Earl Charles Spencer's estranged wife wins big in explosive privacy case

Earl Charles Spencer's estranged wife has delivered a major blow to Prince Harry's uncle as she sttled an explosive privacy case involving his new partner.

Countess Karen Spencer accepted a Part 36 offer as part of ongoing divorce proceedings to settle the case.

A privacy lawsuit brought by Earl Spencer’s partner Catrine Jarman against Countess Karen Spencer has concluded after Spence's estranged wife accepted a Part 36 offer to settle the claim.

Norwegian archaeologist Jarman, 43, launched legal action against the countess in October 2024 over misuse of private information after Countess allegedly revealed her multiple sclerosis diagnosis without permission.

The settlement was reached between Ms Jarman and the countess alone.

Earl Spencer is required to indemnify his estranged wife only for the sums she must pay because she accepted the Part 36 offer, including the £4,500 damages to Ms Jarman, and for the countess’s own legal costs in the King’s Bench proceedings.

What is indemnity?

The indemnity is an internal financial arrangement within the divorce arbitration and does not make the earl liable for the overall costs of the privacy litigation.

A High Court judgement released on Monday confirmed this position, noting that the arbitrator had anticipated the countess would accept the Part 36 offer on the understanding that her husband would reimburse her for the specific expenses arising from her acceptance of that offer.

What is Part 36 offer?

A Part 36 offer is a formal, written settlement proposal in English civil litigation under the Civil Procedure Rules (CPR), designed to encourage early resolution by creating significant financial (cost and interest) penalties for the party who rejects a reasonable offer and then achieves a worse outcome at trial.

The offer is a tactical tool for claimants or defendants, made at any stage, to resolve all or part of a dispute, specifying a minimum 21-day acceptance period. It can be used in both money and non-money claims, with strict rules to qualify for the cost consequences.

The countess, 53, rejected all allegations of wrongdoing throughout the proceedings, maintaining that any mention of Jarman’s health was “entirely legitimate and justified”

In a statement, Jarman told GB News: "I brought my privacy claim after my private medical information was shared without my consent.

A spokesman for Countess Spencer said: “Countess Spencer confirms that the legal proceedings brought against her by Cat Jarman have been resolved in an agreed settlement.

"There was no admission of liability or wrongdoing and Earl Spencer has been ordered to pay the legal costs, which are in excess of £2million together with £4,500 in damages to be paid to his girlfriend Cat Jarman."