Prince Harry and other claimants in the phone hacking case against News Group Newspapers (NGN) face a huge legal bill after it emerged that the publisher's insurance policy is insufficient to cover the costs. The shortfall could leave the claimants responsible for millions of pounds in legal fees, according to sources close to the case.
Insurance gap leaves claimants exposed
NGN, which owns The Sun and the now-defunct News of the World, had taken out insurance to cover potential legal costs from the ongoing phone hacking litigation. However, the policy has a limit that is far below the actual costs incurred, leaving a gap of more than £10 million. The insurer has refused to pay out beyond the policy limit, citing a clause that excludes coverage for intentional wrongdoing.
As a result, NGN is seeking to recover the shortfall from the claimants, including Prince Harry, who is one of the lead litigants. The legal bill could run into millions for each claimant, depending on the outcome of the case.
Prince Harry's legal battle
Prince Harry has been a vocal critic of the British press and has pursued legal action against NGN for years. He alleges that the company's newspapers hacked his phone and invaded his privacy. The case is part of a broader litigation that has seen hundreds of claimants seek damages from NGN over phone hacking and other unlawful information-gathering practices.
According to a spokesperson for the claimants, "This insurance shortfall is an attempt by NGN to bully and intimidate claimants into dropping their cases. We will fight this tooth and nail."
Impact on other claimants
The insurance gap affects not only Prince Harry but also other high-profile individuals and ordinary people who have brought cases against NGN. Many of these claimants have already spent significant sums on legal fees and are now facing the prospect of even higher costs.
Legal experts say that if NGN succeeds in recovering the shortfall from claimants, it could have a chilling effect on future litigation against powerful media organizations. "This sets a dangerous precedent," said a media lawyer. "It could deter people from seeking justice if they fear being left with a massive legal bill."
NGN's response
NGN has declined to comment on the specifics of the insurance policy but has stated that it is committed to resolving the litigation fairly. In a statement, the company said: "We have always sought to settle claims where appropriate and will continue to do so. The insurance matter is a commercial issue that we are dealing with."
However, claimants' lawyers argue that NGN is using the insurance shortfall as a tactic to pressure them into accepting lower settlements. The case is expected to go to trial later this year, with both sides preparing for a protracted legal battle.
