The Duke of Sussex and six other high-profile figures face a wait to find out how many millions of pounds they will have to initially pay to the Daily Mail's publisher in legal costs after their failed High Court case.
The group, including Baroness Doreen Lawrence and Sir Elton John, sued Associated Newspapers Limited (ANL) over allegations of unlawful information-gathering. ANL strongly denied the claims, which were heard at an 11-week trial in London earlier this year. On July 7, Mr Justice Nicklin dismissed all the cases.
Costs hearing
The cases returned to the High Court this week for a two-day hearing over costs, where the court was told ANL's total costs were more than £34 million. Prince Harry and the other claimants could have to pay millions of pounds out of their own pockets to cover the costs.
At the end of the hearing on Thursday, Mr Justice Nicklin said he would give his decision on the size of an initial payment the group will make to ANL, as well as how the costs will be assessed, in a written ruling next month. The judge described the size of the costs as “unprecedented” for a High Court media law case.
Interim payment
ANL, which also publishes The Mail on Sunday, has asked for more than £9.9 million as an interim payment ahead of future hearings to decide its legal costs in depth. Antony White KC, for the publisher, said in written submissions that there was “no dispute that Associated is entitled to payments on account of its costs” from the group. The court was later told this would be a “global” figure that could be split between the group.
Lawyers for the group, also including David Furnish, Sadie Frost, Liz Hurley and Sir Simon Hughes, said the interim payment should be just over £7.9 million. Nicolas Bacon KC, for the group, said in written submissions that the level of interim payment sought by ANL was “manifestly excessive”.
Indemnity basis dispute
Mr White said the legal claims were brought for a “collateral purpose” of trying to pressure the Government into introducing the second stage of the Leveson Inquiry, describing it as “a campaign rather than ordinary and reasonable litigation”. However, speaking on behalf of Sir Simon on Thursday, Mr Bacon said the former MP's claim was “limited”, adding: “He wishes to make it clear through me that he was not a campaigner against Associated. He made no public statements adverse to Associated or its employees.”
During the hearing, lawyers for ANL said the group should pay on an indemnity rather than a standard basis, which would be more favourable to ANL in terms of the amount they can recover. Mr Bacon later said in written submissions that it could be “very significant” if the group had to pay ANL's costs on this stricter basis and could lead to them being without enough insurance cover.
Mr Bacon said ANL's incurred costs as of earlier this month were nearly £34.5 million, which “exceed its approved budget” by more than £18.6 million. The barrister added that the group had obtained insurance cover of a combined £16.2 million. He continued: “If the claimants were required to pay Associated's costs on the indemnity basis, however, the current level of cover would be insufficient to meet their total costs exposure, possibly to the tune of many millions of pounds.”
Mr Justice Nicklin said the claimants would need to pay the interim payment on August 28, adding: “They are going to be paying a sum of money that I will confirm in the judgment.” He is expected to give his written ruling in the week of August 17.
