BHP Secures Dismissal of All Claims in Puerto Rico Climate Litigation

Cleary Gottlieb represented BHP Group Limited (BHP) in defending against climate-related lawsuits filed by 37 Puerto Rico municipalities and by the Municipality of San Juan. The firm successfully secured dismissal of all claims against BHP in two actions pending in the U.S. District Court for the District of Puerto Rico—one class action filed in November 2022 by 37 municipalities and a substantively identical action filed in December 2023 by the Municipality of San Juan. The complaints asserted federal and Puerto Rico law claims, including federal RICO and Sherman Act counts, alleging decades-long misrepresentations about the climate impacts of fossil fuels that allegedly contributed to the destructive 2017 hurricanes. BHP pressed an individual Rule 12(b)(2) personal jurisdiction defense, challenging plaintiffs’ jurisdictional allegations. Plaintiffs had primarily relied on the theory that BHP imported coal into Puerto Rico from certain Colombian mines that they alleged BHP owned and controlled. Cleary submitted declarations and documentary evidence refuting plaintiffs’ factual allegations and demonstrating that BHP had no ownership interest in the mines, that the corporate separateness of BHP’s subsidiaries must be respected, and that veil-piercing was unwarranted. The courts granted BHP’s individual Rule 12(b)(2) motions, finding the plaintiffs’ sole jurisdictional allegation insufficient and concluding that BHP, an Australian-based foreign defendant served abroad, was not amenable to jurisdiction under the asserted nationwide-service provision. The courts also granted the defendants’ joint Rule 12(b)(6) motion to dismiss with prejudice on statute of limitations grounds, finding “overwhelming evidence” that plaintiffs knew or should have known by September 2021 of the alleged injuries and the identity of potential defendants. The Puerto Rico municipalities have appealed the dismissal orders; the Municipality of San Juan does not appear to challenge BHP’s dismissal in its appeal. Cleary continues to monitor the appellate posture and stands prepared to defend BHP’s jurisdictional victory. Cleary Gottlieb represented BHP Group Limited with a team composed by: partner Victor Hou; counsel Boaz Morag; counsel Charity Lee; associates Isabella Riishojgaard; Deandra Fike.

BHP Secures Dismissal of All Claims in Puerto Rico Climate Litigation

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