Moira Deeming, John Pesutto fork out millions in legal fees ahead of defamation trial

The high-stakes defamation fight between John Pesutto and exiled MP Moira Deeming is stacking up to be financially catastrophic — insiders revealing the staggering figures spent pre-trial.

The Pesutto v Deeming case has emerged as potenitally financially catastrophic, with legal bills totalling almost $3m before trial starts. Pictures: Supplied

Staggering legal bills totalling almost $3m have been amassed in the high-stakes defamation fight between Opposition Leader John Pesutto and exiled MP Moira Deeming.

And the prospect of significant costs orders being made at the end of the stoush mean the case has emerged as not only a high-stakes political fight, but a potentially catastrophic financial one.

On the eve of the trial, sources familiar with the case said bills close to $1.5m for each party had already been incurred ahead of its start in the Federal Court on Monday.

From then eminent defamation experts Matt Collins KC, for Mr Pesutto, and Sue Chrysanthou SC, for Mrs Deeming, are expected to add at least $280,000 in fees for the anticipated 15 day hearing.

Moira Deeming and John Pesutto pose for a selfie in 2023 prior to the high-stakes defamation case. Picture: Facebook

Mr Collins is known to charge $11,000 a day for his appearances, while Ms Chrysanthou charged journalist Lisa Wilkinson $8,000 a day in the defamation action brought by disgraced political staffer Bruce Lehrmann.

In that case Lehrmann was ordered to pay $2m of the $3.7m in legal costs amassed by Network 10, while Ms Wilksinson incurred costs of $1.8m.

In a ruling last year the Federal Court warned that costs were “a very significant concern in defamation, much more than in other litigation, because of the catastrophic impact these costs have on the ordinary members of the community who find themselves caught up in litigation where the damages are small and the level of complexity high.”

If Mrs Deeming wins her case she stands to be awarded up to $478,500 in damages for non-economic loss, but the court could choose to ignore that cap if it is satisfied that an award of aggravated damages is warranted.

Aggravated damages can be awarded in excess of the cap.

Moira Deeming will have to fork out huge figures to cover some or all of John Pesutto’s legal costs if she loses the case. Picture: NCA NewsWire

If she loses, she faces the prospect of having to cover some or all of Mr Pesutto’s legal bills, particularly if he can prove she unreasonably rejected a settlement offer.

Mr Pesutto said this week he had attempted to resolve the dispute, telling a press conference: “I’ve done everything I can … I’ve exhausted all reasonable efforts to try to settle the matter.”

But that claim has been vehemently denied by sources connected to Mrs Deeming’s case who say no serious offer of settlement had ever been made.

Mr Pesutto is being sued after he accused her of having Nazi links and “conducting activities in a manner likely to bring discredit on the Parliament or the Parliamentary Party” in a bid to expel her from the party.

It was Mrs Deeming’s attendance at a Let Women Speak rally in March 2023, which was gatecrashed by neo-Nazis, which sparked moves by Mr Pesutto to force her out of the parliamentary wing.

As part of his campaign, he compiled and distributed a 15-page dossier of evidence backing his case which will be central to the defamation action.

A meeting between Mr Pesutto, his then leadership team including David Southwick, Georgie Crozier and former MP Matt Bach, and his former chief of staff Rodrigo Pintos-Lopez, will be central to the case.

That fact that publications were made that defamed Mrs Deeming has already been conceded by Mr Pesutto’s legal team.

But they are relying on a public interest defence to the comments which focuses on the honest and reasonable belief in the truth of a publication.

John Pesutto is being sued by Moira Deeming after he moved to expel her from his party. Picture: NCA NewsWire

Both Mrs Deeming and Mr Pesutto have prepared for lengthy cross examinations, each expected to last longer than a day, while a string of MPs and political staffers are also preparing for the case.

It is expected Mrs Deeming will first step into the witness box on Tuesday, while Mr Pesutto’s evidence is not expected until the second week.

Sources familiar with the case said both parties were confident ahead of trial.

However a late development in the case which is expected to be made public on Monday has boosted the confidence of Mr Pesutto’s backers.

Former premiers Jeff Kennett, Ted Baillieu and Denis Napthine have all helped fund Mr Pesutto’s case, while property developer and longstanding Liberal donor Hilton Grugeon has been identified as a key backer of Mrs Deeming.

Senior Liberal Party figures are bracing for three weeks of potentially damaging hearings and the messy fallout that could follow.

But the party is split over whether or not it will impact Mr Pesutto’s leadership, especially given his strong results in recent polls that show the Victorian Coalition well ahead of Labor on a primary vote basis.

The trial is expected to begin on Monday.