NoW publisher admits liability for hacking into phones of eight public figures and offers to set up compensation fund

News International is to apologise and offer to pay damages to eight News of the World phone-hacking victims who are currently suing the paper, including actor Sienna Miller, former culture secretary Tessa Jowell and former Sky Sports commentator Andy Gray.

In one of the most dramatic apologies in the history of Fleet Street, Rupert Murdoch's News International said its previous inquiries into phone hacking were "not sufficiently robust" and issued an "unreserved apology" for the fact hacking took place at the News of the World.

The others who will be offered apologies and damages are Jowell's former husband David Mills, football agent Sky Andrew, publicist Nicola Phillips, Joan Hammell, an former aide to former deputy prime minister John Prescott, and interior designer Kelly Hoppen. News International will offer to pay damages and legal fees.

In the Hoppen case, News International is admitting her phone was hacked on several occasions from 2004 to 2006. It still contests her claim that her phone was hacked in 2009.

News International is likely to offer to settle more cases. A total of 24 people have begun legal actions but the company believes that in many of the cases too little evidence has so far been produced to judge whether or not it was culpable. Others taking legal action including actors Steve Coogan and Leslie Ash.

It will propose next week to Justice Vos, the high court judge in charge of all the hacking cases, that all the cases should be heard together.

The publisher said: "Following an extensive internal investigation and disclosures through civil legal cases, News International has decided to approach some civil litigants with an unreserved apology and an admission of liability in cases meeting specific criteria.

"We have also asked our lawyers to establish a compensation scheme with a view to dealing with justifiable claims fairly and efficiently."

It added: "We will, however, continue to contest cases that we believe are without merit or where we are not responsible."

No executives are expected to resign as a result of the apology.

Charlotte Harris, a media lawyer at Mishcon de Reya, which represents agent Sky Andrew, said her firm will be considering whether to accept News International's offer of damages after taking advice from clients. She added: "An admission from the News of the World is something we've been working towards for years now. They persisted with their 'one rogue' defence for far too long.

"It was clear for a very long time that the practice of phone hacking was rife and that the News of the World should take responsibility. I hope these apologies do not come at the cost of finding out precisely what happened and who was responsible for covering it up."

The Guardian revealed in July 2009 that News International had made secret payments totalling £1m to settle cases involving three people including Gordon Taylor, chief executive of the PFA.

News International claimed hacking at the paper was carried out by a "rogue reporter", former royal editor Clive Goodman. He was jailed in January 2007 along with private investigator Glenn Mulcaire for illegally intercepting voicemail messages left on mobile phones belonging to members of the royal household.

Andrew Neil, a former Murdoch executive and former Sunday Times editor, told BBC News: "This is one of the most embarrassing apologies I've ever seen from a major British corporation.

"I don't think NI had anywhere else to go. The evidence was piling up against them. It may cost them a lot more than they think. There are plenty of other people involved. They are trying to close it down with their chequebook but I don't think they're going to succeed."

He added that settling civil actions would have no bearing on the criminal investigation currently being carried out by the Metropolitan police.

Solicitor Mark Lewis said none of the clients he represents have heard from News International. "No deals have been done and no apologies have been received yet."

He described News International's admission as "a responsible step in the right direction ... But it's a step that [they] have been forced to take ... It's still early days to work out what will be paid ... and who the victims are. It will improve tabloid journalism and it will stop people using cheap tricks to find things out."

Tom Watson, the Labour MP for West Bromwich East, said: "One of the biggest media organisations in the world has been brought to its knees in the courts." But he added: "I think we need all the facts out there."

The only reason they are offering to apologise now is because 14 civil litigant cases are currently going though the courts."

They should apologise to their readers. I would like to hear from Rupert Murdoch".

He said Murdoch should apologise for the manner in which the News of the World obtained their stories and root out the executives and reporters who were responsible for phone hacking."

Referring to the new police inquiry which began in January, Watson added: "The new investigation team are clearly doing a more thorough job [than the original 2006 inquiry] but there are still lots of loose ends in this."

He said: "News International won newspaper on the year in 2002, 2003, 2004 and 2005, when we know that phone hacking was going on. They subverted journalist. They undermined out democracy."

Keith Vaz MP, who chairs the home affairs select committee, said: "This is a step forward by those who don't want to spend entire days and months of their lives in court." He added that it would not prevent the police investigation continuing, however.

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