They don't necessarily have to consult with the celebrity.
If something appears in the paper and the celeb doesn't sue,
it becomes part of the public record, and in that case,
E! has to give acknowledgement to the source of the news,
not the celeb him-/herself.
And if the celeb goes to court and is involved in a lengthy trial,
they can refer to the court records without paying anyone.
(If there is footage of the trial, like the OJ Simpson case,
then they have to make an arrangement with ABC or CNN