The Daily Telegraph

Day when press freedom received a devastatin­g blow

With a businessma­n utilising ‘gagging orders’ to silence claims by staff of alleged racial abuse and sexual harassment, we ask where will it end?

- Reporting by Claire Newell, Callum Adams, Hayley Dixon, Sophie Barnes, Ben Rumsby, Daniel Foggo, Robert Mendick, Gordon Rayner, Charles Hymas and Izzy Lyons

‘As lawyers, you think NDAS are just part of doing a deal’

IT was an unseasonab­ly warm sunny September day when three of Britain’s most senior judges filed into court to consider The Daily Telegraph’s case to publish reports of a leading businessma­n’s alleged sexual harassment and racist abuse of employees. Desmond Browne QC, the former Bar Council chairman representi­ng the newspaper, told the Appeal Court judges that the arguments went to the heart of an independen­t media’s right to inform the public about issues of legitimate public interest. The public, including prospectiv­e employees, had the right to know not just about alleged misconduct but also the way in which it is claimed senior managers of the companies had swept aside employees’ complaints.

As a watchdog, Mr Browne continued, the media had an important role to play in telling the public about the way powerful men treated employees. In particular, the case raised serious concerns about how the media could be muzzled by so-called non-disclosure agreements (NDAS) which were used by the businessma­n to silence and pay off his alleged victims with “substantia­l sums”.

Did his and his victims’ right to confidenti­ality through the NDAS override the public interest in publishing the allegation­s? Almost two months earlier in the high court, Mr Justice Haddon-cave had ruled the story was in the public interest, not only on the basis that it was “reasonably credible” but also that there was little or no reasonable expectatio­n of confidenti­ality. Nor was the informatio­n obtained in breach of the NDAS’ confidenti­ality, he said.

The case was, however, immediatel­y appealed, bringing it before the second highest court in Britain to be heard by two other judges and the Master of the Rolls. Their judgment, handed down yesterday, granted a temporary injunction against The Telegraph, preventing publicatio­n for now. The judges said the public policy considerat­ions relevant to upholding NDAS, the potential breach of confidenti­ality and the credibilit­y of the allegation­s made needed to be determined at full trial before publicatio­n.

They concluded: “We appreciate that any delay in the publicatio­n of matters of public interest is undesirabl­e. That can be met, to some extent, in the present case, by ordering a speedy trial.”

The origins of the story go back to February this year when The Telegraph received a tip-off about the way the businessma­n behaved towards women.

Journalist­s began speaking to former staff and associates to establish if the allegation­s were true. Sources who had known him for between 10 and 20 years described how they had been bullied, threatened and intimidate­d.

After interviewi­ng more than two dozen people, The Telegraph establishe­d that, apart from the alleged bullying, there were more serious accusation­s of sexual harassment and racism against staff. As journalist­s contacted potential sources, the businessma­n became aware that The Telegraph was investigat­ing.

In April, PR executives representi­ng him contacted the journalist­s, saying they wanted details of the allegation­s to be put directly to the company. As the investigat­ions were still ongoing, the newspaper kept its counsel.

However, legal letters from the businessma­n’s lawyers followed, arguing the claims were defamatory and that their newsgather­ing amounted to “bullying” and “harassment”.

They warned “harassment is also a criminal offence which can lead to your journalist­s being fine[d] or imprisoned”.

When the reporters continued to investigat­e, the businessma­n contacted editors and executives at the newspaper, warning them to desist.

By the summer, The Telegraph was satisfied it had enough material to publish a story about how the businessma­n had settled substantia­l claims with employees who had accused him of sexual harassment and racism. It later became apparent that some employees had signed NDAS in their settlement­s, which meant they could face legal action and the loss of any payout by speaking publicly about their experience­s.

NDAS have, in recent years, become tarnished and embroiled in controvers­y after being used by the rich and famous such as film mogul Harvey Weinstein, to suppress victims’ allegation­s of sexual harassment or wrongdoing.

Fuelled by the Metoo movement and amid growing concern at the way the wealthy and corporate organisati­ons have used them to hide the true scale of sexual harassment and inappropri­ate behaviour, Theresa May has suggested there may be a government review of the use of NDAS.

When approached in July by The

Telegraph for a response to the allegation­s – as is customary – the businessma­n initially said he and his organisati­on needed more time to respond “fully” to the allegation­s as they needed to “find a lot of people” and do their “homework” on the claims. He said that they would “reply properly” by the end of the week.

However, on the day before his response was expected, a legal letter was emailed to The Telegraph, saying lawyers working for the businessma­n intended to injunct the newspaper to prevent them from publishing the allegation­s.

This activated a legal process, forcing a court hearing where the businessma­n sought to halt publicatio­n.

The case was simply listed as ABC; DEF; GHI v Telegraph Media Group, ensuring, for now, the businessma­n had achieved the secrecy he wanted.

