Brad Battin drawn into legal action over Pesutto loan

Victorian Opposition Leader Brad Battin has been served legal papers in a case challenging the Liberal Party’s controversial loan to John Pesutto.

Victorian Opposition Leader Brad Battin has been served with legal papers by lawyers prosecuting a case against the party’s $1.55m loan to John Pesutto.

It makes Mr Battin the second consecutive leader of the Victorian Liberal Party dragged to court by a party member.

Mr Battin last week refused to be drawn on the Supreme Court matter, saying his involvement was purely “hypothetical”.

But the Herald Sun confirmed on Tuesday that he, and other members of the party’s administrative committee, had now been joined as defendants in the proceeding.

Leader of the Opposition Brad Battin is the second consecutive leader of the Victorian Liberal Party dragged to court. Picture: Nadir Kinani

The case has been brought by senior Liberal Colleen Harkin who sits on the committee with Mr Battin which approved the career-saving $1.55m loan to Mr Pesutto.

The loan was to allow him to repay his $2.3m debt to colleague Moira Deeming, avoid bankruptcy, and prevent a potentially damaging by-election in his seat of Hawthorn.

But Ms Harkin launched legal action against the decision of the administrative committee to approve the loan, saying it was invalid under the party’s constitution.

In the Supreme Court last week Justice Michael McDonald said the each of the administrative committee’s members would have to be named as defendants.

“I’m going to have to hear from the members of the Administrative Committee in order to form a view about whether or not there is a serious issue to be tried, because unless I can come to that conclusion, there’s no basis for any interlocutory relief,” he said.

MELBOURNE, AUSTRALIA - NewsWire Photos DECEMBER 27, 2024: Moira Deeming speaks to the media at Parliament House in Melbourne after being accepted back into the Liberal Party. Picture: Andrew Henshaw

Mr Pesutto paid his debt to Mrs Deeming just hours before the court action was lodged, despite his lawyers being put on notice about the pending matter.

The $2.3m is being held in trust.

Party president Phil Davis, immediate past president Greg Mirabella, and federal MP Dan Tehan are also expected to be named as defendants in the case.

Mr Davis last week claimed the controversial loan agreement would end the long-running feud between Mr Pesutto and Mrs Deeming which has plagued the party for more than two years.

Mr Pesutto was ordered to pay Mrs Deeming $2.3m in legal costs after she successfully prosecuted a defamation case against him.

It was prompted by his assertions that she had links to neo-Nazis following her attendance at a women’s rights rally on the steps of parliament in March 2023.

Mr Pesutto has already paid Mrs Deeming $315,000 in damages.

Originally published as Brad Battin drawn into legal action over Pesutto loan