Lynn Walsh: Law suit against Militant‘ security of costs‘ ordered

[Militant No. 761, 9th August 1985, p. 4]

John Dennis, former Labour Party Student Organiser, is suing Militant over articles (20 April and 25 May 1984) on the 1984 conference of the National Organisation of Labour Students (NOLS).

If Dennis wants to continue his current libel action against Militant then he must deposit £4,000 with the High Court within 28 days. This was the outcome of a successful application by Militant for ’security of costs‘ heard on 2 August. Dennis was also ordered to pay Militant’s costs for the hearing.

Denial

Dennis denied all the detailed allegations, which he takes to refer to himself. However, his solicitors first complained to us only in July 1984 and High Court writ were not taken out until March 1985.

Dennis’s legal steps were taken, in fact, only after a decision by NULO (National Union of Labour Organisers, which is not recognised by the TUC) to sponsor his action. At their AGM at party conference on 30 September last year, NULO approved a £3,500 donation to Dennis, imposed a £10-a-head levy on its approximately 180 members, and decided to keep their support under review.

Clearly there are political motives behind NULO’s financial support, which was reaffirmed in spite of Dennis’s resignation as Labour Party Student Organiser (and consequently from NULO) which took effect in October.

Given this, Militant felt entirely justified in asking NULO to give a guarantee that they would pay its costs if Dennis proves unsuccessful. No such guarantee was forthcoming.

Militant has presented a full defence, justifying the report, which it believes will be successful.

However, it would be extremely expensive to present all this in court. Without ’security of costs‘ there would be no certainty that, even if the defence was successful, the costs would be met.

At last Friday’s hearing, heard in chambers, the court decided that, although NULO are undeniably sponsoring his action, from a legal point of view they have ’no legitimate interest‘ in Dennis’s action. Under these circumstances, it would be unfair if the defendants Militant had no assurance at all that NULO would meet their costs if Dennis lost. On the other hand, Dennis has given no evidence that he has means to pay himself. The court therefore ruled that Dennis should provide £4,000 security of costs to cover the current stage of proceedings.

If Dennis takes his case to trial, it will be open to Militant to apply for additional sums of further security.

NULO members may well be asking now how far the open-ended support for Dennis’s potentially expensive legal action can be extended.

If Dennis continues with his case, we will rigorously defend it.

By Lynn Walsh