News International to pursue costs for failed phone hacking claims

As reported in the Sydney Morning Herald, News International appears to have changed policy towards  phone hacking claimants, promising to pursue litigants who lose for legal costs.

News International is pursuing the claimants with the first being Mary-Ellen Field, a former plaintiff who recently withdrew her failing lawsuit. Ms. Field, a former business manager for Elle Macpherson has been ordered to pay £75,000 ($124,000) in court costs after lack of evidence led to the failure of her claim that the News of the World hacking of Ms. Macpherson's phone was the reason the supermodel abruptly sacked her in 2005.

Although News International had previously signalled that it would not pursue costs against Ms Field over the failed action, last Thursday, the company sought and was given an order demanding Ms Field pay £75,000 towards News' legal costs within the next three months.

In an official statement, a News International spokesperson stated “We have sought to compensate genuine victims with minimal delay and distress, and without recourse to expensive and time-consuming litigation. Cases that are not supported by evidence will be challenged, and we will seek an award of costs against the claimant, as the law provides."

A source within the company with awareness of the lawsuits said Ms Field’s case indicated a overall change of strategy.

“This is as good a time as any to make a mark,” the source commented. “People need to understand the consequences of bringing a weak case.”

Read more here.

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