Phone hacking: QC warned of
'culture of illegal information access'
at Fox's 'News of the World'
Phone hacking: News of the World lawyer Tom Crone warned editor Colin Myler of about a 'damning email' in 2008. Photograph: PA
This afternoon's events as they unfolded:
The parliamentary select committee investigating phone-hacking at the News of the World has just published a slew of internal News International documents.
They represent a treasure trove of new material and give fresh insight into how the News of the World, its editors and legal managers and ultimate boss, James Murdoch, handled serious phone-hacking allegations back in 2008.
There are dozens of pages including notes relating to key conversations with Murdoch regarding a settlement with Gordon Taylor, the Professional Footballers Association boss who sued News International back in 2008 for phone hacking.
We are going through the documents now.
First up is an admission that Taylor has potential "fatal" evidence on phone hacking at the News of the World.
It is contained in an email from the paper's former legal manager to the former editor of the News of the World Colin Myler in May 2008 regarding the discovery by Taylor of "a large number of transcripts of voicemails" from his phone.
The email also raises concerns about alleged illegal activity on the News of the World including the identification of car owners via their number plates. A number of the people involved have moved to the Sun, Crone notes.
Among the documents Taylor's lawyers got through a process of discovery were a list of News of the World journalists and detailed table of data protection infringements between 2001 and 2003.
"A number of these names are still with us and some of them have moved to prominent positions on NoW and The Sun. Typical infringements are 'turning around' car reg and mobile phone numbers (illegal)," says the email.
It adds: "This evidence, particularly the email from the News of the World is fatal to our case."
In the same email Crone tells Myler that "recognising the inevitable", he has authorised the company's solicitors Farrers, to make a formal offer to Taylor of £150k plus costs.
An hour and 15 minutes after this email, Crone emails Julian Pike, the lawyer dealing with the Taylor case at Farrers.
The email is redacted but Crone tells Pike he has been through the Taylor documents and spoke to individuals at the News of the World regarding the transcripts and that that the private investigator [Glenn] "Mulcaire had been dealing with Greg Miskiw for months on it before that.
Miskiw is a former news editor on the paper.
James Murdoch's solution to phone hacking at the News of the World would be to "get rid of the cancer", the former editor of the paper tells Farrer lawyer Julian Pike in a telephone call on May 27 2008.
A handwritten note of the phone conversation shows that Myler reported back to Pike.
"Spoke to James Murdoch - not any options - wait for silks [sic] view." Myler goes on to discuss various individuals in the newsroom which are identified by initials. He refers to former royal editor Clive Goodman.
"CG sprayed around allegations, horrid process."
This appears to refer to a Goodman letter, already published by the culture select committee, in which he alleged phone hacking was not limited to a single rogue reporter.
Former News of the World editor Colin Myler. Photograph: Peter Macdiarmid/Getty Images Myler tells Pike he could not substantiate these allegations.
"appealed agst his sacking failed to give direct evidence."
The hand-written note show Myler then went on to discuss what top management would do and refers to Les Hinton, the former executive chairman of News International who had been sent to New York to run the Wall Street Journal, then recently acquired by Rupert Murdoch.
"Les no longer here - James wld say get rid of them - cut out cancer'.
The note does not specify who 'them' refers to, or whether this was a verbatim report of a conversation Myler had with Murdoch earlier.
He has just had a conversation with James Murdoch and subsequently spoke to lawyers at Farrers.
A hand-written note of a conversation lawyer Julian Pike had with Myler on 27 May 2008 has also been published.
Another handwritten note of a conversation between Pike and Mark Lewis, Taylor's solicitor. They were discussing a potential settlement after Taylor had got hold of the highly damaging 'for Neville' email that proved phone hacking at the tabloid was not confined to "one rogue reporter".
A figure of £1.2m is discussed, according to the notes.
Taylor wanted "7 figures not to open his mouth". The Football Professionals Association boss also wanted to "be vindicated or rich", the note says, confirming evidence submitted in September to the select committee.
The two lawyers go on to discuss costs and Taylor's determination to go to court if he has to. "One way or another this is going to hurt," Lewis tells Pike, also warning that phone hacking was "rife in organisation".
This is the transcript of what Lewis said:
"Don't know if that is a [indecipherable'
7 figures not to open his mouth
be vindicated or rich
paid £1m all costs - indemnity costs 200k inc barrister + VAT he [Taylor] won't be beat"advised not be casual not at risk an more - j might think been generous
"i want to carry on because of issues because NGN is wrong then carry on - one way or another this is going to hurt
"want to show NoW stories - NoW doing this - rife in organisation - Palt enquiries told this not happening when it was. I want to speak out about this."
The telephone conversation between News International's lawyers and Gordon Taylor's lawyers subsequently relayed to New Group Newspapers, publishers of the News of the World.
