BHP Group Limited v Impiombato
| Industry | Mining and resources |
|---|---|
| Headquarters | Australia |
BHP Group Limited v Impiombato represents a 2022 ruling by the High Court of Australia that affirmed the eligibility of foreign residents to participate as members in Australian class action proceedings.
Background
In November 2015, the Fundão dam in Brazil, operated by a joint venture between BHP and Vale, collapsed, triggering the Mariana dam disaster. This event led to the inundation of Bento Rodrigues village with hazardous waste, causing 19 fatalities and injuring more than 16 individuals.
A class action lawsuit was initiated in May 2018 within the Federal Court of Australia pursuant to Part IVA of the Federal Court of Australia Act 1976. The plaintiffs, who had purchased fully paid ordinary shares in BHP through overseas stock exchanges, alleged financial harm due to BHP’s failure to comply with continuous disclosure requirements under the Australian Securities Exchange Listing Rules and the Corporations Act 2001. Additionally, they sought compensation for conduct deemed misleading or deceptive under the Australian Securities and Investments Commission Act 2001 and the Corporations Act.
In 2020, Justice Moshinsky of the Federal Court dismissed BHP’s motion to exclude non-resident members from participating in the class action. Following this decision, BHP secured special leave to appeal to the High Court.
Decision
On 12 October 2022, the High Court issued its judgment and released its reasons on the same day. The Court questioned the rationale for restricting group membership to Australian residents when any individual within the group can serve as a representative party regardless of their residency—a position accepted by BHP. It concluded that Part IVA of the Federal Court of Australia Act does not contain any territorial or geographical restrictions on who may be included as class members. The High Court unanimously dismissed BHP’s reliance on section 21(1)(b) of the Acts Interpretation Act 1901 alongside the common law principle against extraterritorial application as grounds to exclude non-resident participants from the group.