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Herald & Times Group to assess legal services in light of Purcell row

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By The Drum Team, Editorial

March 22, 2010 | 5 min read

Scottish media professionals have questioned whether links between Scotland’s top defamation legal firm Levy & McRae and crisis PR specialist Media House International may represent a conflict of interest.

Such is the concern that the The Herald & Times Group yesterday announced it is assessing its relationship with Levy & McRae, which provides legal cover for newspapers which include The Herald, Evening Times and Sunday Herald. As well as the Herald and Times the same firm also provides legal cover for STV and the Daily Record and Sunday Mail. The issue has come to a head following the surprise resignation of Glasgow City Council leader Steven Purcell. Seen as one of Labour’s rising stars, and a potential Scottish First Minister, his sudden resignation sparked a media frenzy North of the Border.

However despite allegations of drug abuse and widespread corruption in one of the UK’s largest local authorities, press comment has been surprisingly muted in several Scottish newspapers according to some commentators.

In an editorial the Sunday Herald expressed the same view: “There have been hints that some Scottish newspapers have pulled their punches because editors have been too close to Steven Purcell or worse, have been cowed into submission by Peter Watson (of Levy & McRae) and PR firm Media House.”

Peter Watson is the leading defamation expert in Levy & McRae. Media House International was launched by former Scottish Sun editor Jack Irvine. Both firms have been acting on the behalf of Steven Purcell.

But their relationship goes deeper than simply sharing clients. Watson holds Media House shares as a representative of a trust which has been set up for Irvine’s children. And both men own 50% each of a separate company, Tactical Response Limited, which has handled crisis PR issues in the past. For example it advised Bank of Scotland when it received a backlash for signing up TV evangelist Pat Robertson as a US partner in the late Nineties.

Based close to each other in Glasgow’s St Vincent Street, both Watson and Irvine are known as tenacious operators. Watson told The Drum's editor, Richard Draycott, by email as this article was being researched: “Publish one word about me which is untrue damaging or defamatory and I will sue you and your publication separately.”

And Irvine describes his management style in The Drum’s recent Power 100 list as: “Laid back unless you cross me, in which case you’d be better off dead.”

However, as well as Purcell, Levy & McRae and Media House currently represent, or have in the past, other clients who are now being drawn into this developing story.

Some now question whether there is a risk the independence of media reporting may be compromised. In theory Levy & McRae, or those employed by them, could be asked to give editorial legal advice relating to some clients it acts for in other capacities. The clients might also use Media House, an organisation – which through Peter Watson and Jack Irvine – Levy & McRae appears to have close links.

Last week The Drum sent a list of questions to media owners which use Levy & McRae asking about the potential for a conflict of interest arising. The Daily Record declined to comment, while STV had still to respond at the time of writing.

However, The Herald & Times Group expressed concerns themselves, and have since published a full page editorial on the subject in the Sunday Herald. Said Herald & Times Group managing director Tim Blott: “Our story touches on these very points. I should also point out that Jack Irvine has referred the Sunday Herald to the Press Complaints Commission and Peter Watson has asked for and received a clarification and a right of reply letter in the same paper – so it would be difficult to construe that either of them has undue influence over us.

“I am sure the irony of our lawyer being unhappy about a story that his firm legalled will not be lost on you, as it wasn’t on me.

“As you will see from our story this weekend, however, we are urgently reviewing our relationship with Levy & McRae in the light about our editors’ concerns about any current or future conflict of interests.”

The Sunday Herald specifically drew readers' attention to the Levy & McRae website, which seemed to state objectives which would be at odds with most media owners: “With a low profile, we aim to keep our clients off the front page and take swift and effective action where required. Being networked at the highest levels and having access to major decision makers is key to our success.”

Levy & McRae was also sent a list of 29 questions about the issue by The Drum. “You need to check facts, and then you need leg advice” was Peter Watson's response via his Blackberry.

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