A London judge ruled Monday that the committee overseeing PGMBM's litigation agreement lacked the power to terminate the firm's contract. As Judge David Waksman put it, "The committee did not have the power to terminate the agreement by exercising the powers of individual clients on their behalf." The decision arose in a UK action filed by PGMBM Law, formerly Pogust Goodhead, against BHP Group Ltd and Vale SA, representing more than 600,000 Brazilians harmed by the 2015 Fundão dam disaster, with claimed damages of $36 billion. The court also flagged a major risk: the attempted firing could have left more than 400,000 Brazilians liable for hefty costs tied to litigation spending to date.
The dispute escalated last month when the client committee moved to replace PGMBM with Edward McCourt & Company. Edward McCourt is financed by North Wall Capital, includes former Pogust Goodhead partners among its team, and is coordinating with Bailey Glasser International, a US firm. PGMBM, which is supported by Gramercy Funds Management, challenged the committee's decision. "We will be analyzing the judgment in depth before deciding on our next steps," a committee spokesperson said. "As has always been the case, any decision will be made in the best interests of all claimants."
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Last year, the court held BHP liable and ordered compensation for victims, with a separate trial set for next year to decide the quantum. Meanwhile, tensions have grown between former Pogust Goodhead boss Thomas Goodhead and funder Gramercy since that courtroom win. Gramercy accused Goodhead of misusing his expense account and splurging on hotels and private planes - claims he denies. Last month, Goodhead revealed he was working with Edward McCourt & Company in its bid to take control.
This is a window into how giant lawsuits can become battlegrounds for private credit investors. With damages still to be decided next year, who controls the case can shape timelines, costs, and eventual payouts flowing to the funders behind it. The judge's warning about cost exposure for more than 400,000 claimants underscores how messy the financial plumbing can get when control shifts midstream.
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