Hamilton v. Al Fayed

HOUSE OF LORDS

Lord Browne-Wilkinson Lord Steyn Lord Cooke of Thorndon Lord Hope of Craighead Lord Clyde

OPINIONS OF THE LORDS OF APPEAL FOR JUDGMENT

IN THE CAUSE

HAMILTON

(RESPONDENT)

v.

AL FAYED

(APPELLANT)

Judgment: 7 October 1999

Reasons: 23 March 2000

LORD BROWNE-WILKINSON

My Lords,

    This appeal raised questions of parliamentary privilege in relation to defamation proceedings brought by a Member of Parliament against a defendant who had alleged that he had corruptly solicited and received payments and benefits in kind as a reward for parliamentary services rendered. I will first set out the facts of the case, then summarise the relevant law, then consider the way in which the arguments were put forward in the courts below, and finally explain my conclusions on the case.

The Facts

    The story starts in October 1985 when the appellant Mohamed Al Fayed ("Mr. Al Fayed") employed a firm of parliamentary lobbyists, Ian Greer Associates ("I.G.A."). At that time Mr. Al Fayed was in dispute with Mr. "Tiny" Rowland over Mr. Al Fayed's takeover of the House of Fraser, including in particular Harrods. I.G.A. were engaged to conduct the lobbying operation on Mr. Al Fayed's behalf which they did most actively between 1987 and 1989. In April 1987 the Department of Trade and Industry appointed inspectors to investigate the circumstances of the takeover; the inspectors' report was published in March 1990.

    The respondent, Mr. Hamilton, used to be the Member of Parliament for Tatton. He became involved in the lobbying campaign in early November 1985 when he tabled parliamentary questions on behalf of Mr. Al Fayed. It is common ground between the parties that during the relevant period Mr. Hamilton made a number of parliamentary interventions (including tabling questions and giving his support to early day motions) attended meetings with ministers and wrote letters, in all of which activities he was pressing the views which were in Mr. Al Fayed's interests.

    Mr. Al Fayed contended that he made substantial cash payments directly to Mr. Hamilton on a number of occasions between mid-1987 and late 1989. It was Mr. Al Fayed's contention that he made these payments in return for Mr. Hamilton's services in Parliament. Mr. Al Fayed also contended that, for the same reason, he gave Harrods gift vouchers to Mr. Hamilton. Mr. Hamilton denied receiving either cash or vouchers. On the other hand, it is common ground that in September 1987 Mr. Hamilton and his wife did spend six nights at The Ritz in Paris at Mr. Al Fayed's expense. It is also common ground that Mr. Hamilton and his wife stayed for shorter periods as the guests of Mr. Al Fayed at his house in Scotland and at his Paris apartment. Although Mr. Hamilton accepted that he received these benefits he contended that they were not a reward for services rendered or to be rendered.

    On 20 October 1994 The Guardian newspaper published a front page report alleging that Mr. Al Fayed had paid Mr. Hamilton and another Member of…