John Pesutto ordered to pay Moira Deeming’s court costs in the run up to the federal election

Embattled Victorian Liberal ­leader John Pesutto faces a crippling multimillion-dollar legal bill heading into Friday’s critical party room meeting to decide whether ousted MP Moira Deeming will be invited back into the fold.

Victorian Opposition Leader John Pesutto has been ordered to pay ousted Liberal MP Moira Deeming’s defamation fight costs.

Embattled Victorian Liberal ­leader John Pesutto faces a crippling multimillion-dollar legal bill heading into Friday’s critical party room meeting to decide whether ousted MP Moira Deeming will be invited back into the fold.

In a major blow on the eve of the morning vote, the Federal Court ordered the Opposition Leader to pay most of the legal costs of the bitter defamation fight with Mrs Deeming.

Federal Court judge David O’Callaghan ruled on Thursday that Mr Pesutto was liable for legal costs incurred by Mrs Deeming before and during the marathon trial.

Justice O’Callaghan ruled Mr Pesutto had to cover the ousted Liberal MP’s costs before 11am, February 12, on an “ordinary” and on an “indemnity” basis after this time.

Legal sources said this was likely to send Mr Pesutto’s court bill skyrocketing with costs on an “ordinary” basis meaning he would be liable for between 60 and 70 per cent of the bills, but this would increase to between 90 and 95 per cent for the “indemnity” period, which included the four-week trial.

A court hearing early next year will thrash out exactly how much Mr Pesutto will have to pay but legal sources said Thursday ruling could see his costs spiral towards $2m.

Friday’s special meeting was called by anti-Pesutto forces within the parliamentary party and they need 16 votes, an absolute majority of the party room, to succeed.

Multiple Liberal sources said on Thursday they believed between 10 and 14 MPs would support the motion. If this vote were to materialise, the motion would be defeated. But if the motion is backed by 16 or more Liberal MPs then Mrs Deeming will be invited back into the party room and Mr Pesutto will come under pressure to resign as leader.

There is internal argument over what would constitute a ­majority under party rules with some arguing it would be 15 and others 16, depending on the ­interpretation.

The Federal Court found last week that Mr Pesutto had ­defamed Mrs Deeming on five occasions in the aftermath of a women’s rights rally that was gatecrashed by neo-Nazis and ordered him to pay her $315,000 in damages.

This was after Mr Pesutto led the push to have Mrs Deeming removed from the parliamentary Liberal Party amid the fallout over Mrs Deeming’s attendance at the rally in 2023.

Even if Mr Pesutto’s view is backed by a majority of MPs, it is odds-on that the battle between the two will continue, with Mrs Deeming’s supporters wanting the introduction of a proper internal complaints system to ­resolve any future crises. Mrs Deeming’s ­opponents have been trying to discredit her by criticising her voting record.

The Federal Court found Mr Pesutto defamed Mrs Deeming in five media appearances and in a document supporting her expulsion from the parliamentary party.

One senior MP backing the return of Mrs Deeming said there were 12 solid votes for the motion to succeed with up to five other MPs in the balance.

Several opposed to the motion and backing Mr Pesutto said there was limited support for Mrs Deeming because of the fallout in the party.

“We just want to win the ­election,’’ a senior MP said. “There is no guarantee this will stop if Moira is returned. Let’s give JP a go. If he can win a by-election then you’d have to say he is safe.’’

However, the financial fallout has also alarmed many in the party room, particularly if the costs are sky high, leaving Mr Pesutto with an insurmountable figure to repay.

It is also unclear what impact changes to Mr Pesutto’s frontbench will have on the result.

One strategy would be for him to woo potential disaffected MPs with the promise of more responsibility, which could help him hold on to the leadership.

The reshuffle is expected before Christmas. The next state election is due in November 2026.

Another Liberal MP, who is a Pesutto supporter, predicted the Deeming motion would be defeated.

“Moira wont be welcomed back into the party room on Friday ... the motion will be defeated and that should come as a surprise to no one,” the MP said.