Prince Harry and six other high-profile individuals face a potential legal bill of up to £34.5 million following a High Court ruling regarding their unsuccessful privacy lawsuit against Associated Newspapers Limited (ANL). The claimants, who also include Sir Elton John, his husband David Furnish, actress Liz Hurley, actress Sadie Frost, former Liberal Democrat deputy leader Sir Simon Hughes, and racial justice campaigner Baroness Lawrence, have been ordered to make an initial payment of £9.54 million to the publisher by next Friday.
The legal battle centers on claims of unlawful information-gathering, which were dismissed by Mr Justice Nicklin on July 7. While the claimants had previously secured insurance to cover up to £16.2 million of the publisher’s legal costs, the recent court order means ANL may now seek to recover the full £34.5 million it claims to have spent defending the action. This leaves the group facing a potential shortfall of approximately £18 million.
In his ruling, Mr Justice Nicklin criticized the claimants for their conduct during the proceedings, describing their failure to withdraw serious allegations as “unreasonable to a high degree.” He noted that it was “striking” that not a single allegation of serious wrongdoing was voluntarily retracted by the group, stating that such accusations of criminality or grave impropriety cannot be left hanging over individuals without a proper evidential basis.
The judge decided to allow ANL’s costs to be determined on an indemnity basis, a move that is generally more favorable to the publisher regarding recovery. However, the judge also expressed significant reservations about the total bill submitted by the newspaper group. He described the £34.5 million figure as “on its face, excessive” and raised concerns regarding whether all of the claimed costs were reasonably incurred.
Despite these concerns, the judge declined to set a hard ceiling on the recoverable costs, arguing that such a measure would be too broad and potentially arbitrary. He emphasized that the court must ensure fairness, noting that while the claimants were not found to be dishonest in their evidence, the manner in which they presented their case was deeply flawed.
Associated Newspapers welcomed the decision, characterizing the ruling as a “devastating critique” of an attempt to damage the reputations of its journalists and executives. Conversely, the claimants have expressed deep dissatisfaction with the outcome. In a joint statement, Prince Harry and Baroness Lawrence described the court’s decision as a “complete and obvious whitewash,” adding that they had sought justice and accountability but received neither.
Sir Simon Hughes, who was also part of the legal action, stated he was “disappointed” by the judgment and is currently reviewing the decision to determine whether to pursue an appeal. The Duke of Sussex and the other six claimants have until October 2 to file an appeal against the ruling.
Legal experts suggest the matter is far from settled. Colin Campbell, a specialist costs judge at the firm Kain Knight, observed that the order represents a significant victory for the publisher by removing the constraints of previously approved budgets. However, he noted that the judge’s scathing remarks about the excessive nature of the bill could prove highly significant when the final recovery amounts are eventually determined.
The trial, which saw the Duke of Sussex travel from the United States to provide evidence in person, involved testimony from dozens of witnesses, including numerous current and former journalists and executives from Associated Newspapers who denied engaging in illegal activities. The legal proceedings concluded shortly before reports emerged regarding Prince Harry and Meghan’s plans for their children, Prince Archie and Princess Lilibet, to begin school in the UK this September. The report also notes that or no longer has a proper evidential basis for advancing it, the allegation should be withdrawn clearly and in terms, if a party no longer advances such an allegation. The report also notes that i am now taking the time necessary to consider both the substantive and the costs judgment and whether to pursue appeals against decisions in either judgment or both,” he added. The report also notes that in a joint statement following the judge’s ruling last month, Prince Harry and Baroness Lawrence, who became a public figure after her son Stephen was murdered in 1993, said: “We came to court seeking justice and accountability. The report also notes that normally these are agreed and capped ahead of trial. The report also notes that aNL had asked for more than £9.9m as an interim payment ahead of future hearings to decide its legal costs in depth.
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