Prince Harry and six other public figures have been ordered to pay more than £9.5 million to the publisher of the Daily Mail as an initial contribution towards legal costs following their failed High Court case.
The group, which also includes 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 during an 11-week trial in London earlier this year.
Judge dismisses all cases
Mr Justice Nicklin dismissed all the cases in a ruling on July 7. The cases returned to the High Court for a two-day hearing on costs, during which the court was told ANL's total costs exceeded £34 million.
In a judgment delivered today, Mr Justice Nicklin ruled that the group of seven must pay £9,544,355 by August 28 as an initial payment towards the publisher's costs, ahead of further hearings to determine the total sum.
Indemnity basis ruling
Mr Justice Nicklin said: "The claimants and their advisers have been on notice, since the hearing, that this would be the date for payment on account."
He also ruled that ANL's costs should be assessed on an indemnity basis, which is more favourable to the publisher in terms of the amount it can recover, except where orders had already been made.
ANL, which also publishes the Mail on Sunday, had sought more than £9.9 million as an interim payment, while lawyers for the claimants — which also include David Furnish, Sadie Frost, Liz Hurley, and Sir Simon Hughes — argued the interim payment should be just over £7.9 million.
Concerns over costs
During a hearing in July, ANL said the group should pay the total costs on the indemnity basis, which is rare and means the publisher does not need to show its costs are proportionate or adhere to the court's previous budget.
However, Nicholas Bacon KC, for the group, said in written submissions that it could be "very significant" if the group of seven had to pay ANL's costs on this stricter basis, and could leave them without enough insurance cover.
The judgment comes after Wednesday's news that the Duke of Sussex and his wife, Meghan Markle, will return to the UK for an "extended period". More than six years ago, the couple relocated to California with their two children, Archie, seven, and Lilibet, five, amid the "Megxit" crisis as they stepped back from royal duties. They are set to return to Britain later this month to live in a non-royal residence outside London, and the children will start a new school in September.
