A judge at London's High Court is scheduled to rule Friday on the legal costs Prince Harry and six other claimants must pay to the publisher of the Daily Mail following their unsuccessful privacy lawsuit. The decision will determine the size of an interim payment and whether the claimants are liable for costs on an "indemnity basis," which would require them to pay without the publisher proving the expenses were reasonable.
The ruling follows a July decision by Judge Matthew Nicklin, who rejected allegations brought by Prince Harry, singer Elton John, and five others against Associated Newspapers. The claimants had alleged that the publisher engaged in unlawful activities, including phone hacking. Judge Nicklin ruled that the claimants failed to prove the information was obtained through illegal means, stating that suspicion alone was insufficient to sustain the case.
During a costs hearing in July, the court was informed that Associated Newspapers had accumulated a legal bill of £34.5 million ($45.8 million). The publisher is currently seeking an interim payment of £10 million. Lawyers for the claimants, who hold an insurance policy covering £16 million in costs, have offered an interim payment of £8 million. The claimants have not yet announced whether they intend to appeal the primary ruling.
The claimants will notice the impact through direct payments or insurance claims, starting with the interim amount decided this Friday. The publisher has requested £10 million, while the claimants have offered £8 million—a difference of £2 million ($2.66 million) that will be resolved by the court's written judgment. A person in this position would see these funds diverted from personal or insured assets to cover the legal fees of the opposing party.
The case also sets a precedent regarding the standards of evidence required in privacy and phone-hacking litigation against British media outlets. Associated Newspapers characterized the dismissal as a victory for a free press, while the legal determination on "indemnity costs" will signal how the court views the conduct of claimants who bring serious allegations that are later rejected. Following this Friday’s written ruling, the parties must decide whether to pursue further appeals, while Prince Harry and his family are reportedly scheduled to relocate from California to Britain later this month.