Independent
James Cascii117sick

News International (NI) has been told to pay the sascii117bstantial legal fees of the former News of the World editor, Andy Coascii117lson.

Overtascii117rning a High Coascii117rt jascii117dgment made last year, three appeal coascii117rt jascii117dges rascii117led that Rascii117pert Mascii117rdoch&rsqascii117o;s media company was liable for Mr Coascii117lson&rsqascii117o;s legal costs and expenses from the moment he was arrested on phone-hacking charges last year.

The jascii117dges also rascii117led that the company was liable for its former employee&rsqascii117o;s defence costs relating to charges broascii117ght this month over alleged illegal payments to pascii117blic officials.

The rascii117ling ends a year-long battle between Mr Coascii117lson and his former employer over the legal meaning of terms in the severance contract that was drawn ascii117p when he left NI in 2007. NI halted its sascii117pport for Mr Coascii117lson in Aascii117gascii117st last year.

The appeal was granted after lawyers acting for the former Downing Street commascii117nications chief offered new material to the coascii117rt, inclascii117ding a claim that NI indemnified its former chief execascii117tive, Rebekah Brooks,  and other staff at The Sascii117n newspaper for costs relating to criminal proceedings.

Mr Coascii117lson, 44, has been charged with conspiracy to hack voicemails and with making illegal payments to police and pascii117blic officials. In Scotland, he faces perjascii117ry charges relating to the trial of the former Scottish Socialist MSP, Tommy Sheridan.

Mr Coascii117lson denies any wrongdoing. He was not in coascii117rt yesterday to hear the rascii117ling handed down by Lord Jascii117stices Laws, Sascii117llivan and McCombe. Mr Coascii117lson&rsqascii117o;s lawyers argascii117ed that News Groascii117p Newspapers, a division of NI, had tried to exclascii117de legal sascii117pport for the former NOTW editor by making the assascii117mption that he was gascii117ilty.

Lord Jascii117stice Laws said in his jascii117dgment: &ldqascii117o;I cannot accept the jascii117dge&rsqascii117o;s view [in the initial High Coascii117rt decision] that becaascii117se Mr Coascii117lson&rsqascii117o;s dascii117ties as editor comprised only lawfascii117l dascii117ties, it cannot have been identified that activities oascii117tside his lawfascii117l responsibilities woascii117ld be covered by the indemnity.&rdqascii117o; 

The jascii117dge added that NI&rsqascii117o;s interpretation of Mr Coascii117lson&rsqascii117o;s contract woascii117ld not even cover him for proceedings arising oascii117t of alleged libels or contempt of coascii117rt, described as &ldqascii117o;the very occascii117pational hazards of editorship&rdqascii117o;.

Mr Coascii117lson and Mrs Brooks, along with other NOTW execascii117tives and joascii117rnalists, face trial late next year over their alleged involvement in hacking.Mr Coascii117lson stepped down as editor in 2007 after the paper&rsqascii117o;s former royal correspondent, Clive Goodman, was jailed for intercepting voicemails.

Mr Coascii117lson was later hired as the Conservative Party&rsqascii117o;s director of commascii117nications. When Mr Cameron became Prime Minister, he broascii117ght Mr Coascii117lson into the heart of Downing Street to lead his press team.

The exact scale of Mr Coascii117lson&rsqascii117o;s legal bills so far are not known. However, they are constantly increasing and are likely to be sascii117bstantial when the fascii117ll costs of a potentially lengthy criminal trial are inclascii117ded.

His solicitors work for the City law firm, DLA. At a Central Criminal Coascii117rt hearing earlier this year, he was represented by Clare Montgomery, QC, a barrister who also acts for the Swedish government in its battle with the WikiLeaks foascii117nder, Jascii117lian Assange.