Should councils be using public money for libel action?

This article was originally published on the Guardian Local Government Network

In early February, Carmarthenshire county council confirmed that its chief executive Mark James will sue local blogger Jacqui Thompson for libel. The decision was made by the council’s executive board, and indemnifies James from the costs associated with the legal action.

The same local authority that is switching off 5,000 street lights as a result of cuts to its central government grant is pursuing a libel action that is likely to cost a six, maybe even seven, figure sum. The case is symptomatic of a wider trend where local authorities are becoming increasingly intolerant of local bloggers and using their legal, press and even security teams to hit out at vocal critics.

The Carmarthenshire dispute is long-running. It began with a libel action between Kerry and Jacqui Thompson from Llanwrda and the local authority’s director of planning Eifion Bowen, after the couple were sued for circulating defamatory letters, though they were never published in the wider media. The Thompsons apologised to Bowen at a hearing in October 2007, when they were given 12 months to pay legal costs totalling £7,000.

In 2008, the county council controversially changed its constitution so that public money could be used in future libel actions; an FOI request revealed its total legal costs from external organisations (solicitors and counsel) shot up from £364,369 to £711,832.

The legal authority for using public money for libel actions is questionable. The Derbyshire county council v Times Newspapers Ltd judgment of 1993 specifically rules out local authorities from suing for libel. As Lord Keith said in the judgment: “It is of the highest public importance that a democratically elected governmental body, or indeed any governmental body, should be open to uninhibited public criticism”.

This ruling was derived in part from earlier case law, which asserts the fundamental importance in a democracy of citizens being able to express their views — even offensive or distressing views — about their government, at national or local level.

While elected members and officers can use local authority funds to defend themselves if sued for libel in the course of their duties under the 2004 Local Authorities (Indemnities for Members and Officers) parliamentary order, it specifically does not allow members to bring actions as claimants. And though Derbyshire specifically rules out local authorities and elected members suing for libel, it is less clear on councils funding libel actions brought by individual officers.

Wesley O’Brien, a solicitor at Bevan Brittan, pointed out in Local Government Lawyer magazine that local authorities can fund a claim brought by an individual officer and assist them if it can justify this expenditure. He said: “As the law currently stands, a local authority can fund a claim brought by an individual officer [council staff member] and it can also assist an officer in defending such a claim, where it considers such public expenditure to be justified.

“The position is, however, different for members where a local authority is only entitled to fund a defence, but not a claim … the only condition is that the statements made must refer to and be defamatory of the individual concerned.”

This isn’t the only case where taxpayer-funded local authorities are using their resources to take on vocal critics.

South Tyneside council, while making £35m worth of cuts in its 2010-11 budget, has admitted to Index on Censorship that it has used in excess of £75,000 worth of public money to launch a legal action by the council’s leader Iain Malcolm, fellow Labour councillor Ann Walsh and independent David Potts, alongside borough regeneration boss Rick O’Farrell.

Originally, South Tyneside told us that total case costs would not rise about £75,000, but the council has since admitted costs have rocketed into six figures. “The legal costs of this case have passed the £75,000 as a result of additional costs incurred to defend an ‘anti-Slapp’ motion … our American lawyers have advised that these costs total $64,370 and they have submitted a claim for this amount to the court in California. We are advised that the claim will be considered by the court at a hearing in February 2012,” it explained.

South Tyneside’s constitution requires cabinet sign-off for items over £75,000 – which of course creates a direct conflict of interest as Malcolm is a claimant in the case. However, the press office declares cabinet sign-off is not required.

As the case is being pursued in the Californian courts, it seems that the Derbyshire principle does not apply. But the council would find it hard to argue in the English courts that funding a case brought by an elected member did not breach either the Derbyshire principle, or the 2004 parliamentary order, leading to serious questions as to why the legal action has been taken.

These troubling recent cases, demonstrate the need to include a prohibition on all public bodies from suing for libel, as recommended by the Libel Reform Campaign, a coalition of Index on Censorship withEnglish Pen and Sense About Science. The government is currently considering including the draft defamation bill in the next Queen’s speech, with thousands across the country writing to MPs to urge them to do so. If it does, ensuring that the resources of public bodies cannot be brought to bear against vocal opposition should be a serious priority.

Local authorities that open up access to information and learn from their critics will in the long-run build trust with their citizens. Councils that use public money to silence local voters are on a hiding to nothing — thanks to the Freedom of Information Act, we know what they’re spending, and how their decisions are being made. The old control impulse is strong, but it’s hard to justify to taxpayers in South Tyneside that their money is being thrown at lawyers in a Californian court so one councillor can sue another.

Index on Censorship chief testifies at Leveson Inquiry

Index on Censorship and English PEN championed the cause of libel reform at the Leveson Inquiry this morning.

Index CEO John Kampfner and English PEN director Jonathan Heawood stressed that access to justice needed to be improved, arguing that the costs of bringing libel claims forward are “enormous, frightening and chilling”.

Kampfner said it was also “extremely difficult for media faced with a wall of laws and other restrictions to find out otherwise legitimate information.”

The pair advocated Alternative Dispute Resolution (ADR) to provide fairer access to justice through offering a fast and inexpensive mediation service. Preliminary research last year showed that 96 per cent of defamation cases could be successfully mediated.

Lord Justice Leveson questioned whether or not wealthier parites would choose to take a claimant to court rather than opt for mediation. Heawood admitted he had “wrestled with” this problem.

Kampfner stressed it would be a “tragedy” if the Inquiry’s ongoing work inadvertently delayed the insertion of libel into the Queen’s speech in May. Lord Justice Leveson replied that libel reform was not directly in his remit, but said he would like to offer a “considered response”.

