What was the Dispute between Prince Harry and NGN About?

Prince Harry recently achieved a significant legal victory against News Group Newspapers (NGN), the publisher of The Sun. The case centred on historic allegations of unlawful information gathering, including phone hacking and other intrusion into his private life by journalists and private investigators working for the Sun. NGN issued a “full and unequivocal apology” and have agreed to pay substantial damages.  This may not be the end of the legal dispute saga however, as questions remain as to what elements of the case have settled, whether Prince Harry’s legal costs remain outstanding to be agreed separately from the substantive damages claim.

Whilst the exact amount remains undisclosed, sources familiar with the deal stated that the settlement was estimated around £10 million. This settlement marked the conclusion of a case that could have resulted in a lengthy and costly trial​.  Given the size of the sum agreed, and considering historic damages payouts for press intrusion type cases, it is likely that this settlement includes Prince Harry’s legal costs also.

The Duke of Sussex pursued this case to expose alleged systemic incidents of unlawful activity and cover-ups by the Sun between 1996 to 2011. While the settlement resolved the case without NGN admitting illegality in all aspects, Harry’s legal team has called for further investigations into deleted evidence and possible obstruction of justice​.

This legal action is part of Harry’s broader effort to challenge unethical press practices. He has previously brought claims against other media organisations, including his successful lawsuit against Mirror Group Newspapers last year for similar violations.

Buckingham Palace and Prince William’s office declined to comment. Prince William, Harry’s older brother, reportedly reached a private settlement with NGN in 2020 for what Harry’s legal team described as a “very large sum.”

News Group Newspapers (NGN) has paid out hundreds of millions of pounds to victims of phone hacking and other forms of unlawful information gathering carried out by the News of the World. The publisher has settled over 1,300 lawsuits involving celebrities, politicians, prominent sports figures, and individuals connected to major events. According to Prince Harry and his legal team, these settlements and legal actions have cost NGN more than £1 billion. 

Prince Harry has previously stated he wanted the Trial to proceed irrespective of settlement offers made by the Defendant however, it should be borne in mind that had such an attractive offer been made by NGN which surpassed any likely award by the Court had they found in favour of Prince Harry, he and his co-Claimant may have become liable for the costs of the Defendant for the Trial.  Any such adverse costs order would have significantly eroded his recovery of damages and costs, and as his Solicitors were funded by way of a Conditional Fee Agreement, he may also have become responsible for his own Solicitor’s and barrister’s costs for Trial (and would not have recovered them from the other side) had he proceeded against their advice.

What Happens next in the Prince Harry Legal Costs Case?

Whilst a settlement has been agreed for this case, it has not been definitively confirmed at this time what that settlement incorporates (whether this includes costs or if it is just damages). If the agreement of circa. £10 million is for just damages, this would be a sizeable upwards departure from previous damages awards agreed with previous Claimants, though the extent of hacking of more than a decade will likely have contributed to a sizeable damages award having been agreed.  If costs are yet to be agreed, then the detailed assessment process will need to proceed. This process involves scrutinising each individual charge to determine whether it is reasonable and in line with the court’s previous orders.

If it is to proceed, then the Claimant’s legal team prepares and submits a detailed Bill of Costs. This document itemises all expenses incurred during the case, including legal fees, expert witness costs, court fees, and administrative expenses​.

The opposing party, in this case, NGN, has the opportunity to review the costs bill once it has been served with a Notice of Commencement. Within Points of Dispute, the Paying Party can set out their challenges to specific items or argue that certain expenses are excessive, unreasonable or disproportionate​. Both sides typically enter a negotiation phase to reach an agreement on the amount.  The Receiving Party can respond to these submissions with their own Points of Reply. This step aims to avoid a protracted Court assessment, saving time and resources pursuant to the overriding objective.

If no agreement is reached, the case proceeds to be lodged for a detailed assessment Court hearing. A Costs Judge examines the bill, and on oral submissions by both sides (at an attended detailed assessment hearing, with Bills of less than £75,000 being dealt with on the papers at provisional assessment hearings), determinations are made by the assessing costs officer to apply any reductions to costs to ensure  that all costs claimed are reasonable and proportionate to the complexity and scope of the case​.

After considering evidence and arguments, the Costs Judge issues a ruling on the final amount of costs payable. This ruling is binding unless appealed.

Costs Implications Moving Forward

The Prince Harry legal costs case could serve as a landmark for future legal cost disputes and broader litigation involving media malpractice for various reasons. The settlement with substantial damages demonstrates the financial repercussions of media organisations engaging in unethical practices. It could encourage future claimants to pursue cases, confident that courts will impose significant penalties and often order defendants to cover claimants’ legal costs.

This case brings attention to how Court’s balance Claimant and Defendant costs. For example, the rulings can guide how legal costs are apportioned in complex cases, especially when settlements occur without admitting liability, and ascertaining the degree of success of any claim. These principles can influence how costs are calculated, managed, and contested in other cases​.

CPR Rule 44.3 emphasises that costs must be proportionate to the matters in dispute. Given the scale and complexity of Harry’s claims, the Court will likely consider proportionality factors in relation to the level of damages sought, complexity of the case given the swathes of evidence and witnesses involved, and also the broader public interest.

If detailed assessment proceedings are to take place, it will very much be akin to the process and complexity of the proceedings in the ongoing Wagatha Christie costs dispute, for which preliminary hearings have already taken place on initial broad costs issues raised, with the item-by-item detailed assessment still to take place in those proceedings at the time of writing.

How can ARC Costs Assist Your Law Firm?

ARC Costs specialise in the increasingly complex area of legal costs which follow the conclusion of a legal action. We are an experienced and independent team of specialised Costs Draftsmen and Costs Lawyers who can assist either paying or receiving parties in resolving costs disputes.

Our expertise is not limited to dealing with costs at the conclusion of a case, and we would strongly recommend involving a costs expert from the outset of any case to ensure your retainer and charging rates are all in order, and crucially you will need legal expertise on costs at the stages of preparing Costs Budgets mid-litigation, or on conclusion in preparing a Bill of Costs as a Receiving Party.  We also provide legal costs negotiations services and regularly prepare Points of Reply as part of conducting detailed assessment proceedings.

As we are independent, we can also act for Paying Parties,  for whom we are adept at preparing Points of Dispute, and ensuring that a proportionate level of costs is recovered, with any excess reduced from your costs liability. Proportionality is a subjective issue, and it is therefore important you have the right legal costs representative on your side during detailed assessment. This is to ensure you make the most persuasive submissions on the issue.  

If you would like more information on any of our services or wish to speak to a member of our costs team about your case, then please do not hesitate to contact us. Please call us at 01204 397302, or email one of our costs experts direct on info@arccosts.co.uk.

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