The law firm has stated that the BBC and Guardian owed a duty of confidence to Appleby and misused the information.
The BBC and Guardian are understood to be the only two media organisations worldwide facing legal action from the law firm.
A leading lawyer has warned that the flood gates for so-called “hacktivists” will open if Appleby loses its case.
BBC and Guardian’s defence
A letter from the BBC to solicitors acting for Appleby, dated 28 November 2017, stated that the documents reveal widespread use by wealth individuals and business entities of aggressive tax avoidance schemes and, in some instances, potential tax evasion”.
It states that it is in the public interest that the information was published to contribute to the continuing political conversation about tax; including the ethics and propriety of the offshore finance industry.
However, to date, none of the Paradise Papers’ revelations have exposed any clear criminal behaviour.
The defendants say that the remedies Appleby is seeking would have far-reaching and chilling effects on journalism. It could also lead to UK media organisations being excluded from access to future data releases by the ICIJ.
Catrin Evans QC, acting on behalf of the BBC, argued on 16 January that the activities which Appleby alleges constitute a misuse of information; namely accessing, reading, receiving, reviewing, extracting and copying the documents, are “acts of journalism, par excellence”.
No date was provided in the court documents for when the case will be heard.
Libel case
It was revealed, however, that the BBC is the subject of a libel claim by a person whose business affairs were features in the Panorama programme on the Paradise Papers that was broadcast on 5 November.
Justice Rose determined that, in the event the libel proceedings are commenced, the case will be brought in the Queen’s Bench Division and allocated to the Media and Communications List.
One of the demands included in the claim letter is that the BBC disclose, ahead of any hearing, any confidential leaked documents or copies in the BBC’s possession.
The broadcaster is resisting as it fears there is something in the pattern of those whose documents have been included will in some way tip Appleby off as to who the source might be, Step added.
The identity of the hacker(s) is still unknown.
