Use of CFAs “tie the hands of media companies”
Ian Birdsey, media claims expert at Hiscox, which backed Channel 4 in its recent successful libel defence, has called for reform to the UK's libel laws saying conditional fee arrangements pose a risk, Digital Spy reports.
"Without libel reform, conditional fee agreements and after-the-event insurance pose a dangerous risk and tie the hands of media companies up and down the land,” Birdsey said.
Michael Jackson’s bodyguard
Former bodyguard to Michael Jackson, Matthew Fiddes, dropped his legal action against Channel 4 and production company Studio Lambert after scrapping his claim that a show about the Jackson family had been fabricated.
Because Fiddes was on a CFA he will not receive any money to cover his costs and Channel 4 will not attempt to recover any of the estimated £1.7m it has spent defending the claim.
Hiscox’s fears
Hiscox welcomed the verdict but also claimed that UK libel laws must now be changed. Ian Birdsey said that cases brought under CFA agreements "pose a dangerous risk" to media companies.
"There is no doubt that our unfair and iniquitous libel laws are restricting freedom of expression for media companies," he said. "How is it right that it can cost millions to protect your reputation against outrageous allegations? This case should be the catalyst for long overdue libel reform.
"The exorbitant costs involved means that a lot of media companies would find it impossible to defend their reputation without huge financial support.
“Settling a scurrilous claim was never an option even with the high costs involved. We decided to support our clients to the end and we are delighted with the result.
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