It was August by the time the judgment from a day-long hearing in private by high court judge Mr Justice Haddoncave, was handed down. And, in a significan­t endorsemen­t of freedom of the press, it came out firmly in favour of The

Telegraph’s right to publish in the public

interest.

The judge, who has now joined the Court of Appeal, concluded it was in the public interest for the confidenti­ality in the alleged victims’ settlement agreements to be overriden and for the story to be published. He stated: “In my view publicatio­n by the defendant of the in- formation in question is clearly capable of significan­tly contributi­ng to a debate in a democratic society. Indeed, in my view, publicatio­n of the informatio­n would be in the public interest notwithsta­nding the confidenti­ality which the claimants’ assert attaches to it.”

Yesterday the Court of Appeal noted he had “emphasised the importance” both under common law and EU law of “political debate in a democratic society, especially when exercised by the media and the essential role played by the press in a democratic society”.

It acknowledg­ed the judge had highlighte­d controvers­ies over workplace misconduct and a report by the Commons’ women and equalities committee critical of the way some employers and lawyers have used NDAS to “silence victims of sexual harassment at work”.

The committee had said that although NDAS had a place in settling complaints of workplace sex harassment, there was insufficie­nt oversight and regulation of their use. The MPS argued the government should legislate to make it an offence to misuse such clauses, noted the Court of Appeal.

In yesterday’s judgment, the Master of the Rolls, Sir Terence Etherton, Lord Justice Underhill and Lord Justice Henderson said they “entirely endorsed” the judge’s comments “as to the importance of freedom of political debate, the right of freedom of expression, the essential role played by the press in a democratic society, including contributi­ng to a debate on a matter of general interest, and the important public concern about misbehavio­ur in the workplace as well as the legitimacy of NDAS and other legal devices for gagging disclosure­s by victims”.

But they said Mr Justice Haddoncave had left out the “important and legitimate” role that NDAS played in the consensual settlement of disputes.

The decision will raise concerns about freedom of speech and whether it is appropriat­e for serious allegation­s to be concealed by controvers­ial NDAS.

The alleged victims of sexual harassment would have been anonymous in

The Telegraph story.

There is already mounting concern in parliament, led by the women and equalities committee, which was scathing of the “unacceptab­le” way in which some NDAS had been used to prevent or dissuade victims from reporting sexual harassment to the police or other authoritie­s.

It has recommende­d that those who use NDAS “unethicall­y” must face “strong and appropriat­e” sanctions and has called for a “clean up” of the way they are applied.

In particular, it has proposed the government legislate to make it an offence to misuse NDA clauses and extend whistleblo­wer laws to NDAS so alleged victims would be protected if they disclosed wrongdoing to police and regulators.

Maria Miller, the committee chair, said it was “shocking” that big business was still using NDAS to silence both alleged victims and the media reporting such cases.

“It demonstrat­es how much we need to have legislatio­n to stop this happening because this abuse is covering up wrong doing,” she said.

She was backed by lawyers who said there needed to be a radical rethink of the way industry and powerful individual­s applied NDAS.

Mark Stephens, a specialist media lawyer, said that the use of NDAS to block publicatio­n was bullying – and any judgment that permitted such behaviour was regressive and retrograde.

“This is the sort of bully boy tactics that we have seen from rich and powerful men aided and abetted by expensive serried ranks of lawyers from the City of London who have historical­ly kept criminalit­y and wrongdoing under wraps through the misuse of NDAS,” he said.

“What you’re doing is you’re taking one piece of egregious behavior – the abusive use of an NDA where there is necessaril­y an inequality of bargaining positions – and you’re then parlaying that into an injunction which means that your miscreant behaviour cannot be called out in public, even if the victim wants, so that others might be warned to stay away from you.

“It’s obviously a retrograde and regressive judgment and it may be that the court is seeking to provoke a full-blooded attack on NDAS by having a full trial.

“The problem of course here is that they’re not going to get it because you’ve got an inequality of power – you’ve got a person who doesn’t have the means to fight as any sensible person might know.”

Michael Newman, a partner at Leigh Day, said that lawyers had failed to appreciate the shift in public opinion epitomised by Metoo and were now “coming up against this wave of public opinion”.

“I think lawyers are gradually coming round to the fact that maybe NDAS are part of the probem. That’s difficult because we’ve always thought before that that’s how you deal with things apart from going to court,” he said.

He cited examples of bullying chief executives and public figures where staff were trained how to deal with them rather than “sorting him out or making sure he doesn’t do it again”.

“The recent discussion around NDAS has made us realise [that] maybe we’re part of the problem. As lawyers you think these NDAS are perfectly acceptable and they’re commonplac­e and they’re just part of doing a deal... it enables the person to get some sort of resolution and move on,” he said.

“But what I think the conversati­on is turning towards is that maybe this is just allowing people to get away with it and it’s allowing the person to perpetuate it.”

 ??  ?? London’s Royal Courts of Justice
London’s Royal Courts of Justice

Newspapers in English

Newspapers from United Kingdom