Minister Flávio Dino, of the Federal Supreme Court (STF), prohibited this Monday (14) that 46 municipalities affected by the disaster in the collapse of the Fundão dam, in Mariana (MG), which occurred in 2015, from paying legal fees in legal actions which are being processed in courts abroad.
The decision comes on the eve of the judgment of a collective case filed in the United Kingdom Court. The trial is scheduled to begin on October 21st, in London. The action involves around 620 thousand victims.
The injunction was granted by the minister after the Brazilian Mining Institute (Ibram), an entity that represents the largest mining companies in the country, filed a action in Court to challenge the possibility of companies being activated abroad by municipalities to collect damages caused in Brazil.
In the decision, Dino also determined that municipalities must provide the Supreme Court with copies of contracts signed with law firms and stop making any payments to lawyers who work on cases abroad.
In the minister’s understanding, municipalities cannot carry out so-called contracts ad exitumin which payment occurs if the case is won.
“In effect, the Federal Court of Auditors has already decided, in successive precedents, that illegal, illegitimate and uneconomical acts constitute successful stipulations in contracts with the Public Administration, even more so when associated with high rates of return on the value obtained in favor of the Public Power”, explained the minister.
Flávio Dino also highlighted that the decision does not address the effects of decisions from abroad on the case and the payment of compensation determined outside the country.
“It is pertinent to assess the conditions under which Brazilian municipalities litigate before foreign courts, since this aspect has consequences for part of the national public assets and for the effective and full reparation of damages perpetrated on Brazilian soil”, he added.
Understand
The decision represents another chapter in the new legal battle on compensation involving the collapse of the Fundão dam, which caused 19 deaths and caused damage to the populations of dozens of Minas Gerais and Espírito Santo communities along the Rio Doce basin. Since then, those involved have exchanged a series of accusations.
