This is taken from the Guardian:

Fears for journalism as publisher loses libel case
Chris Tryhorn
Thursday July 13, 2006

A leading publisher today warned of a "chilling effect" on journalism after a judge rejected its defence of qualified privilege in a libel action brought by a former police officer.

Orion Publishing and the author Graeme McLagan are to appeal against today's ruling by Mr Justice Gray that McLagan's book Bent Coppers defamed the former Flying Squad officer Michael Charman.

The judge rejected their use of the so-called Reynolds defence, under which journalists can claim the right to publish material in the public interest even if it cannot prove its accuracy or it turns out to be untrue.

Orion said in a statement today it was "extremely surprised and disappointed" that its case had failed.

"The book Bent Coppers is a serious investigative work covering matters of major public concern," the publisher said.

"If this judgment stands it will have a chilling effect on the ability of authors to write, and publishers to publish, comparable books in future. This will in turn have a damaging effect on freedom of debate in this country."

McLagan, who worked as the BBC's expert on police corruption for more than 20 years, said he was very disappointed with the ruling.

"Given this judgment, I cannot see how any serious journalist can cover matters of significant public interest without running the risk of protracted litigation where it increasingly appears that realistic protection is illusory."

The case is thought to be the first libel action in which the Reynolds defence has been deployed by a book publisher.

At a one-week trial last month, lawyers for Mr Charman argued that authors of factual books should have a higher "duty of care" to verify information than journalists working for daily newspapers.

The qualified privilege defence was developed in the judgment on the libel action by the former Irish prime minister Albert Reynolds against the Sunday Times.

But its scope has been limited in a series of subsequent rulings, including George Galloway's legal victory over the Daily Telegraph in December 2004.