"These allegations and threatened claims are entirely without merit and BHP rejects and will vigorously contest them." The BHP spokesperson pointed to last year's compensation deal, saying: "We continue to believe Brazil is the most appropriate, effective, and efficient place for compensation for the Fundao dam failure from Samarco to be delivered." Pogust Goodhead's threat of legal action – in a so-called "letter before action" that is required as part of the process – is the latest development in the litigation, after the High Court last month ruled BHP should face a full contempt of court hearing for funding parallel litigation in Brazil. BHP, meanwhile, still awaits judgment following a trial of the underlying lawsuit over the dam collapse, in which Pogust Goodhead said it was seeking damages of up to 36 billion pounds.