In Re: Municipality of Mariana & Others

District Court, S.D. Florida·Decided December 3, 2024·No. 1:24-cv-22918·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 24-CV-22918-BLOOM/Elfenbein

IN RE EX PARTE APPLICATION OF THE MUNICIPALITY OF MARIANA & OTHERS FOR AN ORDER UNDER 28 U.S.C. § 1782

_______________________________/

ORDER ON MOTION FOR PROTECTIVE ORDER

THIS CAUSE is before the Court upon Movant Jacques Nasser’s (“Movant”) Motion for a Protective Order (the “Motion”), ECF No. [40]. Claimants in Município de Mariana and Others v. BHP Group (UK) LTD and BHP Group LTD, No. HT-2022-000304 (“Applicants”) filed a Response in Opposition to the Motion (the “Response”), ECF No. [43]. The Honorable Beth Bloom referred the Motion to the undersigned for disposition. See ECF No. [41]. Having considered the Parties’ filings and the relevant law, the Motion is GRANTED in part and DENIED in part. I. BACKGROUND The instant case began with Applicants’ ex parte Application for Judicial Assistance filed pursuant to 28 U.S.C. § 1782 (the “Application”), which requested this Court’s permission to depose Movant — an individual residing in this District — for use in a suit concerning the Fundão Dam disaster pending in the High Court of Justice in London, England (the “English Litigation”), against BHP Group (UK) Ltd. and BHP Group Ltd. (the “English Defendants”). See ECF No. [1- 2] at 1. For context, Samarco Mineração S.A. (“Samarco”) operated the Fundão Dam. See ECF No. [1-3] at 2. The English Defendants, via intermediary subsidiaries, have a 50% interest in Samarco. See id. The Fundão Dam existed near Belo Horizonte, Brazil, and it collapsed on November 5, 2015. See id. at 21. Applicants allege that Samarco operated and used the Fundão Dam to store toxic wastewater, known as tailings, generated by Samarco’s nearby iron ore mining operations. See id. The Fundão Dam’s collapse released approximately 50 million cubic meters

of tailings, which destroyed nearby villages, killed 19 people, and caused destruction along the length of the Rio Doce basin. See id. at 2. In 2006, Movant was appointed as a non-executive director of the English Defendants. See ECF No. [1-2] at 1-2; ECF No. [5] at 4. In March 2010, Movant was non-executive Chairman of the Board of the English Defendants, serving in that capacity until August 2017. See ECF No. [1- 2] at 1-2. Due to this leadership role, Applicants assert that Movant is uniquely well-suited to testify on central issues in the English Litigation, such as: (1) The degree to which the English Defendants and their affiliates knew about risks relating to the Fundão Dam;

(2) The English Defendants’ decisions, acts, or omissions in the face of known risks relating to the Fundão Dam;

(3) The English Defendants’ overall strategy and risk management in relation to their Brazilian subsidiary operations and the Fundão Dam, including the results of internal investigations and analyses; and

(4) The English Defendants’ corporate structure, including the roles and relationships of various entities that played a role in BHP’s control over, supervision, management, and funding of their Brazilian entity.

Id. at 2. Applicants explained that they require the Court’s assistance in taking Movant’s deposition because he is beyond the High Court of Justice’s jurisdiction as he is not a party to the English Litigation and is no longer a director of the English Defendants. See id. On this record, Judge Bloom entered an order granting the Application, which subsequently led to Applicants issuing a subpoena (the “Subpoena”) on Movant. See ECF No. [4] at 1-2. 2 Movant then moved to quash the Subpoena on the ground that the apex doctrine protected Movant from deposition. See generally ECF No. [5]. Judge Bloom referred the Motion to Quash to the undersigned, resulting in its denial. See generally ECF No. [36]. In the Order on the Motion to Quash (the “Motion to Quash Order”), the Court reasoned that Applicants could depose Movant

under the apex doctrine because Movant possesses unique, non-repetitive, firsthand knowledge of the facts at issue in the English Litigation and Applicants exhausted less intrusive means of acquiring the discovery they seek from Movant. See generally id. at 5-12. Despite denying the Motion to Quash, the Court granted Movant leave to file a motion for a protective order. See generally id. at 12-13. On November 5, 2024, Movant filed the instant Motion in which he urges the Court to “(1) limit Applicants’ questioning of [Movant] to the discrete topics on which the Court concluded he has unique, non-repetitive, and firsthand knowledge; and (2) accordingly limit [Movant’s] deposition to three hours.” ECF No. [40] at 4-5. With respect to his first request for relief, Movant argues that the apex doctrine permits reasonable limits on an apex witness’s deposition and that

the Court should impose such a limitation on the Subpoena because it fails to list the topics on which Applicants will question Movant and, therefore, it is impermissibly broad. See id. at 5-6. Specifically, Plaintiff insists that Applicants limit their deposition of Movant to questions relating to “(1) [Movant]’s membership [on] the Samarco Subcommittee, (2) his alleged involvement in the BHP Board’s alleged decision to increase production capacity at Samarco and the Board’s alleged oversight of Samarco’s health, safety, environment, and community relations, and (3) a statement [Movant] made concerning an October 2013 report[.]” Id. at 6 (quotations omitted). And as to his second request for relief, Movant asserts that the Court should temporally limit his deposition to three hours, “given the limited number of topics on which the Court concluded that

3 [Movant] has unique, non-repetitive, and firsthand knowledge[] and Applicants’ ability to ask tailored questions.” Id. at 8. On November 15, 2024, Applicants filed a Response in Opposition to the Motion in which they first argue the proposed subject-matter limitations would unnecessarily “omit key areas of his

relevant knowledge[.]” ECF No. [43] at 1. Second, Applicants argue that Movant’s “proposed three-hour time limit for his deposition is unwarranted and would simply operate as an arbitrary barrier to Applicants’ ability to obtain relevant testimony.” Id. at 2. On November 19, 2024, the Parties appeared before the Court for a hearing on the Motion (the “Hearing”). Both Parties presented their arguments, and the Court took the matter under advisement. With the Parties having fully briefed the instant matter and having had the benefit of oral argument, the instant Motion is now ripe for review. II. LEGAL STANDARDS The Federal Rules of Civil Procedure “strongly favor full discovery whenever possible.” Farnsworth v. Procter & Gamble Co., 758 F.2d 1545, 1547 (11th Cir. 1985) (citation omitted).

Rule 26(b) explicitly permits a party to obtain discovery of “any matter, not privileged, that is relevant to the claim or defense of any party.” Relevancy is “construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter[s] that could bear on, any issue that is or may be in the case.” Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 451 (1978) (footnote call number and citation omitted).

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