BHP Group Limited v Impiombato

Last updated
BHP Group Limited v Impiombato
Coat of Arms of Australia.svg
Court High Court of Australia
Full case nameBHP Group Ltd v. Vince Impiombato & Anor
Decided12 October 2022
Citation(s) [2022] HCA 33
Transcript(s)
Court membership
Judge(s) sitting Kiefel CJ, Gageler, Gordon, Edelman, Steward
Case opinions
Part IVA of the Federal Court of Australia Act 1976 permits representative proceedings to be brought on behalf of group members who are not resident in Australia

BHP Group Limited v Impiombato was a case heard by the High Court of Australia in 2022, which held that foreign residents can be group members in an Australian class action. [1] [2]

Contents

Background

In November 2015, the Fundão dam in Brazil, owned by a joint venture between BHP and Vale, [3] ruptured, resulting in the Mariana dam disaster. The village of Bentro Rodrigues was almost entirely flooded by toxic water and mud. The final death toll was 19, with more than 16 injured. [4] [5]

A class action was lodged in May 2018 in the Federal Court [6] under Part IVA of the Federal Court of Australia Act 1976 by people who contracted to acquire an interest in fully paid-up ordinary shares in BHP through various international stock exchanges. The members of the class action alleged that they suffered loss due to BHP's contravention of continuous disclosure obligations as set out by the Australian Securities Exchange Listing Rules and the Corporations Act 2001 . They further alleged that they suffered loss due to BHP acting in misleading or deceptive conduct, disallowed under the Australian Securities and Investments Commission Act 2001 and the Corporations Act. [1]

In 2020, in Impiombato v BHP Group Ltd (No 2), Justice Moshinsky of the Federal Court refused BHP's application to strike the claims of group members in the class action who were not residents of Australia. [7] BHP applied and was granted special leave to appeal to the High Court of Australia.

Decision

The High Court's decision was handed down on 12 October 2022, with its reasons published the same day. [8] In the published reasons, the Court asked why "If a person in the pool can become a representative party irrespective of their place of residence, as BHP accepts, why can a person in the pool become a group member only if resident in Australia?". The Court found that Part IVA of the Federal Court of Australia Act does not geographically or territorially restrict the ability of a person to be a part of a class action. BHP's argument that section 21(1)(b) of the Acts Interpretation Act 1901 and the common law presumption against extraterritoriality should both be applied to this case so that Part IVA must be interpreted as not permitting group members who are not resident in Australia was unanimously rejected. [1]

Related Research Articles

A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law, have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers.

Jurisdiction is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, the concept of jurisdiction applies at multiple levels.

Sovereign immunity, or crown immunity, is a legal doctrine whereby a sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution, strictly speaking in modern texts in its own courts. State immunity is a similar, stronger doctrine, that applies to foreign courts.

Vexatious litigation is legal action which is brought solely to harass or subdue an adversary. It may take the form of a primary frivolous lawsuit or may be the repetitive, burdensome, and unwarranted filing of meritless motions in a matter which is otherwise a meritorious cause of action. Filing vexatious litigation is considered an abuse of the judicial process and may result in sanctions against the offender.

Disfranchisement, also disenfranchisement or voter disqualification is the restriction of suffrage of a person or group of people, or a practice that has the effect of preventing a person exercising the right to vote. Disfranchisement can also refer to the revocation of power or control of a particular individual, community or being to the natural amenity they have; that is to deprive of a franchise, of a legal right, of some privilege or inherent immunity. Disfranchisement may be accomplished explicitly by law or implicitly through requirements applied in a discriminatory fashion, through intimidation, or by placing unreasonable requirements on voters for registration or voting. High barriers to entry to the political competition can disenfranchise political movements.

<span class="mw-page-title-main">BHP</span> Australian multinational mining and petroleum company

BHP Group Limited is an Australian multinational mining and metals public company headquartered in Melbourne, Victoria, Australia.

Australian constitutional law is the area of the law of Australia relating to the interpretation and application of the Constitution of Australia. Legal cases regarding Australian constitutional law are often handled by the High Court of Australia, the highest court in the Australian judicial system. Several major doctrines of Australian constitutional law have developed.

<i>Commonwealth v Tasmania</i> 1983 Australian constitutional law case

Commonwealth v Tasmania was a significant Australian court case, decided in the High Court of Australia on 1 July 1983. The case was a landmark decision in Australian constitutional law, and was a significant moment in the history of conservation in Australia. The case centred on the proposed construction of a hydro-electric dam on the Gordon River in Tasmania, which was supported by the Tasmanian government, but opposed by the Australian federal government and environmental groups.

In law, an alien is any person who is not a citizen or a national of a specific country, although definitions and terminology differ to some degree depending upon the continent or region. More generally, however, the term "alien" is perceived as synonymous with foreign national.

The judiciary of Australia comprises judges who sit in federal courts and courts of the States and Territories of Australia. The High Court of Australia sits at the apex of the Australian court hierarchy as the ultimate court of appeal on matters of both federal and State law.

<span class="mw-page-title-main">Maurice Blackburn (law firm)</span>

Maurice Blackburn Lawyers,, was founded in 1919 by Maurice Blackburn. The firm is an Australian plaintiff law firm, having represented clients in a number of high-profile cases since its establishment.