The pair were also quizzed by counsel Robert Jay and Leveson about the balance of 8 (right to privacy) and Article 10 (freedom of speech). Heawood stressed it was not the case that one was more important than the other, but rather that they are “complementary”.

On privacy, Heawood argued that there was a difference between a harmful publication in a newspaper and “real intrusion.” He cited JK Rowling’s testimony of a slipping a note into her daughter’s schoolbag as “tresspass”.

Kampfner, former editor of the New Statesman, lamented the “weaknesses” in the British media. Recounting his time as a lobby reporter, he described a “culture of services rendered” in political journalism. “Westminster is all about spin doctors feeding journalists on daily basis,” he said, adding that the so-called feral beats of the media were often “locked up”.

But Kampfner warned emphatically against a statutory element of regulation, arguing that it was unnecessary in a “robust environment”. He added that Parliament’s record in navigating the course towards better transparency and accountability was “very poor indeed”.

Citing Hungary’s “seemingly innocuous” co-regulation model, which gives the country’s Media Council the power to impose fines, Kampfner said: “be careful what you wish for.”

Heawood was largely in agreement, arguing that co-regulation was often wrongly seen as a “holy grail” or a “magical third way between statutory and self-regulation.”

Kampfner urged for improved corporate governance and editorial management. “The ‘I was in Tuscany’ excuse from editors is no excuse,” he said. “The buck stops with editors.” He suggested organisations’ quarterly board meetings having an agenda item on standards,  and an improved regulator should have a standards arm.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson

Index on Censorship Submission to the Leveson Inquiry January 2012

Leveson must not delay reform of our dreadful libel laws

This article was originally published in The Times

Sometimes the most reasonable-looking laws can cause the most damage. Let’s hope members of the Leveson inquiry into media ethics are familiar with this awkward fact. In France, stringent privacy laws have prevented investigation into the dodgy financial dealings of leading public figures. In Hungary, a media law has in a matter of months emasculated a free press, leading to radio stations being closed down and reporters and editors fired. That law includes many items on the wish lists of several witnesses to the inquiry, such as press regulation, licensing and fines.
In the UK journalists pride themselves on the irreverence and bolshiness of their newspapers. Yet despite the outrageous behaviour that led to the phone-hacking scandal, the real problem with Britain’s press is that it is too weak. It finds out far too little. If the job of journalism is to put into the public domain inconvenient truths that the rich and powerful would like to hide, then the performance of Britain’s press is nothing to be proud of. Part of this is economic (investigations are costly); laziness is another factor.
By far the biggest reason, however, is the number of laws that impede proper scrutiny. The most pernicious area is our defamation culture. Index on Censorship, together with its partners, has been leading the campaign to reform England’s libel laws. A defamation Bill has been drafted and should be included in the Queen’s Speech in May, as ministers have promised. Libel reform was, after all, part of the coalition agreement.
London has for years been a rich men’s playground, with oligarchs, oil barons and autocrats using our plaintiff-friendly courts to bully bloggers, newspapers and civil society groups. It was bad enough when the creators of South Park satirised our legal system (with Tom Cruise threatening: “I’m going to sue you — in England!”), but when President Obama signed into law the Speech Act, designed to protect Americans from English libel rulings, we went from farce to tragedy. MP’s rightly described that action as a “national humiliation” for the UK.
Until recently, libel reform appeared on course; broad consensus has been achieved on the main points of a final Bill. Yet some are now calling for delay, for defamation to be thrown into the post-Leveson soup. This would be folly. As he proceeds in his vital task of improving the standards of British journalism, Lord Justice Leveson should make clear that his inquiry will not be used as a device to delay implementation of a law that goes to the heart of democracy and the public’s right to know.

John Kampfner is chief executive of Index on Censorship

Hislop: "If the state regulates the press, then the press no longer regulates the state"

Private Eye editor Ian Hislop has spoken out against further press regulation, arguing that “if the state regulates the press then the press no longer regulates the state”.

Hislop told the Leveson Inquiry that the British press faces substantial regulation, adding that the worst excesses of the press occurred due to poor enforcement. He highlighted that many of the “heinous crimes” addressed by the Inquiry, namely phone hacking and contempt of court, are already illegal.

“I believe in a free press and I don’t think it should be regulated, but it should abide by law,” he said.

Hislop also lamented the “deeply embedded” involvment among senior politicians and News International, and urged Lord Justice Leveson to call the Prime Minister, Tony Blair and Gordon Brown to give evidence.

During his evidence, which at times resembled a debate than testimony, he alluded to France’s stringent privacy law, which he labelled “draconian”. The French “are catching up with two decades of news because of the reluctance to look at private lives of people who ran them”, he said.

Hislop also spoke out against prior notification, detailing how, when stopped from running a story about Law Society president Michael Napier, his magazine spent £350,000 while the application for an injunction went through. “The lesson I learned was not to give prior notification,” he said, adding later that privacy had become “more of a problem than libel” in the UK.

Yet he called libel arbitration a “waste of time”, noting he would “rather end up in the courts because that’s where you end up anyway.” He told the Inquiry that, since 2000, his magazine has faced 40 libel actions.

Also speaking this morning was News International CEO Tom Mockridge, who took over from former chief Rebekah Brooks in the wake of the phone hacking scandal last summer. Mockridge upheld the British press for “its extent of competition, choice and ability to report with freedom”, noting that many outside the country look at the press with “jealousy”.

Following a discussion of the regulatory models of Italy and Hong Kong, Mockridge disagreed with Lord Justice Leveson’s distinction between state regulation and a mechanism of statutory backing in a self-regulatory body. “If the state intervenes, the state intervenes,” he said, noting that it would “diminish a free press”.

Follow Index on Censorship’s coverage of the Leveson Inquiry on Twitter – @IndexLeveson