Media Law Newsletter
     
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£75,000 fine for Sunday Mirror article that halted the Leeds United footballer trial.
Attorney-General v MGN Ltd (18 April 2002, Divisional Court)

Ban on Farrakhan stands. 
R v Secretary of State for the Home Dept, ex p Louis Farrakhan (30 April 2002, Court of Appeal)

Prime Minister turns to PCC not libel courts in political spat.
Tony Blair v The Spectator, The Evening Standard and The Mail on Sunday, 23 April 2002: Press Complaints Commission

Daily Mirror appeals in Naomi Campbell case.
Naomi Campbell v MGN Ltd

Last chance for spy writer to reveal assets and personal finances or risk jail.
Rupert Allason and Westintel Research Ltd v Random House UK Ltd (19 April 2002, Neuberger J)

Gagging for the Lord Chancellor.
Law Commission on Defamation

Liability of local councils in libel.
Law Commission Paper 163

Defence struck out after meaning determination.
Martine McCutcheon v Can International, Claire Powell and Alexis Grower (17 April 2002, HHJ Previte QC)

Son of Libyan leader not involved in currency scam.
Saif Al-Islam Gaddafi v Telegraph Group Ltd (18 April 2002, Popplewell J)

Alleged Robbie Williams stalker awarded damages.
Valentina Semenenko v MGN Ltd (16 April 2002, Eady J)

Attorney-General v MGN Ltd (18 April 2002, Divisional Court)

The Sunday Mirror was fined £75,000 for contempt of court following publication of an article that led to last year's collapse of the ten week trial of Leeds United footballers Lee Bowyer and Jonathan Woodgate. They were accused of attacking an Asian student, Sarfraz Najeib, outside a Leeds nightclub. At last autumn's Hull Crown Court retrial, Woodgate was found guilty of affray and Bowyer was acquitted on all charges.

The proceedings before Kennedy LJ and Rafferty J were only concerned with penalty since the newspaper accepted it was guilty under s 2(2) of the Contempt of Court Act 1981. Under this 'rule' of media contempt, no intention is necessary for the offence; the complainant only needs to prove that there was publication of matter which in fact tended to create a substantial risk that the proceedings would be seriously impeded or prejudiced.

The Sunday Mirror had published an inside double page spread on 8 April 2001 by reporter Andy Gardner consisting of an interview with Sarfraz's father Muhammad Narjeib. The father described his own experiences of being attacked by skinheads and regretted exposing his son to racist violence by staying in Britain.

The Attorney-General argued that the Sunday Mirror's article was seriously prejudicial since the jury, which had retired for the weekend, was still deliberating its verdict. Furthermore, the newspaper's emotive interview with the victim's father raised the issue that his son's attackers must have had a racial motive; a factor which Mr Justice Poole had specifically ruled out at the start of the trial.

The Attorney-General accepted that there was no deliberate attempt to interfere with the course of justice but the offence was aggravated because publication flew in the face of the judge's order on the race issue, was at a critical time and caused distress to witnesses facing a retrial. Also, the wasted costs of the trial exceeded £1m and the newspaper failed to explain how or why it came to break assurances to Sarfraz's father not to publish the article until after the trial.

MGN repeated its unreserved apology for the distress and inconvenience caused, admitted 'an appalling breach of trust' in its dealings with Muhammad Narjeib and accepted 'corporate responsibility' for the publication of the article. The newspaper accepted that the legal advice from its rota lawyers was wrong and that it was wrong to have run the story even though it was not a front cover lead and there was no commercial advantage in its publication.

MGN pointed to its previous good record, with no adverse finding in contempt against any Mirror title for over 50 years; to its now strengthened procedures for checking stories and to a category of offences more serious than this publication (see Comment below).

The court determined that in bringing a long criminal trial to a premature end there was a substantial interference with the course of justice. The context of the offending was that prior to the trial there had been widespread and intense publicity including references to a racial motive but the judge in his opening had stressed that this was not a factor in the trial and therefore no newspaper could be unaware of his directions on the matter. The article was a lavishly illustrated piece, counter to the court's directions and at the top end of strict liability cases. The risk to justice was more than remote.

