Douglas was either plaintiff or defendant in several trials for civil or criminal libel. In 1913 he was charged with libelling his father-in-law. Also in 1913 he accused Arthur Ransome of libelling him in his book "Oscar Wilde: A Critical Study". He saw this trial as a weapon against his enemy Ross, not understanding that Ross would not be called to give evidence. The court found in Ransome's favour and Douglas was bankrupted by the failed libel suit. Ransome did remove the offending passages from the second edition of his book.