Can Crowdfunding help with defamation claims?

Funding a defamation claim can be challenging for anyone but the most wealthy. This is why claimants are turning to crowdfunding sites such as Crowd Justice to help pay for their legal costs. 

 

Is Crowdfunding allowed for defamation cases?

In short, yes - crowdfunding is a permitted and established way for claimants or defendants to raise funds to help them pay for legal fees. 

A claimant can use the crowdfunding page to explain why they are bringing a claim for defamation, and the impact that the untrue words have had upon them.

A defendant can also use crowdfunding to try and raise funds to defend a claim for defamation. The defendant must be very careful however not to repeat statements which are potentially defamatory, and it is always sensible for a defendant to take legal advice before publishing a statement on a crowdfunding page. 

Sites such as Crowd Justice will require a fundraiser to confirm the law firm which is dealing with the proceedings for them. 

 

How much could I raise through Crowdfunding?

There is no limit to what you can raise through crowdfunding, but it is sensible to set a target to work towards. You can update your crowdfunding page at various stages of the litigation to update your supporters.

It can be difficult to persuade supports to part with their hard earned cash to support you in paying your legal fees. This is why a carefully drafted statement to accompany your crowdfunding page is vital. You can also promote your crowdfunding page yourself using various social media. 

 

Can I be penalised for funding a case using Crowdfunding?

In principle, crowdfunding is permitted for libel claims, but you should be very careful about the approach you take. A recently decided case serves as a warning to any party seeking to crowd fund in circumstances where they repeat the defamation and crave the attention of high profile contributors. 

The defamation case of Ware v French was decided at the end of 2022 and the defendant was ordered to pay the claimant £90,000 in damages. 

The defendant had accused the claimant of being a "rogue journalist" in relation to statements made about problems with anti-semitism in the Labour Party. The defendant had written an article which had been circulated amongst over 100 senior figures at the BBC, causing serious harm to the claimant's reputation. The Judge decided at an earlier hearing that these statements were untrue and defamatory. 

The defendant had crowdfunded his legal fees for his defence of the claim. The damages award was increased by the Judge, because of the high profile nature of the crowdfunding, which had attracted the attention of high profile contributors.

The claimant had sued the defendant for £40,000, but the Judge awarded the claimant an extra £50,000. The Judge was critical of the defendant's whole attitude to the libel proceedings and said that the crowd funding had exacerbated the harm caused to the claimant's reputation. 

 

Do you want to Crowd Fund a legal case?

If you have a valid claim for defamation, or a strong defence to a claim for defamation which is being brought against you, you could consider crowdfunding your legal fees. 

Samuels Solicitors works closely with organisations such as Crowd Justice to help parties crowd fund cases, without risking penalties for exacerbating harm, such as in the Ware v French case. 

If you want to bring a claim for defamation against someone, or if you want to defend a defamation claim, contact us today for a free discussion with an expert about the next steps.