Where does Douglas v Hello! leave the law of confidence? Anna Caddick investigates
On 2 May 2007, the House of Lords (split 3-2) found in favour of OK! magazine in the long-running case of Douglas v Hello! [2007] UKHL 21, [2007] All ER (D) 44 (May). After six years, the Law Lords have given the final word: Hello! is liable to OK! for £1,033,156 lost profits caused through spoiling OK!’s exclusive for the Catherine Zeta-Jones/Michael Douglas wedding. OK! failed in its claim for the tort of intentionally causing loss by unlawful means, but won on the law of confidence. The overwhelming majority of the 96-page judgment deals with economic torts. This article examines only the confidence action, which was sidelined.
OK! contracted with the Douglases to publish exclusive photographs of their 2000 New York wedding. The wedding had heavy security and guests were not permitted to take photographs. Despite this, a paparazzo crashed and took some bad quality photographs. Hello! published them on the same day that OK! published its exclusive. Mr Justice Lindsay found that Hello! was liable to OK! (as well as