Hugh Grant, star of the ever-popular Christmas film Love Actually, recently announced on X, previously known as Twitter, that he had settled his legal against News Group Newspapers (NGN), the publisher of The Sun, for “an enormous sum” albeit under sufferance. It seems NGN has used one of the most effective tools available in litigation: the Part 36 Offer.
Grant’s Legal Battle
Grant’s legal battle against NGN included allegations of phone tapping, unlawful information gathering and phone hacking and even “burglaries to order” to obtain private data. Despite NGN’s denials, they opted to make an offer , which is common in high-stakes cases like this one.
Grant said, “I would love to see all the allegations that they deny being tested in court. But the rules around civil litigation mean that if I proceed to trial and the court awards me damages that are even a penny less than the settlement offer, I would have to pay the legal costs of both sides.”
What is a Part 36 Offer?
A Part 36 Offer is a mechanism by which a party makes an offer to settle the claim and the other party’s costs. If the offer is not accepted and the case goes to trial, the party making the offer can enjoy considerable financial benefits if the other party fails to win more at trial, even though the other party has won.
In Grant’s case, even if NGN lost and had to pay Grant compensation, if the Judge decided the compensation should be less than the amount NGN had offered, then even though Grant had won, he would still have to pay most of NGN’s legal fees from when the offer period expired. (NGN would have to pay most of Grant’s legal fees up to the offer.)
Grant commented:
“My lawyers tell me that that is exactly what would most likely happen here. Rupert Murdoch’s lawyers are very expensive. So even if every allegation is proven in court, I would still be liable for something approaching £10 million in costs.”
Our expert, Elizabeth Wilkinson – Partner & Head of Dispute Resolution, adds:
“Grant had previously made it clear that he wanted his day in court, but NGN’s timely and well-pitched offer has demonstrated what an effective weapon a Part 36 Offer can be. It may exert just enough pressure on even the most combative claimants to settle the proceedings and, as a result, save significant legal costs and stress for all concerned.”
Settlement & ImplicationsThis case brings attention to the issue of press ethics and the legal strategies employed by powerful media entities. Grant, an advocate for press reform, says he intends to use the settlement money to support campaigns against unethical practices in the media industry.
Although a Part 36 Offer was used by the Goliath against David in the Grant case, it can be employed by the David/underdog just as effectively and can somewhat level the playing field, enabling parties to challenge powerful opponents without huge resources themselves.
Legal Insights and Services at Slater Heelis
Understanding the ins-and-outs of legal mechanisms like the Part 36 Offer is crucial for anyone involved in litigation. At Slater Heelis, our Dispute Resolution team is adept at working with these complex issues and providing high-quality strategic advice to their clients.
If you have any questions, require further information on Part 36 Offers, or any other similar legal matter, please contact our Dispute Resolution team.
You can reach one of our experts today at 0330 111 3131 or via our contact form here.