The Blogger, the Defamation Claim and the £50,000 Legal Bill

On the 23rd of July, a court dismissed a defamation case brought against the Portsmouth blogger Micah Hall. The claimants, the Najadi family and their Capital Finance Holding Group (Suiss) SA, had two weeks to appeal. They did not.

This should have been the end of the matter. Instead, Hall could now be liable for costs of around £20,000.

The story began earlier this year. In February and March, solicitors Mishcon de Reya, acting for the Najadis, sent Hall a letter before action. They alleged a series of defamatory statements had been made in a blog post about the investors behind the failed Keith Harris bid for Portsmouth Football Club. Pascal Najadi was one of Harris’ named backers, alongside a vet named Alan Hitchins. The blog in question, one of three written about the Harris consortium, had already been removed by the website owner, Fansnetwork. Despite this, Mishcon de Reya pursued the blogger for apologies, costs and damages.

A Classic SLAPP Suit

For many observers, the action had all the hallmarks of a Strategic Lawsuit Against Public Participation, or SLAPP suit, designed to silence a persistent critic. Hall had been a constant thorn in the side of the Portpin ownership at Pompey since Balram Chainrai first placed a debenture on Fratton Park back in October 2009. The blogger maintained that his article contained nothing factually incorrect and stood by what he had written. But defamation law is a complex and expensive business. Proving you are right can be ruinously costly, a fact that law firms sometimes use to ensure a critic can be silenced without ever seeing the inside of a courtroom, where embarrassing allegations might be aired publicly.

On legal advice that suggested a strong defence based on grounds such as ‘fair comment’, Hall decided to stand his ground and provided a rebuttal. This initiated a period of correspondence between the two legal teams. The strength of his case was such that he secured a lawyer prepared to work on a ‘No Win, No Fee’ basis. This came after he had already incurred costs of around £10,000 for initial legal advice, a sum to which Pompey fans had rallied to contribute before the fund was exhausted.

The pressure on Hall, a senior IT manager, was immense. A married man with four children, he was forced to put a job offer in Manila on hold while the case was ongoing. He had already dedicated a year of his time to working on the Pompey Supporters Trust’s bid for the club after being made redundant in early 2012. The threat of bankruptcy loomed if the case went against him, throwing his family’s life into disarray.

Case Dismissed, Costs Remain

Events elsewhere moved faster. On the 10th of April, a separate court case was settled, giving the Pompey Supporters Trust the go-ahead to purchase the club. The very next day, Hall received notification that the defamation case against him was proceeding to court. The information collected by Hall and the Pompey Bloggers Collective over three years was acknowledged by many as a significant contribution to the success of the Trust’s bid.

Negotiations continued. Then in June, Mishcon de Reya informed the court that they no longer represented the Najadis. For the case to continue, the family would have to appoint new lawyers. They failed to do so, leading to the court’s dismissal of the case on the 23rd of July. This made Pascal Najadi liable for all court costs, estimated at about £50,000. This figure includes Hall’s original £10,000 costs plus a 50% success fee payable to his ‘No Win, No Fee’ lawyer.

Here is the sting in the tail of defamation law.

If the Najadis do not pay the court-ordered costs, the bill defaults to Micah Hall. The success fee would be waived, but he would still have to find approximately £20,000.

An International Tangle

Hall is not optimistic about receiving payment. On the 29th of July, Pascal Najadi’s father, Hussain Najadi, was assassinated in Kuala Lumpur. His son is currently in Moscow, reportedly negotiating banking business in Kazakhstan. Despite requests from police in Kuala Lumpur investigating the murder, Pascal Najadi has seemed reluctant to leave Russia, stating he feels safe there. He did not attend his father’s funeral.

The situation offers a stark warning to other bloggers investigating the often murky finances of football clubs. Fans at Leeds have faced their own litigious owner in Ken Bates. Those looking into the tangled webs at Coventry and Birmingham are well aware of the risks they take. Hall chose not to be bullied, and now faces a heavy price for his principles. He has since been appointed Fan Engagement Manager at the now fan-owned club, but the £20,000 bill hangs over him while his lawyers pursue Pascal Najadi for payment. Fans of Portsmouth FC may yet take a hand in the matter, with a fund being set up to collect donations.