The court criticised the internal lapses that led to publication and its traumatic impact on all concerned as well as the publisher's failure to explain what happened; culpability went wider than wrong legal advice. However, the court took full account of MGN's admission of liability, its good past record, the pre-publication precautions it routinely took and its speedy and repeated apology.

In setting the penalty it imposed a fine below those paid by newspapers in the past for more serious intentional offences. It accepted that deterrence was not a significant factor for MGN; the prospect of the proceedings was itself of considerable deterrence and matters could have been worse, there was a retrial rather than a permanent stay. Furthermore, although they were relevant, any penalty was not related to the costs thrown away in the original trial. In this case, the gravity of the offence was such that costs were not a sufficient penalty and the fine of £75,000 was in addition to agreed costs of £54,000.

Comment
Although not the six figure sum predicted by many lawyers and commentators, this was, by any comparison with past cases, a very high fine for a plea of guilty. It more than doubles the highest figure to date.

The highest fine to date in a reported case where guilt was admitted, is £35,000 [£36,750 in today's terms] in Attorney-General v Associated Newspapers Ltd [1999] COD 190. The trial was aborted after The Sun published an article after the jury had returned a guilty verdict in the trial of the Docklands bombers and had retired to consider its verdicts on further counts. This was said to be an error but a serious contempt.


The heaviest fine yet in real terms of £75,000 [£115,000 uplifted for inflation] resulted from the specific intention to interfere with the administration of justice in Attorney-General v News Group Newspapers plc [1989] QB 110, where News Group itself had undertaken to fund a private prosecution. This was followed by the Sun, in Attorney-General v News International plc (5 July 1994, Lexis), for publishing a photograph of a man charged with murder shortly before an identification parade. The fine was £80,000 [£96,800] with an additional fine of £20,000 [£24,200] on the editor Kelvin McKenzie.

Seriously prejudicial contempts in Attorney-General v Associated Newspapers Ltd [1998] EMLR 711 and Attorney-General v Morgan [1998] EMLR 294 which occurred before trial but led in each case to a permanent stay, were said to be 'calculated ' and 'very serious' respectively. There the fines were £40,000 [£44,400] and £50,000 [£53,500]. In Attorney-General v TVS Television Ltd The Times, 7 July 1989, the trial was aborted following a publication with no other prejudicial publications complicating the position and the fine was £25,000 [£38,500].

The most closely analogous case is Attorney-General v Birmingham Post & Mail [1999] EMLR 39 when following a prejudicial article, a criminal trial was halted and started afresh in a new venue. The newspaper was fined £20,000 [£21,400] and it was said that the effect on the due administration of justice and discharge of the jury were aggravating features. The mitigating factors in that case included it being a first finding of contempt, a regional not a national newspaper and a mistaken publication brought about by a failure of communication. The court said that the mistake had been taken seriously and proper procedures established to guard against a recurrence.

Whilst MGN's fine was below the level of serious intentional contempts, and despite its clean record on contempt compared to other tabloids, the group still holds the record for the heaviest fine ever imposed. In 1949 the Daily Mirror labelled the 'acid bath murderer' George Hague, 'Vampire Killer' just as he was being committed for trial. The newspapers' editor was jailed for three months and the fine was £10,000 [£197,900 when uplifted for inflation].

Links

News Reports
Sunday Mirror fined £75,000 for contempt of court
Jessica Hodgson
April 19 2002

Sunday Mirror admits it was wrong
Jessica Hodgson
April 18 2002


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R v Secretary of State for the Home Dept, ex p Louis Farrakhan (Court of Appeal, 30 April 2002)

Louis Farrakhan remains excluded from Britain after the Court of Appeal headed by Master of the Rolls Lord Phillips allowed David Blunkett's appeal against the decision of Turner J in the High Court to allow Farrakhan to travel to the UK.

On the evidence before it, the court determined that the Home Secretary's reason for excluding Mr Farrakhan was 'the risk that his presence in the country might prove a catalyst for disorder.' and not, 'simply, or even predominately, in order to prevent him exercising the right of freedom of expression in this country…'

A key question for the court was whether Article 10 of the European Convention on Human Rights protecting Freedom of Expression was engaged. The court noted, 'as a remarkable fact that almost all the Articles of the Convention which permit, for specified purposes, restrictions on the freedoms that they guarantee, do not include in those purposes the exercise of the control of immigration. This strongly suggests…that its obligations would apply to the treatment of individuals who were within the territory of the Member State concerned.'

