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 Friday next week, while the final amount they will have to pay will be determined in further legal proceedings.
The case was brought by the Duke of Sussex, Sir Elton John, David Furnish, former Liberal Democrat deputy leader Sir Simon Hughes, racial justice campaigner Baroness Lawrence, and actresses Sadie Frost and Liz Hurley.
They accused ANL, the publisher of the Daily Mail and other newspapers, of unlawful information-gathering. The publisher denied the allegations.
On 7 July, Mr Justice Nicklin dismissed the claims. The seven claimants now have until 2 October to seek permission to appeal the decision.
The judge described the way the claims were presented as highly unreasonable. He was particularly critical of the fact that the claimants did not withdraw allegations of serious wrongdoing when they no longer had sufficient evidence to support them.
Justice Nicklin said serious allegations of criminality or grave misconduct should not remain against individuals when they are no longer being pursued.
He ruled that ANL’s legal costs should be assessed on an indemnity basis, which generally allows a successful party to recover a greater proportion of its costs.
However, the judge expressed serious concerns about ANL’s reported legal bill of more than £34 million. He described the amount as excessive and said there were questions over whether all of the costs had been reasonably incurred.
Despite those concerns, he declined to place a fixed ceiling on the amount ANL could ultimately recover, saying such a limit could be unfair and arbitrary.
The seven claimants had insurance covering up to £16.2 million of ANL’s legal costs if they lost the case. The judge’s decision means they could potentially face an additional liability of around £18 million, depending on the final assessment of the publisher’s costs.
ANL welcomed the ruling, describing it as a major criticism of the claimants’ case and of the allegations made against its journalists, editors and executives.
Sir Simon Hughes said he was disappointed by the judgment and was considering whether to appeal both the original decision and the costs ruling.
Prince Harry and Baroness Lawrence had previously criticised the court’s decision, saying they had gone to court seeking justice and accountability but had not received either.
The case involved extensive evidence from the claimants as well as current and former Associated Newspapers journalists and executives. Prince Harry travelled from the United States to attend court during the proceedings.
The latest ruling does not yet determine the final amount the seven claimants will have to pay. Detailed hearings over the publisher’s costs are expected to continue, meaning the dispute over the potentially £34.5 million bill is not yet over.
