For a free press

Hiscox is lobbying to support its media clients who are defending defamation claims

The Legal Aid, Sentencing and Punishment of Offenders Bill published on 21 June may not sound as though it has much to do with libel or Hiscox. For all those involved with the underwriting of defamation, however, it marks an important turning point.

For years, Hiscox has argued that costs in libel cases are out of control. Publishers, broadcasters and others in the media have faced the prospect of legal expenses out of all proportion to potential damages. A recent study, for example, found that the cost of libel claims in England and Wales was more than 140 times the European average.

This has had an effect on freedom of speech, with media owners unable to risk publication, even when reports are in the public interest or when cases would be defendable.

Front line of reform
Hiscox’s specialist TMT team, led by Ian Birdsey and Suzanne Kemble, lobbied the Government during its recent consultation process following the Jackson Review. In submissions to the Ministry of Justice, Hiscox argued that conditional fee agreements should be abolished and after-the-event premiums should not be recoverable by claimants from defendants.

“We’ve called for these reforms to support our media clients,” Suzanne says. “I’ve got numerous libel claims on my desk where we are trying to defend claims for regional publishers.”

Ian explains that two or three column inches in a local paper can lead to a libel challenge and about £50,000 worth of costs. “Regional newspapers often don’t feel able to defend claims they think they’ll win because of all the legal costs,” Ian says. “The current law stops editors printing stories because they’re worried about a claim. It also gives them no confidence to defend cases they should win.”

Hiscox would like the Government to go further and encourage earlier, stronger and more effective case management in defamation and privacy cases. The draft Defamation Bill, which was published in March, would be stronger if it encouraged parties to explore early resolution through mandatory settlement offers or mediation.

Even though the legislation is not perfect, if it all goes through, libel costs should fall and Hiscox will have played an important part in creating an improved situation. And media organisations will benefit immediately from greater freedom of expression and being able to defend more claims.

“We’ve spoken at industry conferences and people know that we’ve been part of the call for reform,” Ian says. “We offer a fresh perspective and a unique view as a specialist media insurer compared with other interested parties. It shows Hiscox as a thought leader and industry expert.”