Mulcaire and confidentiality

What impact will the withdraw of litigation funding have?

Since the revelations in the New York Times revived the phone hacking scandal back in September 2010, one of the most puzzling aspects has been the "settlement" agreement that News International had entered into with Glenn Mulcaire. In particular, as was pointed out at Jack of Kent, a conventional settlement agreement made no sense if Mulcaire was not actually an employee to begin with.

Since then, it has become clear that the agreement had two key terms in addition to any cash payment for Mulcaire to compromise all and any legal claims against News International, if he ever had any such claims at all.

First, there was an obligation of confidentiality on Mulcaire. This is standard in such agreements, though in this case it was clearly convenient to News International. A cynic may even suggest that was the whole point.

Second, there appears to have been an indemnity for the payment of Mulcaire's legal fees for defences to civil claims. This may have been tied into a further right of News International to conduct his defence. This would have been sensible from a strategic point of view, as it appears News International was facing a number of actions as co-defendant with Mulcaire.

However, after pressure at yesterday's select committee hearing, it has been announced that this funding of legal costs has been withdrawn. Apart from the direct financial detriment this will have on Mulcaire, it is not clear what impact this will have on either the confidentiality provision or any right of News International to conduct his defence on his behalf. If the agreement is sophisticated and well-drafted, it may be that the indemnity can be dropped without any effect on whether other obligations can be enforced.

In any case, it would now seem that Mulcaire has no direct interest in co-ordinating any defence to the civil claims with News International. He may well feel at least morally released from any obligation of confidentiality. The withdraw of funding his defence may have a significant impact on the course of the outstanding civil claims. In this way, as in many others, the events of this week mean that News International cannot carry on as before.

David Allen Green is legal correspondent of the New Statesman. He is the author of the Jack of Kent blog and can be followed on Twitter and on Facebook.

David Allen Green is legal correspondent of the New Statesman and author of the Jack of Kent blog.

His legal journalism has included popularising the Simon Singh libel case and discrediting the Julian Assange myths about his extradition case.  His uncovering of the Nightjack email hack by the Times was described as "masterly analysis" by Lord Justice Leveson.

David is also a solicitor and was successful in the "Twitterjoketrial" appeal at the High Court.

(Nothing on this blog constitutes legal advice.)

Getty
Show Hide image

Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496