Andy Coulson, the former editor of the News of the World, can breathe a sigh of relief.  The Court of Appeal has decided he does not have to foot the bill for legal costs incurred in defending the criminal proceedings brought against him regarding the phone-hacking scandal.

Today’s decision means that legal costs for criminal allegations can be covered by employment agreements.

When Coulson’s employment with News Group Newspapers International (NGN) ended in February 2007, NGN agreed to pay for any legal costs relating to defending the allegations against him over the phone-hacking scandal.  However, in August 2011 NGN informed Coulson that they would not meet the costs of his defence.

Coulson took the matter to court.

The Court of Appeal has decided that there is no reason why a defence to criminal charges should not be covered by the indemnity clause in the severance agreement.

“There is nothing in the criminal nature of the proceedings to render it objectionable that the indemnity should apply.” Court of Appeal

The Court stated there were many instances in which criminal proceedings might be brought against a newspaper editor, therefore to exclude such proceedings from the ambit of the indemnity would deprive the indemnity of all practical use.