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Prince Harry Ordered to Pay £9.5mn in Daily Mail Legal Costs

Financial Times Companies •
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Prince Harry and other public figures who lost a privacy lawsuit against the publisher of the Daily Mail have been ordered to pay an initial £9.5 million in legal costs. The High Court in London ruled that the losing parties, including Sir Elton John, must cover Associated Newspapers' costs on an indemnity basis, a more punitive calculation method. Mr. Justice Nicklin cited the speculative nature of the claims and the failure to establish evidential foundations for serious allegations including phone hacking and surveillance.

The ruling follows a 436-page judgment last month that found insufficient evidence for the claimants' allegations. The £9.5 million payment, due by 4pm on August 28, is an interim amount that may increase beyond the £16.2 million insurance coverage, potentially leaving claimants personally liable. Associated Newspapers reported £34 million in legal costs as of last month.

Lawyers for the claimants, led by Nicholas Bacon KC, argued that indemnity costs would allow the publisher to exceed budgetary constraints. The judge noted that Prince Harry's description of his earlier judgment as a "complete and obvious whitewash" did not influence the costs decision. Associated Newspapers called the ruling an overwhelming victory for the Mail and its journalism.