PARLIAMENTARY DEBATE
Strategic Lawsuits Against Public Participation - 17 March 2022 (Commons/Commons Chamber)
Debate Detail
Today, I am setting out the proposals to tackle strategic lawsuits against public participation—the so-called SLAPPs—to end the abuse in UK courts, and of UK laws, by corrupt oligarchs and Putin allies to protect democratic debate and to uphold our fundamental liberties of free speech and a free press.
Let me offer the House a recent illustration of the problem we seek to tackle. Earlier this month, the British journalist Tom Burgis was sued for libel in the High Court by the oligarch-owned mining company ENRC. His book “Kleptopia: How Dirty Money Is Conquering the World” seeks to chart how dirty money is being used around the world, highlighting instances of money laundering, corruption and other wrongdoing.
ENRC did not just bring its claim against Mr Burgis’s publisher, but made multiple claims against him personally, as the author of articles, tweets and podcasts about his book. The High Court dismissed ENRC’s claim at a preliminary stage, on the grounds that the statements it had complained of were not defamatory, and awarded costs to Mr Burgis. It should be said that ENRC has also been under criminal investigation by the Serious Fraud Office, and during that period, ENRC has also brought two separate High Court civil claims against the SFO itself, in 2019 and in 2021.
That is not a one-off case, however, and such cases often do not end well. Certainly, they do not always end in the way the libel suit I mentioned did. I give it as an illustration, but that one-off case is part of a worrying and growing pattern of conduct that we are starting to see, whereby those accused of wrongdoing try to use their deep pockets and the UK courts to financially bully their critics into submission.
I will try to give the House a sense of the scale of the problem. Provisional figures from the Coalition Against SLAPPs in Europe, CASE, estimates that there were 14 such cases in the UK last year. It is worth pausing to reflect that that is a significant increase from just two in 2020 and one in 2018. This is a relatively recent, but burgeoning, phenomenon. Across Europe, CASE has identified 538 SLAPP cases over the past decade, 26 of them brought in this country, so this is not just a UK problem.
As a matter of plain principle, it is wrong that unscrupulous individuals and corporations are able to exploit our laws and our courts in this jurisdiction with claims designed to muzzle respected journalists, academics and campaigners, explicitly to stop them from shining a light on corruption and links to organised crime. If we think about it for a moment, this is a modern-day struggle between David and Goliath. We have individual journalists, authors and academics on the one hand, pitted against billionaire oligarchs, some of whom bankroll the Kremlin, on the other. We in this House cannot, and will not, allow our courts and our justice system to be used by those kleptocrats to intimidate and harass those who lift the lid on their murky dealings and wrongdoing.
The stark reality of the problem runs far deeper than the relatively small number of cases that will ever reach court. It is fair to say that the high-profile cases that we know about are likely to represent just the tip of the iceberg. This is probably the most important point for the House today: SLAPPs have their most pernicious impact through the pre-action letters and legal pressure applied well before court proceedings are initiated. Understandably, if a researcher or campaigner of relatively modest means finds themselves on the receiving end of such bullying tactics, the risk is that they will back down before a formal case is begun, for fear of the sky-high costs and damages that most working people in this country could not possibly afford to bear.
That is the harm we must guard against—publishers and authors forced to hesitate before publishing properly grounded stories, and legitimate, well-researched investigative reporting reined in, or perhaps not begun in the first place, for fear of the crushing legal costs. The most serious and surreptitious danger in all this is that SLAPPs then have a chilling effect on the transparency that is essential to a healthy democracy.
Of course, the war in Ukraine has highlighted the urgency of tackling what is a recent but none the less growing problem. The same kleptocrats availing themselves of SLAPPs are often found bankrolling President Putin’s war machine. As the Kremlin silences Russia’s independent press and jails critics of its illegal war, in this House and in this country we will stand up for those shining a light on corruption and cronyism.
So today I have set out proposals to reform our libel laws and launched a call for evidence, a copy of which is available in the House, that asks for views on how to make these reforms as targeted and effective as possible. Let me briefly summarise the measures we are taking. First, we will consider whether it is necessary to establish a legal definition in order to create a higher threshold for SLAPP-type cases, and look at whether we need to introduce stronger powers to enable our courts to strike them out earlier as an abuse of process to deal with the risk, the threats and the bullying that these cases involve. Secondly, we will set out for consideration options to strengthen the public interest defence. Thirdly, we will consider limiting legal costs in SLAPP cases, perhaps capping the costs that claimants can receive, to address the issue of the glaring inequality of arms between the parties in these kinds of cases. Fourthly, our proposals allow courts to put restraint orders on repeat litigants and consider the case for a specific requirement for SLAPP claimants to prove malice in libel cases. Fifthly, we will review the wider existing defences in our libel laws to assess whether and how they could and should be reformed to counter the growing threat from SLAPPs. Sixthly, we will look at the regulatory regime. In fairness, I should point out that the Solicitors Regulation Authority recently issued new guidance reminding solicitors of their duty to report misconduct, identifying SLAPPs as an example of litigation for improper purposes. We will assess how that regulation is working and whether it is adequate in the light of the evidence that we have.
