Jeff Kennett, Ted Baillieu, Denis Napthine named by Moira Deeming’s lawyers as deadline looms for Pesutto’s $2.3m payday

Moira Deeming is threatening legal action against Liberal heavyweights Jeff Kennett, Ted Baillieu and Denis Napthine amid her battle over a $2.3m legal bill.

Moira Deeming has flagged legal action against some of the state’s most well-known Liberals, including three former premiers and two sitting MPs, amid her battle to force John Pesutto to hand over $2.3m in legal costs.

A bombshell letter by Mrs Deeming’s lawyers has thrust Jeff Kennett, Ted Baillieu and Denis Napthine into the firing line as the Liberal MP fights to recoup the court-ordered costs following her defamation win over the former Liberal leader.

The May 21 legal letter, sent to Mr Pesutto’s lawyers by Giles/George principal Patrick George and seen by the Herald Sun, threatens to further engulf nine Liberal Party figures in the ongoing legal saga.

It advises that because they were financially assisting Mr Pesutto they could be on the hook for “non-party costs orders” if he fails to pay the $2.3m bill by Friday.

“He is and was throughout the proceedings a man of straw,” the letter reads.

“The donors had an interest in the proceedings, whether financial or otherwise, and, our client believes, took an active part in the conduct of the proceedings.”

It seeks how much Mr Kennett or Mr Napthine have donated to Mr Pesutto’s case, noting there was “no disclosure” by Mr Pesutto in his 2025 parliamentary return of gifts.

The letter adds that this could be due to the donations coming in at under $600.

The May 21 legal letter, sent to Mr Pesutto’s lawyers by Giles/George principal Patrick George, threatens legal action against nine Liberal Party figures. Picture: Glenn Hunt

Other names listed in the letter as donors who contributed more than $600 each include senior Liberal MPs David Southwick and Georgie Crozier, former premier Ted Baillieu, Mr Pesutto’s party allies Xavier Boffa, Jason Leap and Margaret Fitzherbert, and Gillelosa Pty Ltd.

The letter states that Mrs Deeming’s lawyers have applied to the Federal Court for leave to issue subpoenas seeking communications between Mr Pesutto and the donors.

They are also seeking to obtain the “communications relating to the conduct of the defence of the proceedings”.

“Without those gifts, Mr Pesutto would not have been able to defend the proceedings or continue with his defence of the proceedings, particularly in the exhaustive manner he did,” the letter reads.

“It is clear that those contributions to his defence costs caused our client to incur significant costs in requiring her to proceed with the claim against him all the way to judgment and in doing so, defeating each of his misconceived defences.”

The letter ­estimates that Mr Pesutto could be on the hook for about $5 million, including $300,000 in damages, $2.3 million for Mrs Deeming's legal costs and to cover his own legal costs.

A bombshell letter by Mrs Deeming’s lawyers has thrust Jeff Kennett, Ted Baillieu and Denis Napthine into the firing line as the Liberal MP fights to recoup the court-ordered costs following her defamation win over the former Liberal leader. Picture: AAP

Outside parliament on Wednesday, Mr Pesutto said the donations were “well documented” but that he could “not recall” how many were over $600.

“But they were, in the scheme of things, relatively modest amounts,” he said.

“But I gratefully received them.”

Mr Pesutto refused to comment on the legal threat to the Liberal Party figures, saying he was focused on doing “everything I possibly can to raise the money that I owe”.

“I’ve got a challenge that I’m trying to meet,” he said.

Asked whether the new letter had divided the party further and if he was confident he could recover, Mr Pesutto said “absolutely”.

“I just want to resolve it as quickly as I can,” he said.

Liberal MPs also briefly weighed in, expressing their desire for the issue to be put to bed. Shadow attorney general Michael O’Brien said the letter was “bizarre” and “not helpful” to the party, while new MP for Prahran Rachel Westaway said she would like “everything to settle down”.

Former premier Ted Baillieu was listed in the letter as a donor who contributed. Picture: Fiona Byrne

It comes after the Federal Court found Mr Pesutto had defamed Mrs Deeming by incorrectly claiming she was associated with neo-Nazis after a group of white supremacists crashed a women’s march she had helped organise.

Mrs Deeming told the Herald Sun there were currently “zero” lawsuits against anyone other than Mr Pesutto.

But that she may be left with no choice but to go after his donors to recoup her costs.

“It appears he may have run the case while insolvent,” she said.

“The letter simply seeks to understand who aided him to do so, because I may have to seek cost recovery through them.”

Mrs Deeming said John, with his legal background, should have known the legal and financial risks.

“His defences failed, I won my case and he agreed to pay my costs last year,” she said.

“Time has progressed but he still has 21 days from Friday to pay.

“He also still enjoys the ongoing public support of at least 3 powerful multi-millionaire backers who can easily afford to pay it.”