Pesutto hit with MASSIVE legal costs after new court ruling
Victorian Liberal leader faces financial and political fallout as he prepares to front a special party room meeting called to reinstate Deeming.
Embattled Victorian Liberal leader John Pesutto has been ordered by the Federal Court to pay the majority of legal costs in his defamation battle with Moira Deeming, leaving him with a crippling multimillion-dollar bill.
In a significant blow to the opposition leader, Federal Court judge David O’Callaghan ruled on Thursday that Pesutto was liable for legal costs incurred by Deeming both before and during the lengthy trial.
The ruling determined that Pesutto must cover the costs on both an "ordinary" and "indemnity" basis, with the latter period covering the four-week trial.
Legal experts indicated that this decision would likely escalate Pesutto's financial burden. Under the "ordinary" basis, Pesutto is liable for approximately 60 to 70 per cent of the costs, but this increases to between 90 and 95 per cent for the "indemnity" period. Sources within the legal community have suggested that the total cost could soar into the millions.
It’s inexplicable to me that the Victorian parliamentary Liberal Party would not re-admit Moira Deeming, given that she was expelled on the basis of a lie. Good on @BradBattinMP for seeing the obvious https://t.co/yva9RkbWG0
— Tony Abbott (@HonTonyAbbott) December 19, 2024
This financial setback comes just as Liberal MPs are set to vote on a motion to allow Deeming back into the party room. A special meeting has been called by anti-Pesutto forces within the party, with 16 votes needed for the motion to pass. If successful, Deeming would be reinstated, putting further pressure on Pesutto’s leadership.
Liberal sources said that between 10 and 14 MPs are expected to support the motion, which would likely result in its defeat if the numbers hold. However, if the motion passes, Deeming will return, and Pesutto’s position as leader will be jeopardised.
The Federal Court had previously found that Pesutto defamed Deeming on five occasions following her involvement in a controversial rally in 2023, where neo-Nazis disrupted a women's rights event she attended. Pesutto was ordered to pay Deeming $315,000 in damages for these defamatory statements.
Even if Pesutto retains the support of most MPs, the conflict between the two is expected to continue, with Deeming's supporters advocating for a formal internal complaints system within the party.
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