A high-stakes legal battle continues within the tattered Victorian Liberal ranks, as Moira Deeming threatens court action against several influential party figures — including former premiers Jeff Kennett, Ted Baillieu and Denis Napthine — over an unpaid $2.3 million legal bill.

In a letter dated 21 May and obtained by the Herald Sun, Deeming’s lawyers claim that John Pesutto, who was found by the Federal Court to have defamed her, may not be able to pay the court-ordered costs, and that his donors could be liable.

“He is and was throughout the proceedings a man of straw,” the letter from Patrick George of Giles/George reads.

The document argues that several 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 names key Liberal identities as potential financial backers of Pesutto’s failed defence, which could leave them exposed to “non-party costs orders” if the $2.3 million is not paid by Friday.

To clarify-
👉🏻My goal is not to bankrupt anyone, but rather to repay the $2.4m debt I incurred fighting to clear my name of heinous, false accusations that Mr Pesutto refused to retract or apologise for.
👉🏻My lawyers are following court ordered dates and processes regarding the…

— Moira Deeming MP (@MoiraDeemingMP) May 25, 2025

The letter specifically questions how much Kennett and Napthine contributed, pointing to a lack of transparency in Pesutto’s 2025 parliamentary return. Donations under $600 are not required to be disclosed, and this threshold may have been used to avoid public scrutiny.

Other named contributors include sitting MPs David Southwick and Georgie Crozier, Baillieu, and party affiliates Xavier Boffa, Jason Leap, Margaret Fitzherbert and Gillelosa Pty Ltd.

The legal team is seeking permission from the Federal Court to subpoena communications between Pesutto and his donors, stating: “Without those gifts, Mr Pesutto would not have been able to defend the proceedings... particularly in the exhaustive manner he did.”

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