Município de Mariana & Ors v BHP Group (UK) Ltd & Anor

Município de Mariana & Ors v BHP Group (UK) Ltd & Anor

BHP is not bound by the arbitration clause in the Samarco Shareholders Agreement under Brazilian law, as it did not act as a true party to the contract or perform it in place of or alongside BHP Brasil. The matters in the Part 20 proceedings do not fall within the scope of the arbitration clause, as they do not concern breach of the Shareholders Agreement or technical matters as defined therein. Accordingly, Vale's application for a stay under section 9 of the Arbitration Act 1996 is dismissed.

Parties
Claimant: Município de Mariana & others; Defendant/part 20 Claimant/respondent: BHP Group (UK) Ltd; Defendant/part 20 Claimant/respondent: BHP Group Ltd; Part 20 Defendant (third Party)/applicant: Vale S.A.
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Application to Stay Proceedings Under Section 9 of the Arbitration Act 1996 / Judgment on Application for Stay
Outcome
Application dismissed
Legal Topics
Stay of Proceedings, Arbitration Agreement, Non Signatories to Arbitration, Interpretation of Arbitration Clauses, Contribution Claims, Jurisdiction, Abuse of Process
Arbitration Civil Procedure Environmental Law Company Law Stay of Proceedings Arbitration Agreement Non Signatories to Arbitration Interpretation of Arbitration Clauses +3 more

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Parties

Município de Mariana & others

Claimant

BHP Group (UK) Ltd

Defendant/part 20 Claimant/respondent

BHP Group Ltd

Defendant/part 20 Claimant/respondent

Vale S.A.

Part 20 Defendant (third Party)/applicant

Procedural Posture

Application to Stay Proceedings Under Section 9 of the Arbitration Act 1996 / Judgment on Application for Stay

Legal Issues

  1. 1 Whether BHP is bound by the arbitration clause in the Samarco Shareholders Agreement under Brazilian law
  2. 2 Whether the matters in the Part 20 proceedings fall within the scope of the arbitration clause
  3. 3 Whether Vale's application for a stay is an abuse of process

Ratio Decidendi

BHP is not bound by the arbitration clause in the Samarco Shareholders Agreement under Brazilian law, as it did not act as a true party to the contract or perform it in place of or alongside BHP Brasil. The matters in the Part 20 proceedings do not fall within the scope of the arbitration clause, as they do not concern breach of the Shareholders Agreement or technical matters as defined therein. Accordingly, Vale's application for a stay under section 9 of the Arbitration Act 1996 is dismissed.

Court Disposition

Application dismissed

Orders

  • Vale's application for a stay of the Part 20 proceedings under section 9 of the Arbitration Act 1996 is dismissed.