In her weekly newsletter, Roula Khalaf, Editor of the Financial Times, highlights compelling stories that resonate with current events. Among them is the remarkable journey of Tom Goodhead, a lawyer who began his career navigating the unglamorous world of personal injury cases, which included a variety of incidents such as medical negligence and car accidents. One case even involved a patron who fell at a local establishment called The Tumble Inn. Fast forward to today, and Goodhead is now spearheading what many consider to be the largest case in British legal historya monumental 36 billion class action against Australias BHP Billiton, stemming from a disastrous mining incident in Brazil.

Goodheads firm, Pogust Goodhead, is representing nearly 640,000 victims of the Mariana dam collapse, a catastrophic event that occurred in 2015 and resulted in the tragic loss of 19 lives, the displacement of thousands of residents, and significant ecological devastation. With the recent conclusion of a prolonged 12-week civil trial in the High Court, a judgment is anticipated before the summer, which could define the future of corporate accountability in this high-stakes legal battle.

Its probably the largest class action ever brought in the English courts, Goodhead noted. For the affected families, this legal effort embodies a pursuit of justice, aimed at holding one of the world's largest mining companies accountable for its actions. Goodhead remarked, Weve got a huge amount riding on it, emphasizing the cases implications for both the victims and his firm. The stakes are particularly high for Pogust Goodhead, a relatively young litigation boutique that, despite its ambitious goals, reported an operating loss of 52 million in its latest financial disclosures.

The firms financial statement revealed a turnover of 53 million but also flagged a concerning material uncertainty regarding its ability to continue as a going concern, primarily due to its substantial funding requirements. Goodhead responded to these concerns, describing the 2022 loss as entirely unsurprising, and explained that the firm has been growing at a pace reminiscent of a Silicon Valley startup rather than a traditional law firm. He reassured that his firm has the unequivocal backing of its lenders, indicating a robust support system as they navigate these challenging financial waters.

Pogust Goodhead specializes in consumer protection and environmental litigation and has previously estimated the damages from the Mariana disaster could amount to as much as 36 billion, adjusting for inflation and interest. The firm operates under a no win, no fee agreement, charging claimants a fee ranging from 20% to 30%. Notably, for clients belonging to indigenous communities, Pogust Goodhead is providing legal services pro bono, underscoring their commitment to social justice.

The implications of this case extend far beyond the courtroom, affecting BHP, which co-owns the Samarco iron ore complex where the tragedy unfolded. The lawsuit has led to a mixed perception of Pogust Goodhead, with critics labeling it as a crusader for justice while others accuse it of exploiting the disaster. Rafael Valim, a lawyer at Warde Advogados who has represented the Brazilian mining lobby Ibram, expressed concerns that this London lawsuit undermines Brazils judicial sovereignty, stating, This action in London is part of a movement to discredit the Brazilian justice system.

In addition to high-profile cases such as faulty medical implants and mis-sold car finance, Pogust Goodhead has carved out a niche in bringing international corporate misconduct to the courts in England, Germany, and the Netherlands. The rationale behind pursuing the BHP case in England is rooted in concerns over the slow judicial processes in Brazil, which may hinder timely justice for the victims. In this context, a judge in England allowed the case to proceed partly because BHP had a parent company based in London at the time of the incident.

A series of recent jurisdictional decisions concerning group claims against multinationals with parent companies in London indicate this trend may continue, commented Ted Greeno, the London co-managing partner of the litigation firm Quinn Emanuel Urquhart & Sullivan, which is not involved in the Mariana case. Law firms, whether large or small, can capitalize on such a shift given the right funding, he added.

Goodhead founded Pogust Goodhead in Liverpool in 2018 alongside Harris Pogust, a U.S. lawyer known for his lavish lifestyle showcased on social media. The firm has experienced notable success, achieving significant milestones in cases like the British Airways data breach and the Volkswagen emissions scandal. With a team of approximately 120 lawyers, Pogust Goodhead has established a 200 million bonus pool and commits to paying junior lawyers as much as 2 million each over a three-year period, a compensation model made feasible through investments from U.S. hedge fund Gramercy.

Gramercys funding of 450 million for the BHP case stands as the largest amount ever dedicated to litigation finance for a claimant law firm, as proclaimed by Goodhead. However, the pursuit of such substantial financial rewards has not come without challenges. Former employees have recounted experiences of long working hours and a demanding workplace culture. One ex-lawyer described working 17-hour days and expressed concerns about burnout, while another mentioned a competitive atmosphere where promotions were sometimes awarded based on personal rapport with Goodhead rather than merit. Goodhead acknowledged the demanding nature of the work, stating, I acknowledge that our hours are brutal, but the pressures associated with work of this nature are not for the faint-hearted. He dismissed claims of favoritism, asserting that he promotes the most capable individuals dedicated to success.

The BHP case, initiated three years after the catastrophic dam failure at Samarcos mine, is now a focal point for Pogust Goodhead and has garnered significant public interest. Despite the companys claims of resolving the matter through a $23 billion settlement with Brazilian authorities, Goodhead argues that this agreement falls short. He emphasized that only 40% of the London claimants would be eligible for compensation under the new settlement, reinforcing the necessity of pursuing justice through the courts. We started the case in 2018 because the companies were doing nothing, he said, reflecting the deep mistrust towards the companies involved.

As the firm continues to manage a growing caseload, including lawsuits related to environmental degradation and corporate misconduct, the Mariana case remains the most significant, with legal expenses exceeding 250 million. A successful outcome would not only validate their efforts but also reward both Gramercy and So Paulo-based Prisma Capital for their financial support. Goodhead described the investment from Gramercy as a capitalist solution to the negative externalities of capitalism, encapsulating the complexities of funding litigation in pursuit of justice.

If BHP is found liable, determining the amount owed will necessitate a separate trial set for October 2026, where claimants will need to demonstrate their losses. Vale, the Brazilian partner in the Samarco venture, has agreed to share any financial liability resulting from the ruling. In Brazil, opposition to the lawsuit persists, with critics condemning advanced payments made to local governments involved in the London claim. Goodhead has defended these actions, while also facing scrutiny from the Brazilian supreme court, which ruled that municipalities could not use funds from the previous settlement to cover legal fees.

Goodhead has characterized a complaint to the Brazilian Bar Association regarding his firm as malicious and unfounded, framing it as part of a broader strategy of lawfare aimed at discrediting his efforts. Recently, Pogust Goodhead had to lay off approximately 160 employees, accounting for around 20% of its workforce, primarily in business services, due to unresolved cases. However, Goodhead reassured stakeholders that the firm is not existentially threatened by these challenges, noting, ultimately, if we were unsuccessful, its not going to end my firm. He acknowledged the critical importance of this case for their reputation, financial stability, recruitment, and overall confidence in their mission.

This story is further informed by contributions from Beatriz Langella in So Paulo, illustrating the global dimensions of the legal battle unfolding in the wake of the Mariana disaster.