
- Pogust Goodhead was ousted as CEO last August over allegations of financial misconduct, which he denies.
- The firm is leading a group action case against BHP on behalf of 420,000 claimants following the 2015 Fundão dam collapse.
- A new joint venture, Bailey Glasser International, stated it will replace Pogust Goodhead as solicitors for the clients.
- Pogust Goodhead has filed a High Court application to block the client committee's actions and maintain its role.
- The firm is also facing an £84 million lawsuit from its funder, Vinci SPS Capital Gestão de Recursos Ltda.
The legal battle over the £36 billion lawsuit against mining giant BHP has taken a new turn with the involvement of Thomas Goodhead, the ousted former chief executive of the law firm Pogust Goodhead, which is leading the case. Goodhead, who was removed from his position last August over allegations of financial misconduct, is reportedly behind a bid to wrest control of the litigation from his former firm.
Pogust Goodhead, co-founded by Goodhead and US disputes lawyer Harris Pogust, secured a significant High Court victory last November, establishing BHP's liability for the 2015 Fundão tailings dam collapse in Brazil. This ruling was further solidified when the Court of Appeal refused BHP's application for permission to appeal in May.
The firm is representing 420,000 claimants affected by the dam collapse, which resulted in 19 deaths. However, the Client Committee, appointed by Goodhead during his tenure, has raised concerns about the management and resourcing of the litigation. The committee's chairman, Marcelo Batista Santana Krenak, notified Pogust Goodhead of their intention to terminate the firm's contract on behalf of certain clients.
Bailey Glasser International, a new joint venture comprising former partners from Pogust Goodhead and US firm Bailey & Glasser, has stated its intention to replace Pogust Goodhead as the solicitors for the clients. Goodhead was briefly a director of this new entity last November. However, Pogust Goodhead maintains that it continues to act as the solicitor and that the court has not determined a replacement.
In response, Pogust Goodhead has filed a High Court application seeking to block the committee's actions. The firm alleges that the committee lacks the authority to remove it from leading the litigation or to appoint new counsel, citing client agreements. Pogust Goodhead expressed concern that clients are being encouraged to switch firms without fully understanding the potential impact on the litigation's structure, funding, and timetable, especially with a 22-week damages trial approaching.
Adding to Pogust Goodhead's challenges, the firm is also facing an £84 million lawsuit from its funder, Vinci SPS Capital Gestão de Recursos Ltda, over alleged breaches of obligation. Furthermore, the High Court recently rejected the majority of the firm's 'dieselgate' claims brought on behalf of 1.6 million UK car owners.