View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Media Law
October 9, 2008

No-win no-fee rules prompt rise in early libel settlements

By Paul McNally

The increasing use of no-win no-fee agreements in libel claims is forcing more news groups to settle before a verdict is reached, according to a new study.

The research, published today by legal information provider Sweet and Maxwell, found many publishers were reluctant to fight a defamation claim to the end, because of the costs associated with conditional fee agreements. Under CFAs lawyers acting for claimants claim their own fees plus up to 100 per cent extra from the publisher if they win.

The report found that of 61 per cent of reported libel cases in the UK between June 2007 and May this year resulted in a statement in open court – where the defendant acknowledges it made a mistake and settles early. This compares with 21 per cent – or 14 cases – in 2004/05.

Jaron Lewis, from City law firm Reynolds Porter Chamberlain, said CFAs – which provide access to justice on a no-win no-fee basis – had prompted publishers to think again before defending a lengthy, and costly, libel claim.

“The media is now much more used to interacting with its audience and dealing with complaints as they arise,” he said. “Also, media companies are now under more pressure than ever before to settle cases because of the potential costs of fighting a case through to trial.”

The research, based on the Sweet and Maxwell online archive of law reports and transcripts, found the total number of reported libel cases in the UK fell from 66 in 2004/05 to 59 last year.

But the number of celebrities suing British news groups for libel in the same period has almost doubled and now makes up a third of all claims, according to the report, which found 19 reported defamation cases involving celebrities in the year from June 2007 to May 2008 – up from 11 in 2004/05.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

“This increase reflects a strong appetite among consumers for celebrity stories,” the report said. “Competition to deliver this coverage can lead to factual errors being made which then prompt defamation claims.”

Sweet and Maxwell said that another possible explanation for the increase in settlements is the fact that it is more difficult to use the Reynolds public interest defence when dealing with celebrity stories as opposed to articles about political figures.

Topics in this article :

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network