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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Boris Johnson is right about Saudi Arabia - but will he stick to his tune in Riyadh?

The Foreign Secretary went off script, but on truth. 

The difference a day makes. On Wednesday Theresa May was happily rubbing shoulders with Saudi Royalty at the Gulf Co-operation Council summit and talking about how important she thinks the relationship is.

Then on Thursday, the Guardian rained on her parade by publishing a transcript of her Foreign Secretary, Boris Johnson, describing the regime as a "puppeteer" for "proxy wars" while speaking at an international conference last week.

We will likely never know how she reacted when she first heard the news, but she’s unlikely to have been happy. It was definitely off-script for a UK foreign secretary. Until Johnson’s accidental outburst, the UK-Saudi relationship had been one characterised by mutual backslapping, glamorous photo-ops, major arms contracts and an unlimited well of political support.

Needless to say, the Prime Minister put him in his place as soon as possible. Within a few hours it was made clear that his words “are not the government’s views on Saudi and its role in the region". In an unequivocal statement, Downing Street stressed that Saudi is “a vital partner for the UK” and reaffirmed its support for the Saudi-led air strikes taking place in Yemen.

For over 18 months now, UK fighter jets and UK bombs have been central to the Saudi-led destruction of the poorest country in the region. Schools, hospitals and homes have been destroyed in a bombing campaign that has created a humanitarian catastrophe.

Despite the mounting death toll, the arms exports have continued unabated. Whitehall has licensed over £3.3bn worth of weapons since the intervention began last March. As I write this, the UK government is actively working with BAE Systems to secure the sale of a new generation of the same fighter jets that are being used in the bombing.

There’s nothing new about UK leaders getting close to Saudi Arabia. For decades now, governments of all political colours have worked hand-in-glove with the arms companies and Saudi authorities. Our leaders have continued to bend over backwards to support them, while turning a blind eye to the terrible human rights abuses being carried out every single day.

Over recent years we have seen Tony Blair intervening to stop an investigation into arms exports to Saudi and David Cameron flying out to Riyadh to meet with royalty. Last year saw the shocking but ultimately unsurprising revelation that UK civil servants had lobbied for Saudi Arabia to sit on the UN Human Rights Council, a move which would seem comically ironic if the consequences weren’t so serious.

The impact of the relationship hasn’t just been to boost and legitimise the Saudi dictatorship - it has also debased UK policy in the region. The end result is a hypocritical situation in which the government is rightly calling on Russian forces to stop bombing civilian areas in Aleppo, while at the same time arming and supporting Saudi Arabia while it unleashes devastation on Yemen.

It would be nice to think that Johnson’s unwitting intervention could be the start of a new stage in UK-Saudi relations; one in which the UK stops supporting dictatorships and calls them out on their appalling human rights records. Unfortunately it’s highly unlikely. Last Sunday, mere days after his now notorious speech, Johnson appeared on the Andrew Marr show and, as usual, stressed his support for his Saudi allies.

The question for Johnson is which of these seemingly diametrically opposed views does he really hold? Does he believe Saudi Arabia is a puppeteer that fights proxy wars and distorts Islam, or does he see it as one of the UK’s closest allies?

By coincidence Johnson is due to visit Riyadh this weekend. Will he be the first Foreign Secretary in decades to hold the Saudi regime accountable for its abuses, or will he cozy up to his hosts and say it was all one big misunderstanding?

If he is serious about peace and about the UK holding a positive influence on the world stage then he must stand by his words and use his power to stop the arms sales and hold the UK’s "puppeteer" ally to the same standard as other aggressors. Unfortunately, if history is anything to go by, then we shouldn’t hold our breath.

Andrew Smith is a spokesman for Campaign Against Arms Trade (CAAT). You can follow CAAT at @CAATuk.