However, since the Convention is a living instrument, the court, in accordance with s 2 of the Human Rights Act 1998, had to have regard to the Strasbourg jurisprudence when considering whether Art 10 imposes obligations in relation to an alien who is seeking permission to enter a Member State. For the purposes of this case the Home Secretary was prepared to accept that the fact that an individual was neither a citizen of a Member State nor within the territory of a Member State did not, of itself preclude the application of the Convention. The Court of Appeal therefore proceeded on the basis of that concession without examining whether or not it was correctly made.

The court reviewed the small number of decisions involving Art 10 and aliens (Agee v UK (1976) 7 D & R 164, Piermont v France (1995) 20 EHRR 301, Swami Omkarananda and the Divine Light Zentrum v Switzerland (1997) 25 D & R 105 and Adams and Benn v UK (1997) 88A D & R 137 and concluded that where:

  • entry is refused or an alien expelled for reasons not concerning the exercise of Convention rights, the fact that those rights cannot be exercised in the territory from which he is excluded does not violate the Convention
  • a State refuses entry or expels an alien solely to prevent the exercise of a Convention right within its territory, or as a sanction for exercising a Convention right, the Convention will be directly engaged
  • an alien is refused entry solely to prevent his expressing opinions within its territory, Article 10 will be engaged. The provisions of Article 10.2 will then determine whether or not the interference with the alien's freedom of expression is justified.
The court found that the Home Secretary excluded Farrakhan not '…because he held views that would be offensive to many. He excluded him because of the effect that he considered that his admission would have on community relations and the risk that meetings attended by him would be the occasion for disorder.'

Mr Farrakhan's notorious opinions, including racially divisive views, were a significant factor in the decision and the Home Secretary made reference to the disturbance outside the Stephen Lawrence Inquiry involving Farrakhan's supporters. The actions and arrest of members of the Nation of Islam during that incident gave rise to serious concern that a visit by Farrakhan would pose a serious threat and that his presence 'would not be conducive to the public good for reasons of race relations and the maintenance of public order.'

In evaluating the risk the Home Secretary had had regard to tensions in the Middle East current at the time of his decision but despite engaging in widespread consultation and a very detailed consideration, he had chosen not to describe his sources of information nor what was said. Although the Home Secretary may have had good reason for not disclosing his sources, the court felt that it would have been better had he been less diffident about explaining the nature of the information and advice he had received.

In his judgment for the court Lord Phillips MR said the merits of the appeal were finely balanced but that the Home Secretary had 'provided sufficient explanation for a decision that turned on his personal, informed assessment of risk to demonstrate that his decision did not involve a disproportionate interference with the freedom of expression.'

The Court of Appeal accepted that for a number of reasons the Home Secretary should be accorded a wide margin of appreciation in making his decision. Firstly, because Strasbourg attaches considerable weight to the right under international law of a State to control immigration into its territory but also because this is a personal decision of the Home Secretary who is better placed to make an informed decision than a court and is democratically accountable.

In conducting his 'rigorous review' as to whether there were reasonable grounds to suppose that admitting Mr Farrakhan to this country would involve a significant risk of civil disorder, Turner J had replaced his own evaluation of the relevant facts for that of the Minister.

Comment
It might be argued that in reality the threat to "public disorder" posed by Mr Farrakhan is no more than minimal. As was pointed out in the court below, this ruling is a restriction on the freedom of expression of both Mr Farrakhan and UK residents who wish to interact with him. It can only be a justified restriction if the Home Secretary is privy to undisclosed information about Mr Farrakhan and/or the proposed visit which suggests that there is indeed a real threat.

In legal terms the decision confirms that post Human Rights Act 1998, judicial review cases that impinge on human rights will no longer apply the 'Wednesbury unreasonableness' test, but rather the Convention test of 'proportionality'. Nevertheless, the Home Secretary will still be given a discretion or "margin of appreciation" for such decisions. This is another example of the judicial approach to freedom of expression varying depending on the subject matter. Restrictions will be more likely to be permitted where justified on the grounds of national security or pubic order. Contrast to cases involving political speech where the court is less likely to restrict freedom of expression (e.g. the Prolife and Rusbridger cases reported last month).

