National newspapers would have to agree to an arbitrator hearing cases brought by claimants who do not want to go to court under a new scheme from the Independent Press Standards Organisation.
IPSO’s arbitration scheme had been voluntary and newspapers could opt not to send cases to arbitration.
But from July, it will be compulsory in any case where a person has a genuine claim against a national newspaper that is a member of the scheme. The rules will mean that anyone could take action against a national newspaper without running up a hefty legal bill in the process.
National newspapers would have to agree to an arbitrator hearing cases brought by claimants who do not want to go to court under a new scheme
Reacting to the announcement, Culture Secretary Matt Hancock yesterday tweeted: ‘I welcome IPSO’s announcement of binding low cost arbitration – an important step forward for a Press that’s both free and fair. Now the papers need to sign up.’
IPSO regulates the vast majority of British newspapers with its members including most of the national papers.
Those taking part in the present voluntary scheme include the Daily Mail, the Times, the Sun, the Daily Telegraph, Daily Mirror and Daily Express. They have until May 4 to sign up to the new scheme.
Previously, publications could choose whether or not to send cases to arbitration, an option which will no longer be open to them. Legal claims that can be heard by an arbitrator under the scheme, without the claimant facing unaffordable legal costs associated with court actions, include libel, invasion of privacy, data protection and harassment.
Bringing an arbitration case will cost the claimant a maximum of £100. And under the new rules they could be awarded up to £60,000, including aggravated damages.
IPSO’s chief executive, Matt Tee, said of the development: ‘Lord Justice Leveson stressed the importance of having a low-cost means of people that had been wronged by a newspaper getting compensation, without the expense of court and legal fees.
‘The new IPSO scheme does exactly that and the papers are not able to choose which cases they take.’
Once IPSO has accepted the claim, a senior barrister will be appointed as an arbitrator. The arbitrator then makes a preliminary ruling on some of the issues at the centre of the dispute.
This will indicate how likely it is that the claim will succeed and provide a basis for settlement negotiations.
If either of the parties wants to continue the claim, it then goes to a final ruling stage. If the claim is successful, the arbitrator can award damages of up to £60,000.
The existing scheme has been in place for 18 months. IPSO will now be writing to its members to set out details of the new rules, which will go live by July 31.