Prince Harry, Sir Elton John and five other high-profile claimants could face a legal bill of up to $46 million after losing their privacy lawsuit against the publisher of the Daily Mail, London's High Court heard on Wednesday.
The group brought legal action against Associated Newspapers, alleging its titles had engaged in unlawful information-gathering practices, including phone hacking. Earlier this month, however, Judge Matthew Nicklin dismissed the claims in full, ruling that the claimants had failed to prove the information published about them had been obtained illegally.
Associated Newspapers hailed the judgment as a major victory for press freedom, while Prince Harry criticised the decision, describing it as a "complete and obvious whitewash".
During Wednesday's costs hearing, Associated Newspapers argued that the claimants should pay its legal fees on an indemnity basis, a higher standard that would make it more difficult for the losing side to challenge the amount claimed.
The publisher told the court it had incurred legal costs of $46 million, while the claimants' insurance policy covers only about $21 million, leaving a significant shortfall.
Associated is also seeking an interim payment of approximately $13.3 million while the final costs are determined.
Antony White, representing Associated Newspapers, accused the claimants of making sweeping allegations without sufficient evidence, arguing that this had significantly increased the publisher's legal costs. He also criticised Prince Harry's public statement following the judgment, calling it "entirely inappropriate and unreasonable".
Lawyers for the claimants rejected the publisher's request for indemnity costs, describing the $46 million bill as "eye-watering" and far above the court-approved litigation budget. They have instead offered an interim payment of about $10.6 million, to be made by 28 August.
The claimants' legal team also confirmed that any application to appeal Judge Nicklin's ruling has been postponed until after the court reaches a decision on legal costs.
The hearing is expected to continue on Thursday (30 July), when the court will hear further arguments before deciding how much of Associated Newspapers' legal expenses the claimants will ultimately have to pay.
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