Links
Judgment

News Reports
Farrakhan ban a victory for Blunkett
Clare Dyer, legal correspondent
May 01 2002

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Tony Blair v The Spectator, The Evening Standard and The Mail on Sunday, 23 April 2002: Press Complaints Commission

The Prime Minister has lodged a complaint about the accusation that he tried to exploit the death of the Queen Mother to enhance his own role during the lying in state. All three publications refuse to retract their claims that the PM had sought greater prominence for himself when the Queen Mother's coffin arrived at Westminster Hall. Downing Street has denied the allegations.

Comment

The strategy adopted by the Prime Minister has its own very high risks. To take issue with the reporting of his own actions is in stark contrast to his previous complaints which sought to protect his family, and particularly his children, from unwarranted press attention. Safeguarding personal privacy is one thing but this latest complaint opens up the possibility that when future allegations go unchallenged, they will be taken as true. Taking it on the chin this time around may afford better long term protection.

Links
News Reports
Blair goes ahead with press complaint
Michael White, political editor
April 24 2002

Comment
Trial and error
JDan Tench
April 29 2002

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Naomi Campbell v MGN Ltd 

MGN has launched a comprehensive and potentially far reaching appeal against the decision to award supermodel Naomi Campbell £3,500 in damages in her claim against the Daily Mirror. The appeal is set to raise important questions in relation to the law of confidentiality and the Data Protection Act 1998.

In essence, MGN says the judge got everything wrong. He failed to adequately analyse either the facts or the applicable legal principles of Campbell's claim in breach of confidence and concluded wrongly that the information disclosed was confidential to Campbell. The newspaper also contends that the judge adopted mistaken criteria in determining the newspaper's public interest defence and on Campbell's Data Protection claim he misunderstood the 1998 Act and failed to address himself to the fundamental principles of statutory construction. In particular, the paper claims that Morland J's decision leaves publishers and journalists vulnerable since it throws doubt over the public interest elements of the Data Protection Act.

MGN also say that the court granted an inappropriate injunction, awarded aggravated damages that were wrong in law and made an order for costs which failed to reflect that Campbell had failed on a number of issues, recovered only derisory damages and had been guilty of lying to the court.

Comment
Most decisions in the developing area of the law of confidence/privacy have been taken on the back of interim injunctions. The Campbell case is one of the few to have come to trial and the Court of Appeal will be asked to establish some clear principles applicable to the granting of final relief. The key issues are likely to be, the threshold for determining what kind of personal information qualifies as confidential; the extent of the public interest defence following the coming into force of the Human Rights Act 1998 and whether a third party must be shown to be dishonest before attracting liability for receiving and using confidential information. On a more mundane level, there must be good grounds for questioning whether it was appropriate to award Campbell 100% of her costs. 

Links
Full Judgment

News Reports
Mirror wins right to Campbell appeal
Jessica Hodgson
May 02 2002

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Rupert Allason and Westintel Research Ltd v Random House UK Ltd (19 April 2002, Neuberger J)

Publisher Random House sought to commit spy writer Allason to prison for contempt for his failure to comply with an order of Lloyd J to disclose his assets and the true state of his personal finances. He was given 18 days to come clean or risk being sent to jail for a significant time.

The former Tory MP has failed to pay £200,000 in costs and compensation after losing his copyright claim last year to authorship of The Enigma Spy, the posthumous autobiography of the 'fifth' man in the Cambridge spy ring, John Cairncross. The trial judge, Laddie J, described Allason at the time as one of the most dishonest witnesses he had ever come across, 'I have come to the clearest possible conclusion that Mr Allason has told me untruth after untruth in pursuit of his claim'.

Mr Justice Neuberger has demanded that Mr Allason now gives a full account of his family trusts, the share ownership and value of his two companies, Westintel Research and Westintel Ltd and his income from books written under his pseudonym Nigel West.

