Prince Harry and six other public figures could face a legal bill of up to £34.5 million after losing their privacy case against the publisher of the Daily Mail.A High Court judge has ordered the seven claimants to make an initial payment of £9.54 million to Associated Newspapers Limited (ANL) by next Friday.
The group, which includes Harry, Sir Elton John, David Furnish, Sir Simon Hughes, Baroness Doreen Lawrence, Sadie Frost and Liz Hurley, had brought claims against the newspaper publisher over alleged unlawful information-gathering. ANL denied the allegations.The case was dismissed by Mr Justice Nicklin on 7 July.
The judge has now ruled that the claimants should pay the publisher’s legal costs on an indemnity basis, potentially allowing ANL to recover significantly more than the costs originally agreed before the trial.The publisher says it spent around £34.5 million defending the case. The claimants had insurance covering up to £16.2 million of ANL’s costs, meaning they could potentially face an additional bill of around £18 million if the full amount is eventually recovered.However, the judge raised concerns about the size of the publisher’s legal bill, describing the £34 million-plus figure as exceptionally high and saying there were questions about whether all of the costs claimed were reasonable.
Despite those concerns, he decided not to place a fixed limit on how much ANL could recover, saying such a cap could be unfair.Justice Nicklin also criticised the way the claimants handled some serious allegations made during the case. He said allegations of criminal behaviour or serious wrongdoing should be withdrawn when there is no longer a proper basis for making them.The judge described the claimants’ approach as highly unreasonable.
ANL welcomed the ruling, describing it as a major criticism of the case and an attempt to damage the newspaper and the reputations of its journalists and executives.The claimants have until 2 October to seek permission to appeal the judgment.Sir Simon Hughes said he was disappointed by the decision and that he was taking time to consider whether to appeal either the main judgment, the costs ruling, or both.Harry and the other claimants had previously expressed disappointment over the outcome, maintaining that they had gone to court seeking justice and accountability.
The latest ruling does not necessarily settle the final amount the group will have to pay. Detailed hearings will now determine which of ANL’s claimed legal costs can ultimately be recovered.A legal costs specialist said the ruling was a significant victory for Associated Newspapers because the publisher would no longer be restricted by the costs budget previously approved by the court.However, the specialist noted that the judge’s criticism of the £34.5 million figure could become important when the final costs are assessed.