PFA boss Gordon Taylor. Photograph: Tom Jenkins/Guardian The memo published by the select committee shows how Taylor was driven to seek £1m in compensation plus £200,000 in costs because he was not happy that the company was telling parliament that phone-hacking was limited to one rogue reporter.
"Taylor wanted to show that the News of the World stories had been illegally obtained".
"He wanted to demonstrate that the NoW had been doing this and that it was rife in the organisation when The NoW had been making public statements including statements in parliament telling them that they [sic] were simply a rogue trader. Taylor was not happy about this. He wanted to speak out about all of this."
Farrer partner Julian Pike has a subsequent conversation with the then News of the World legal affairs manager Tom Crone on June 10, 2008.
Crone tells Pike he has had a meeting with JM - presumably James Murdoch - and CM - presumably the then editor Colin Myler.
The note of the conversation is confusing but two points are clear - Murdoch wants to consider his options and Myler wants to Taylor to "fuck off".
Here's the transcript:
"Tom
Mtg with JM + CM
JM sd he wanted to think through optionsCM moving towards to tell Taylor to fuck off
- on the end of drip drip - do a deal with them
- paying them off + then silence fails
- if intriguing progressGM in more deeply - if damages award admitting liability - be in jointly for + if he is."
News Group was advised by legal counsel as far back as June 2008 that the evidence uncovered by Taylor's legal team was "very damaging to NGN" and that the police disclosures showed that "at least three" journalists were "intimately involved" in illegal research.
Barrister Michael Silverleaf said in a written legal opinion to NGN dated 3 June 2008, that "it seems clear that Mr Mulcaire was specifically asked to look into certain activities by Mr Taylor".
Silverleaf says the material obtained from the Metropolitan police "has disclosed that at least three NGN journalists ... appear to haver been intimately involved in Mr Mulcaire's illegal researching into Mr Taylor's affairs."
He refers to a document dated 4 February 2005, and signed by Greg Miskiw, a former news editor on the paper which agrees to pay a Paul Williams £7,000 on publication of a story.
Williams is a pseudonym used by the private investigator at the centre of the phone-hacking scandal, Glenn Mulcaire.
News Group was also advised by Silverleaf that there was nothing that could "possibly justify the use of unlawful means to obtain information" about the Taylor story.
He advises them that the prospects of winning against Taylor in a breach of confidence and invasion of privacy case are "slim" to "non-existent".
Silverleaf told News Group that it was "vicariously liable for the conduct of its employees unless they were acting on a frolic of their own".
If you are wondering why the expression "vicariously liable" seems familiar, it's because the phrase was used by James Murdoch in a letter to the select committee last week.
In the letter Murdoch admitted that News International will have to pay any damages awarded against the private investigator Glenn Mulcaire, in instances where it is proven he was instructed to hack phones by News of the World staff.
Silverleaf does not pull his punches.
He says there is a "powerful case" that there was a culture of "illegal information access" at the paper and if this came out in court it would be "extremely damaging to NGN's public reputation".
Paragraph 6 of his legal opinion to NGN in June 2008 says:
"There is overwhelming evidence of the involvement of senior NGN journalists in the illegal enquiries into ...[redacted]."
"In addition there is substantial surrounding material about the extent of NGN's journalists' attempts to obtain information access to information illegally in relation to other individuals.
"In light of these facts there is a powerful case that there is (or was) a culture of illegal information access used at NGN in order to produce stories for publication.
"Not only does this mean that NGN is virtually certain to be held liable to Mr Taylor, to have this paraded at a public trial, would I imagine, be extremely damaging to NGN's public reputation."
John Whittingdale, chairman of the select committee says the documents are proof that senior managers at News of the World were aware "for a long time" of evidence that phone hacking was widespread at the tabloid.
"This contradicts the evidence given to us previously and we shall be asking about this when James Murdoch comes before the committee," he said.
A summary of the day's events:
• News International was advised by legal counsel as far back as 2008 that there was "overwhelming evidence" that at "a number of senior journalists" at the News of the World were involved in phone-hacking.
• Michael Silverleaf, QC, told the publisher there was "a powerful case" that a "culture of illegal information access" existed on the paper and this would be "extremely damaging" to the "company's public reputation" if this got out in a court case.
• The News of the World's chief lawyer Tom Crone privately told the paper's editor as long ago as 2008 that a "damning email" existed showing that the tabloid made use of "extremely private voicemails" left on the telephone of football boss Gordon Taylor in 2008
• Taylor's lawyers had obtained evidence that "at least three journalists" on the paper were "intimately involved" in Glenn Mulcaire's illegal researching.
• Crone described the evidence as "fatal to our case" in a memo to ex editor Colin Myler ahead of a meeting with James Murdoch to discuss whether to settle Taylor's claim. He said the company's position was "perilous".
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• This article was amended on 2 November 2011 to remove an incorrect reference to former News International chief operating officer Clive Milner in the 3.47pm update. The "CM" referred to was presumably News of the World editor Colin Myler.
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