High Court dismisses Jurisdiction challenge in claim by Brazilian Quilombola community concerning alleged environmental and other damage from iron mine.

20/03/25

A claim was brought in the KB division of the English High Court by 103 members of a rural Quilombola community (C) against two UK domiciled companies (D) who are alleged to have a high degree of control over an iron mine in Brazil operated by a subsidiary company.

Quilombola are communities of descendants of former slaves of African origin, who are accorded a degree of special status in Brazilian law.

The Mocó and Bocaina Quilombola communities live between 150m and 2km from the Fazenda Mocó mine in Bahia state.  The claim alleges that (1) C suffered various forms of property damage and personal injury due to the adverse effects on the environment of an iron mine operated near their community (2) under Brazilian law (the law applicable to the claim) D are liable to C for damaged on various bases including strict liability and/or fault based liability.

D challenged jurisdiction on the basis that Brazil was the appropriate forum in which the claim should be tried. In its judgment of 14 March 2025, the Court applied the well established two stage test as explained in the leading (again post-Brexit after a well earned rest) Spiliada case and as recently clarified by the Court of Appeal per Popplewell LJ in Limbu v Dyson [2024] EWCA Civ. 1564.

The Court found that whilst Brazil was, other considerations apart, the more natural and appropriate forum, C had demonstrated a real risk that they would not obtain substantial justice in Brazil.

The Court emphasised that this was not due to any shortcomings in the judicial system in Brazil. However there was a real risk that C could not in practice proceed in Brazil. This was because the only realistic way they could prosecute a relevant claim or obtain redress in Brazil was with private legal representation using a form of conditional fee agreement, and on the facts of the case there was real risk that this would not be available.

A link to the judgment is here.