A Reuters writer gets the law wrong on News of the World

A misleading item on a major news site.

Many people are rightly concerned at an alarmist blogpost at Reuters entitled "Is Murdoch free to destroy tabloid's records"?

In the post the Reuters writer attributes the following view to a named London lawyer:

Rupert Murdoch's soon-to-be shuttered tabloid may not be obliged to retain documents that could be relevant to civil and criminal claims against the newspaper -- even in cases that are already underway. That could mean that dozens of sports, media, and political celebrities who claim News of the World hacked into their telephone accounts won't be able to find out exactly what the tabloid knew and how it got the information.

If News of the World is to be liquidated, says the lawyer it "is a stroke of genius -- perhaps evil genius.

The Reuters writer adds:

Under British law, [the lawyer] explained, all of the assets of the shuttered newspaper, including its records, will be transferred to a professional liquidator (such as a global accounting firm). The liquidator's obligation is to maximize the estate's assets and minimize its liabilities. So the liquidator could be well within its discretion to decide News of the World would be best served by defaulting on pending claims rather than defending them. That way, the paper could simply destroy its documents to avoid the cost of warehousing them -- and to preclude any other time bombs contained in News of the World's records from exploding.

The lawyer is then quoted again:

Why would the liquidator want to keep [the records]? Minimizing liability is the liquidator's job. That's a very different scenario, [...] from what would happen if a newspaper in the U.S. went into bankruptcy. In the U.S., a plaintiff (or, for that matter, a criminal investigator) could obtain a court order barring that kind of document destruction. In the U.K., there's no requirement that the estate retain its records, nor any law granting plaintiffs [sic, claimants] a right to stop the liquidator from getting rid of them.

The Reuters blogpost is, however, misleading. It may well be that the lawyer quoted was misquoted, or that the context of his answers has been misrepresented. But the blogpost is, in my view, flatly wrong and it is to the severe discredit of Reuters that it is even hosted on its site.

To begin with, the blogpost asks in its title whether Murdoch would be free to destroy records. It then goes onto discuss whether the liquidator - a person independent from and not controlled by Murdoch - would have the power to destroy records. The title does not make sense in terms of what follows.

As I explained yesterday, the closure of the News of the World means merely that one branded product will no longer be offered to the market place. Indeed, that is all the official statement from James Murdoch actually says: the News of the World will not be published after Sunday. There is no mention of the appointment of any liquidators.

On the information available, the News of the World is not itself a corporation. For example, civil litigation involving the News of the World - including the CTB case - is in the name of News Group Newspapers Ltd. The terms and conditions of the News of the World website are also in the name of News Group Newspapers Ltd. News Group Newspapers Ltd also publishes the Sun.

A better legal view is that the civil and criminal cases are entirely unaffected by the closure of the News of the World, as I said yesterday. All the relevant evidence for criminal and civil cases should still be preserved.

The conduct of those at News of the World was bad enough without creating scare stories based on nothing other than wild supposition.

So to put it plainly: there is no suggestion, other than on this Reuters blogpost, that News Group Newspapers Ltd is about to be liquidated.

Indeed, such a statement can be defamatory of a corporation, and actionable if it is untrue. Ask any media lawyer.

 

David Allen Green is legal correspondent of the New Statesman

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.)

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Meet the ex-footballers launching a support network for victims of sexual abuse in the sport

The Offside Trust is set up after hundreds have come forward, and 55 football clubs have been linked to allegations of abuse.

In a sumptuous room inside a luxurious hotel in the centre of Manchester, the country’s media anxiously await the arrival of a man whose story has rocked English football to its very foundations.

Since Andy Woodward went public with allegations that he experienced sexual abuse as a young footballer in the 1980s, the nation’s favourite sport has been left in crisis and, in the process, forced to do some soul-searching.

Following Woodward’s story, a number of his peers have also come forward with tales of unimaginable suffering.

This week, some of those men have joined together to launch the Offside Trust, an independently-run body aiming to provide support to players and the families of those who have suffered sexual abuse in football and other sports.

According to Woodward and his colleagues, the Trust won’t just be a way to help those who have been abused while playing the sport they love, but also represents a direct response to institutions that, in their view, have failed to protect them.

“A number of people who have come forward have indicated that they don’t have trust in the establishment,” says Edward Smethurst from Prosperity Law LLP, a Manchester law firm in charge of administering the trust.

“We are not here to criticise any of the establishment bodies, but we do have to respect the sensibilities and the opinions of the victims.” 

Wearing a crisp blue suit, hair combed neatly into place, Woodward’s composed demeanour masks the tremendous emotional stress he has revealed to the world he had to endure for decades, in silence until now.

Hearing him retell his story time and again, it is evident that, although exhausting, this process of letting the world know the horrors he says he experienced as a boy is both cathartic and a way to help others.

“I’m totally overwhelmed, the emotions are just unreal,” he says. “I can’t believe how many [people] have come forward, but I just encourage more and more [people] to have that strength and have that belief to do it.”

Sitting beside Woodward is Steve Walters – a former football prodigy whose career was cut short due to a blood disorder – who says he fell prey to the same serial child molester as Woodard. The person in question can no longer be named for legal reasons.

Walters tells me how his story has affected every aspect of his life. “It has ruined marriages, the relationship with my children, flashbacks, lack of sleep, panic attacks,” he tells me.

Walters speaks of “injustices” done to him for the past 20 years by those in charge of the sport he once loved. But he also knows how he would like to start turning the page and move on with his life.

“An apology [from Crewe Football Club] would be a start,” he says. “For them to not even put out one small apology, it does hurt.”

Since Woodward’s allegations were first made public on 16 November, 18 police forces across the country are now investigating claims of historic sexual abuse in football.

Every player I speak to at the Offside Trust launch in Manchester describes this as an epidemic, and that, in modern Britain, some children are still at the mercy of paedophiles operating within the sport. 

“I do believe it’s happening,” says Jason Dunford, who also claims to have been abused at Crewe Alexandra. “I believe it’s happening on a lower scale than when we were children, but as a father of a young boy who is around the football industry at the moment, I still have worries.”

Woodward coming forward has had worldwide implications. Walters and Dunford tell me they have been contacted by players as far-flung as South America and Australia who say they have been through the same ordeal as young footballers. The men are adamant this is not a UK problem, but a football one – wherever the game is played.

Woodward is mentally drained. Prior to the interview, he repeatedly tells me how the whirlwind of the last few weeks has affected his health. But he knows that this is his chance, perhaps the only one he’ll get, to help those like him.

“The closure will be when I feel like I’m satisfied that I have done everything I can to help as many people out there as possible,” he says. “People with children in football need protecting.” 

Felipe Araujo is a freelance journalist based in London. He writes about race, culture and sports. He covered the Rio Olympics and Paralympics on the ground for the New Statesman. He tweets @felipethejourno.