Spencer lawyers claim privacy win

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Mr Justice Munby had ruled yesterday against a blanket ban on reporting of the case to conform with new public policy on opening up the Family Division to the press.

But when heavyweight divorce lawyers Nicholas Mostyn QC and Lewis Marks QC arrived in court this morning, they asked the judge for an adjournment and told him that the case might not be back in court again.

If the parties reach an agreed settlement, it will be confidential and not read out in court when the judge approves it. Mr Mostyn, with both teams of lawyers laughing, invited the judge to compel reporters in court to stay for his next Family Division case which he said could involve "someone from Milton Keynes". Yesterday Mr Mostyn and Mr Marks had been less successful when they argued that the only reason the media were interested in the case was because of who their clients were.

Mr Justice Munby, giving reasons for refusing a blanket ban, said: "That is dangerous territory because it potentially gives privilege to one group in the community over and above others."

Both teams had left court yesterday preparing injunctions designed to restrict reporting of the case. But when the case resumed there was a joint application for an adjournment. "It might be that we shall not have to resume the hearing at all," Mr Marks told the judge. Mr Justice Munby sat in silence for a while before saying: "I am slightly puzzled."

He said some might see what they were asking "as an attempt to circumvent the procedure laid down in the new rules" for media coverage.

Neither the 44-year-old earl, brother of Princess Diana, nor his former wife, 41, were in court today.

Details of their settlement will not be made public unless there is a breakdown in negotiations outside court and a further hearing is made necessary.