Former Editor Must Pay His Own Legal Fees

The High Court has held that News Group Newspapers Limited is not liable to pay the legal fees incurred by its former editor, Andy Coulson, in defending criminal allegations against him.  This is despite the parties having entered into a compromise agreement which stated that News Group would pay any reasonable legal expenses incurred by Mr Coulson in ‘having to defend, or appear in, any administrative, regulatory, judicial or quasi-judicial proceedings as a result of his having been Editor of News of the World'.  

Mr Coulson was investigated by police regarding allegations of criminal behaviour in connection with the infamous News of the World ‘phone-hacking scandal' and sought a declaration that News Group would cover his legal fees in defending the allegations under the terms of his compromise agreement.  The High Court said that there was an assumption that Mr Coulson would be acting lawfully in his position as editor.  Therefore, although the clause in question might cover the normal, lawful occupational hazards associated with Mr Coulson's former position, it could not have been intended to cover his own personal wrongdoing.  Although this is an unusual set of circumstances, the High Court ruling is some comfort to employers using similar wording in their own compromise agreements.