This call for evidence is necessary to provide us with the most robust basis on which then to move swiftly to introduce the targeted reforms to deal with the problem at hand. These reforms sit alongside our proposals for a Bill of Rights that will reinforce freedom of speech and freedom of expression. This is a good example of why that Bill of Rights is necessary.
Today in this House we have an opportunity—I hope that hon. Members on both sides will embrace it—to put President Putin and his cronies on notice. We will not allow our courts to be abused to censor those brave enough to call out corruption. We will protect our free press, which is there precisely to hold the powerful to account. We will defend freedom of speech—the liberty that guards all our other freedoms in this country. Our reforms will further strengthen free speech so that those with blood on their hands and those with dirty money in their bank accounts are no longer free to hide in the shadows. I commend this statement to the House.
We are used to double standards from this Government when it comes to Russian dirty money. Senior Ministers, including the Prime Minister himself, partied with Kremlin-linked oligarchs even as their plundered wealth flooded into London. They buried the Intelligence and Security Committee’s Russia report instead of acting on the threats it exposed to our politics and to our democracy. The reason there has been an increase in this kind of lawsuit—what the Secretary of State called a “glaring inequality of arms”—in this country is that the Conservative party got itself hooked on the Kremlin’s dirty money. My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) has worked bravely to expose the Conservatives’ increasing dependency on Kremlin-linked oligarchs. Can the Deputy Prime Minister tell us how many Conservative party donors have used a SLAPP to silence free speech?
These measures, welcome though they are, are too little, too late. Labour called on the Government to fix this problem way back in January. My hon. Friend the Member for Hammersmith (Andy Slaughter) demanded clearer guidance for judges, tougher regulation of law firms, and legislation to control costs so astronomical that no one can afford to stand up to Putin’s bullying billionaires. My right hon. and learned Friend the Leader of the Opposition demanded legislation two years ago.
The Conservatives’ track record is frankly problematic. They ignored the Leveson inquiry when it called for low-cost litigation for claimants and defendants in media cases. Instead, they sided with Putin’s oligarchs against British journalists and campaigners until it was far too late. The Secretary of State says that he wants to end abuses in UK courts by Putin’s cronies, but he is proposing a consultation that does not finish until 19 May. Has he made an estimate of how much these oligarchs will continue to abuse the current skewed system until then, as they attempt to hide their collaboration with the Kremlin? Let us be clear: their money funds Putin’s wars of aggression in Chechnya, Georgia, the Crimea, and now the rest of Ukraine. The Government must act much faster if they want to cripple Putin’s war machine and stop it slaughtering the children of Ukraine-.
The Secretary of State mentions the Solicitors Regulation Authority, but what penalties will be imposed on firms acting in these cases? What is the SRA doing to check that solicitors are doing proper due diligence on oligarch clients and the source of their wealth before helping themselves to a share of it? What action is he taking to stop law firms helping the Russian state to make money that helps to fund Putin’s war machine? Putting Putin “on notice” is not enough—the Government must end this corruption now.
The hon. Gentleman says that this is too little, too late. In fact, in January, when he says Labour called for this, Justice Ministers had already made it clear that we were actively working on proposals. Indeed, I made that clear in the House in February. He referred back to 2018, or a couple of years ago. We had one case in 2018. As I said, this is now a burgeoning problem. Frankly, an element of “Captain Hindsight” seems to have crept along the shadow Front Bench.
In relation to the broader points that the hon. Gentleman makes about oligarchs, I set out in the House yesterday the scale and the level of sanctions that we have imposed—indeed, with cross-party support. We have led the way internationally.
The hon. Gentleman did not really make any substantive points about the consultation. [Interruption.] He did not really, actually—[Interruption.] The hon. Member for Bristol West (Thangam Debbonaire) is chuntering from a sedentary position. He did not really ask me anything—
I look forward to the hon. Gentleman taking some time to look over the proposals in a slightly more sober way. I hope that, on reflection, he will agree to that, given that some Labour Members, particularly the hon. Member for Rhondda (Chris Bryant) and the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), as well as my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), have shown that this can be done in a cross-party way.
“acts of hybrid warfare which are used to weaken the UK’s democracy, judicial system and fundamental freedoms”.
Given that we know that Kremlin-linked oligarchs use SLAPP lawsuits to silence criticism and to attempt to control the public narrative, what steps is the UK taking to ensure that we cannot be manipulated to silence free speech, while protecting journalists and political activists? What steps are the Secretary of State and the UK Government taking to name and shame such companies and will specific secondary legislation be proposed to strengthen existing defamation and libel laws?
My hon. Friend asked more generally about what we are doing around the world. When I was Foreign Secretary, we ramped up the Media Freedom Coalition, which, in my time, we chaired with the Canadians. I am not sure whether it is them or us who currently hold the chairmanship—I think it is the Canadians. We expanded that coalition. The idea was to help with the legislation that countries have to protect free speech and to ensure that, when journalists come under attack, they get legal support. We raised quite a lot of money and we keep working on it. I know that the current Foreign Secretary is enthusiastic and energetic about it.
The Justice Secretary will know, however, that it is not just oligarchs who do that. For example, Sienna Miller said that she had to stop her case against the News Corp newspapers in December because she could not afford to continue to take the case to court. Will the legislation cover not just the oligarchs who desperately need looking at but anyone who seeks to use the law to silence the truth?
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.