Prince Harry and six other high profile figures have been ordered to make an initial payment of £9.54 million to the publisher of the Daily Mail following the dismissal of their privacy claims.
The High Court ruling could ultimately leave the seven claimants facing a much larger bill, potentially reaching £34.5 million, although the judge described that figure as excessive and raised concerns about whether all of the publisher's claimed costs were reasonably incurred.
Seven Claimants Ordered to Pay
The claimants include Prince Harry, Sir Elton John, David Furnish, Sir Simon Hughes, Sadie Frost, Liz Hurley and Baroness Doreen Lawrence.
They brought claims against Associated Newspapers Limited (ANL), alleging unlawful information gathering. ANL denied the allegations.
On 7 July, Mr Justice Nicklin dismissed the claims. The latest ruling concerns the legal costs arising from that failed case.
The seven claimants must pay the initial £9.54 million by 28 August, while they have until 2 October to seek permission to appeal.
Potential £34.5m Bill
The financial consequences could be significantly greater.
The claimants had insurance covering up to £16.2 million of ANL legal costs if they lost the case. However, the publisher has said it spent as much as £34.5 million defending itself.
That could potentially leave the claimants facing an additional bill of around £18 million, although the judge made clear that the full amount claimed should not simply be assumed to be recoverable.
Mr Justice Nicklin described a costs claim exceeding £34 million as on its face, excessiv and said there were genuine concerns about whether all of the costs had been reasonably incurred. Nevertheless, he declined to impose an overall ceiling on the amount ANL could recover, saying such a move could be unfair and arbitrary.
Judge Criticises Handling of Allegations
A significant part of the ruling focused on the way the claimants presented allegations during the case. The judge said it was striking that none of the serious allegations of wrongdoing had been voluntarily withdrawn. He argued that serious accusations involving criminality or grave misconduct should not remain against individuals when there is no longer a proper evidential basis for pursuing them. The judge described the claimants approach as highly unreasonable and said it did not represent a disciplined way of dealing with serious allegations.
Publisher Welcomes the Ruling
ANL welcomed the decision, describing it as a major criticism of what it characterised as an attempt to damage the newspaper and the reputations of its journalists, editors and executive. The publisher had sought an interim payment of more than £9.9 million, while lawyers representing the claimants argued that the payment should be closer to £7.9 million. The judge ultimately ordered the £9.54 million interim payment.
Claimants Consider an Appeal
Despite the financial setback, the case may not be completely over. The claimants have until 2 October to attempt to appeal the decision. Sir Simon Hughe said he was disappointed by the judgment and was taking time to consider whether to pursue appeals concerning the substantive judgment, the costs ruling, or both. Prince Harry and Baroness Doreen Lawrence had previously criticised the dismissal of their claims, saying they had gone to court seeking justice and accountability.
A High Profile Legal Battle
The case attracted considerable attention because of the identities of those involved and the allegations made against one of Britain major newspaper publishers. Prince Harry travelled from the United States to attend court in person, while numerous current and former ANL journalists and executives gave evidence during the trial and denied involvement in illegal activity. The dispute has therefore involved not only significant legal questions surrounding privacy and information gathering, but also potentially enormous financial consequences for everyone involved.
What Happens Next?
For now, the immediate deadline is 28 August, when the seven claimants are due to make the £9.54 million interim payment. The larger question of exactly how much ANL can ultimately recover will be determined through further consideration of its legal costs. Meanwhile, the claimants have until 2 October to seek permission to appeal. The ruling represents a major financial setback for Prince Harry and the other claimants, but the final cost of the long running legal battle remains to be determined.