The House of Lords ruling in the dispute between OK! magazine and Hello! over the wedding photos of Catherine Zeta-Jones and Michael Douglas shows the law will only interfere with the world of business in clearly defined instances, lawyers say.
After a seven-year legal battle, OK! won its appeal against glossy rival Hello! after the Law Lords decided that the £1m exclusive picture deal the Hollywood couple struck with OK! was capable of being protected by the courts.
The Douglases and OK! sued Hello! for breach of confidence and damages after it published unofficial spoiler photographs in the same week as OK!’s “exclusive” shots.
The House of Lords decided that the £1m damages payment awarded by the High Court in April 2003 should stand. This overturns the Court of Appeal ruling that the deal between OK! and the Douglases did not give the magazine any enforceable legal rights.
In a 3-2 majority decision, the Law Lords decided the contract should have been binding. They, however, ruled that Hello! did not damage OK!’s business so the sides must split £8m in legal costs.
Macfarlanes
