Former Liberal leader John Pesutto has been ordered to pay $2.3 million in legal costs after being found liable for defaming first-term MP Moira Deeming. This ruling followed a December decision by Federal Court Justice David O’Callaghan, which established that Pesutto had implied Deeming’s association with neo-Nazi groups at a controversial Melbourne rally she attended. In addition to the costs, Pesutto was previously ordered to pay Deeming $315,000 for damages related to the defamation.
Justice Legge clarified that the purpose of a cost order is not to penalise the unsuccessful party but rather to compensate the winning party for reasonable legal expenses incurred. She indicated that any financial support Deeming received to cover her legal fees did not affect her entitlement to the awarded costs.
The substantial size of the costs order has raised concerns regarding Pesutto’s financial capability to comply, particularly regarding the implications if he were to declare bankruptcy and his eligibility to serve as an MP. Pesutto’s barrister, Daryl Williams KC, sought a 21 to 28-day stay on the payment to explore options for an appeal against the decision, a request opposed by Deeming’s legal team. The court is expected to address this matter in a session later today.
Reports suggest that Pesutto is in talks with the Cormack Foundation—a significant financial backer of the Liberal Party—regarding assistance for his legal fees. Following the verdict, Pesutto lost his leadership role during a party spill, while Deeming was reintegrated into her party faction.
Brad Battin, Pesutto’s successor, has stated that the party is not preparing for a by-election in Hawthorn, asserting that it is up to the party’s secretariat to determine whether to assist Pesutto financially. He remarked that there is currently no immediate need for a new candidate and expressed hope that Pesutto would remain the member for Hawthorn in the next state election. However, Battin faced internal criticism earlier this year for appointing Deeming as his representative for the western suburbs while she continues her legal dispute with Pesutto.