Links
News Reports
Judge warns Allason he faces jail for contempt
Richard Norton-Taylor
April 20 2002

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Law Commission on Defamation

The Law Commission is conducting a feasibility or 'scoping' study for the Lord Chancellor's Department to identify problems allegedly faced by defamation defendants such as booksellers and distributors who have complained that they face gagging writs, gagging letters and tactical targeting by claimants. Their concern is that they are not always in the best position to defend themselves since they are not in a position to judge the truth of any particular work and the strength of a justification defence. Representations were made by the Booksellers Association that its members often face the option of either caving in or defending an action on an unknown basis.

The extended consultation period for the study has now ended and the Commission is in the process of writing up the results. They will make recommendations to the Lord Chancellor and the report will be published on the Law Commission's website. The Law Commission has also begun preliminary work on internet publications and is looking at the issues of forum shopping, liability for online publications and archives and contempt. It intends to instigate a small round of consultations and hopes to report later in the year.

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Law Commission Paper 163

Released on 23 April 2002, this consultative paper examines the legal problems faced by local authorities in publishing internal inquiry reports where there is a fear of defamation actions or admissions of liability arising from the revelation of evidence. The Law Commission took up the issue after concerns expressed in 'Lost in Care', the report arising from the public inquiry into abuse of children in North Wales chaired by Sir Ronald Waterhouse. The Waterhouse Report suggested that in some circumstances local authorities may be unduly constrained by threat of legal action or loss of insurance cover from making public, acting on, and identifying necessary reforms in the light of the results of inquiries conducted by them, or on their behalf.

The Law Commission's paper proposes a change in the law of defamation so that matters of serious public concern can be addressed openly even if it means that unpalatable information is made more widely available. The closing date for comments is 31 July 2002 and the contact for further information is Christina Hughes Law Commission 37-38 John Street Theobalds Road London WC1N 2BQ 020 7453 1225.

In Lillie and Reed v Newcastle City Council currently being tried by Eady J, the local authority appointed a team of investigators to conduct an examination into alleged child abuse. The ensuing report has resulted in a libel action by two former nursery school teachers against their former local authority employer.

Links
www.lawcom.gov.uk

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Martine McCutcheon v Can International, Claire Powell and Alexis Grower (17 April 2002, HHJ Previte)

Singer and former EastEnders actress Martine successfully struck out aspects of the defendants' justification defence in an application before HHJ Previte QC. Ms McCutcheon contended that the defamatory article, published in The Mirror could only be sensible read to mean that she had tried to avoid paying money owed to her former managers by dishonestly claiming that it was they who owed her money. The defendants argued that the article could be justified either by proving that Ms McCutcheon knew that her assertion was untrue 'or was probably' untrue. The judge decided the article was not capable of bearing the defendants' lesser meaning.

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Saif Al-Islam Gaddafi v Telegraph Group Ltd (18 April 2002, Popplewell J)

With a libel jury sworn in and three days into the trial, the Sunday Telegraph offered its 'sincere apologies' to the Libyan leader's son for an article that falsely alleged that he was involved in a large scale international currency scam. The paper also agreed to pay a 'substantial' contribution to the claimant's costs. The newspaper's journalists were spared being cross examined on their sources, said to be 'black propaganda' by western government security agencies.

Comment
Neither party emerged from this case with much to show for it. Although, Gaddafi obtained an apology for the false currency scam allegation, his brief period in the witness box did little to enhance his reputation. The "substantial" payment of costs was reported to be just over £100,000. However, the total costs incurred by Gaddafi were estimated at over £1 million, which must make it one of the most costly apologies for a claimant.

Links
News Reports
Gadafy 'sting' untrue, paper admits
Richard Norton-Taylor
April 19 2002

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Valentina Semenenko v MGN Ltd (16 April 2002, Eady J)

The Sunday People alleged that the claimant was obsessed with pop star Robbie Williams and stalked him. The article also alleged that Williams was frightened and called the police. In a statement in open court the newspaper accepted the allegations were untrue and that Williams had not been scared but only contacted the police to stop the claimant communicating with him. MGN gave an undertaking not to repeat the allegations and paid the claimant damages.

Links
News Reports
People pays out in 'stalker' case
Jessica Hodgson
April 16 2002

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 © David Price Solicitors & Advocates 2002