Supreme Court Justice Flávio Dino has ruled that funds from the Mariana disaster settlement cannot be used for legal fees. The ruling ensures these funds, meant for recovery, are protected and highlights the legal obligations of municipalities involved in the settlement. Municipalities have a deadline to join, with many already confirming their participation.
On Tuesday, Supreme Court Justice Flávio Dino ruled against utilizing funds from the renegotiated Mariana disaster settlement for legal fees incurred by municipal administrations. The catastrophic dam collapse in Minas Gerais in November 2015 led to significant loss of life and extensive environmental damage.
Justice Dino emphasized that funds allocated to municipalities are intended solely for municipal assets without any deductions for legal fees unless explicitly stated in the agreement. This ruling aims to safeguard the integrity of the settlement funds dedicated to recovering from the disaster.
This landmark decision arose from Constitutional Violation Claim (ADPF) 1178, initiated by the Brazilian Mining Institute (IBRAM). The case deliberates the conditions under which municipalities may pursue legal action in foreign courts and mandates that they discontinue other lawsuits upon participating in the settlement that includes the federal government, Minas Gerais and Espírito Santo states, Samarco, BHP, and Vale.
Municipalities have a deadline until Thursday to join the settlement, which encompasses R$170 billion allocated for compensation and reparations, with R$132 billion being newly designated funds. Out of 49 eligible municipalities, 17 have opted to join the settlement, which requires them to withdraw any ongoing legal disputes to benefit from the financial recovery effort.
The ruling by Supreme Court Justice Flávio Dino prohibits the use of Mariana settlement funds for legal fees, ensuring that allocated resources are preserved for municipal recovery. This decision comes amid a significant restructuring of compensation following the 2015 disaster. Municipalities must act swiftly, as participation in the settlement requires the withdrawal of any existing legal claims, aiming for unified recovery efforts across affected regions.
Original Source: valorinternational.globo.com