<span class="mw-page-title-main">Aboriginal title</span> Concept in common law of indigenous land rights persisting after colonization

Aboriginal title is a common law doctrine that the land rights of indigenous peoples to customary tenure persist after the assumption of sovereignty to that land by another colonising state. The requirements of proof for the recognition of aboriginal title, the content of aboriginal title, the methods of extinguishing aboriginal title, and the availability of compensation in the case of extinguishment vary significantly by jurisdiction. Nearly all jurisdictions are in agreement that aboriginal title is inalienable, and that it may be held either individually or collectively.

Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices to gain an advantage over competitors or to mislead consumers. They may also provide additional protection for the general public which may be impacted by a product even when they are not the direct purchaser or consumer of that product. For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.

Mitigation in law is the principle that a party who has suffered loss has to take reasonable action to minimize the amount of the loss suffered. As stated by the Canadian Federal Court of Appeal in Redpath Industries Ltd. v. Cisco (The), "It is well established that a party who suffers damages as a result of a breach of contract has a duty to mitigate those damages, that is to say that the wrongdoer cannot be called upon to pay for avoidable losses which would result in an increase in the quantum of damages payable to the injured party." The onus on showing a failure to mitigate damages is on the defendant. In the UK, Lord Leggatt describes the "function of the doctrine of mitigation" as enabling the law

to distinguish between effects on the claimant's financial position which are to be regarded as caused by the defendant's breach of contract and for which damages can therefore be recovered and effects which are attributed to the claimant's own action or inaction in response to the breach and for which the defendant is not liable.

Polygamy is not legally recognised in Australia. Legally recognised polygamous marriages may not be performed in Australia, and a person who marries another person, knowing that the previous marriage is still subsisting, commits an offence of bigamy under section 94 of the Marriage Act 1961, which carries a maximum penalty of 5 years imprisonment. However, the offence of bigamy only applies to attempts to contract a legally recognised marriage; it does not apply to polygamous marriages where there is no attempt to gain recognition for the marriage under Australian law. Whether or not either or both partners were aware of the previous subsisting marriage, the second marriage is void. Foreign polygamous marriages are not recognized in Australia. However, a foreign marriage that is not polygamous but could potentially become polygamous at a later date under the law of the country where the marriage took place is recognized in Australia while any subsequent polygamous marriage is not. While under Australian law a person can be in at most one legally valid marriage at a time, Australian law does recognise that a person can be in multiple de facto relationships concurrently, and as such entitled to the legal rights extended to members of de facto relationships.

<i>Potter v Broken Hill Pty Co Ltd</i> Judgement of the High Court of Australia

Potter v Broken Hill Pty Co Ltd, was a significant Australian court case, decided in the High Court of Australia on 20 March 1906. The case was an influential decision in Australian Private International Law which is generally regarded as based on an extension of the Moçambique rule to actions for infringement of patents.

<span class="mw-page-title-main">Mariana dam disaster</span> 2015 environmental disaster near Mariana, Minas Gerais, Brazil

The Mariana dam disaster, also known as the Bento Rodrigues or Samarco dam disaster, occurred on 5 November 2015, when the Fundão tailings dam at the Germano iron ore mine of the Samarco Mariana Mining Complex near Mariana, Minas Gerais, Brazil, suffered a catastrophic failure, resulting in flooding that devastated the downstream villages of Bento Rodrigues and Paracatu de Baixo, killing 19 people. The extent of the damage caused by the tailings dam collapse is the largest ever recorded with pollutants spread along 668 kilometres (415 mi) of watercourses.

<span class="mw-page-title-main">Right of expatriates to vote in their country of origin</span>

The right of expatriates to vote in elections in their country of origin varies depending on the legislation of an expatriate's country of origin. Some countries grant their expatriate citizens unlimited voting rights, identical to those of citizens living in their home country. Other countries allow expatriate citizens to vote only for a certain number of years after leaving the country, after which they are no longer eligible to vote. Other countries reserve the right vote solely to citizens living in that country, thereby stripping expatriate citizens of their voting rights once they leave their home country.

<i>Wotton v Queensland</i> (No 5) 2016 Australian class action lawsuit

Wotton v Queensland is a class action lawsuit brought against the State of Queensland and the Commissioner of the Queensland Police Service on behalf of 447 Aboriginal Australians and Torres Strait Islanders who live on Palm Island in Queensland, Australia.

<i>Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd</i> Judgement of the High Court of Australia

CFMEU v BHP Coal Pty Ltd is a decision of the High Court of Australia. It was an appeal brought by an Australian labour union against a subsidiary of BHP Billiton named BHP Coal Pty Ltd.

References

  1. 1 2 3 "Judgment Summary" (PDF). High Court of Australia .
  2. "Shareholder class action update: Full Federal Court rules foreign residents can be group members in Australian class actions". Clayton Utz . Retrieved 2022-11-12.
  3. Ridley, Kirstin (2022-07-08). "Miner BHP loses appeal against $6 billion-plus Brazil dam case". Reuters . Retrieved 2022-11-12.
  4. "Dam burst at mining site devastates Brazilian town". Al Jazeera . Retrieved 2022-11-12.
  5. "Brazil dam burst: Six months on, the marks left by sea of sludge". BBC News . 2016-05-06. Retrieved 2022-11-12.
  6. "High Court shuts down BHP move to block access to class action". Phi Finney McDonald. Retrieved 2022-11-12.
  7. Blackburn, Maurice. "Court allows foreign residents to register in BHP class action". Maurice Blackburn Lawyers . Retrieved 2022-11-12.
  8. "BHP Group Limited v Vince Impiombato & Anor". High Court of Australia.