Supreme Court Rules Against Use of Mariana Settlement Funds for Legal Fees

Brazil’s Supreme Court ruled that Mariana disaster settlement funds cannot be used for legal fees for foreign law firms. Justice Flávio Dino emphasized that the funds belong exclusively to municipal assets. Municipalities must join the settlement by Thursday, with 17 of 49 confirming participation.

On Tuesday, Brazil’s Supreme Court Justice Flávio Dino declared that the funds from the renegotiated Mariana disaster settlement cannot be utilized for legal fees or expenses associated with foreign law firms. This ruling pertains to a dam collapse in Minas Gerais in November 2015 that claimed 19 lives and caused significant environmental destruction.

The Supreme Court’s decision underscores the importance of allocating settlement funds exclusively to municipal purposes. Eligible municipalities are urged to join the settlement while acknowledging that participation entails forfeiting ongoing legal actions. As of now, 17 out of 49 municipalities have confirmed their intent to participate.

Original Source: valorinternational.globo.com