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Sunday, May 18, 2025
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Legal Costs Mount for Former Victorian Liberal Leader Following Defamation Case
John Pesutto faces $2.3 million in costs after defamation ruling, prompting speculation about a potential by-election.
John Pesutto, the former leader of the Victorian Liberal Party, has been ordered to pay approximately $2.3 million in legal costs following a defamation ruling related to first-term MP Moira Deeming.
In December, Federal Court Justice David O'Callaghan found that Pesutto had defamed Deeming by suggesting her links to neo-Nazis at a controversial Melbourne rally she attended.
As part of the ruling, Pesutto was instructed to pay $315,000 in damages to Deeming, in addition to her extensive legal costs, which totaled $2,308,873.
Legal representatives for Deeming, including barrister Sue Chrysanthou SC, are also advocating for Pesutto to cover her legal fees incurred during the costs hearings.
The sizable financial burden has raised concerns within the Liberal Party regarding Pesutto’s ability to meet the payment obligations, particularly since members of the Victorian Parliament are disqualified from serving if they declare bankruptcy.
Pesutto's latest financial disclosure indicates that he possesses only his residential property in Camberwell and lacks other investment assets or additional income sources.
His annual salary has decreased significantly from approximately $378,000 to $205,000 following his resignation as party leader in late December.
Notably, former Victorian Liberal premiers Ted Baillieu, Jeff Kennett, and Denis Napthine were among those who contributed financially to Pesutto's legal defense.
In a public statement, Pesutto expressed his determination to continue in his role as an MP, highlighting his gratitude for community support.
"I am hopeful with this support that I will be able to fulfill these obligations and continue serving the people of Victoria," he stated.
Reports suggest that Pesutto has engaged in talks with the Cormack Foundation, a significant investment group affiliated with the Liberal Party, in an attempt to secure financial assistance for his legal costs.
Premier Brad Battin remarked that it would be up to the party's secretariat to consider whether to offer financial help to Pesutto and noted that the party is not currently preparing for a potential by-election in the Hawthorn constituency.
Battin characterized discussions on the matter as speculative, stating, "It's a bit early to pre-empt this," and reaffirmed his desire to see Pesutto remain in his position for the next election.
In December, Federal Court Justice David O'Callaghan found that Pesutto had defamed Deeming by suggesting her links to neo-Nazis at a controversial Melbourne rally she attended.
As part of the ruling, Pesutto was instructed to pay $315,000 in damages to Deeming, in addition to her extensive legal costs, which totaled $2,308,873.
Legal representatives for Deeming, including barrister Sue Chrysanthou SC, are also advocating for Pesutto to cover her legal fees incurred during the costs hearings.
The sizable financial burden has raised concerns within the Liberal Party regarding Pesutto’s ability to meet the payment obligations, particularly since members of the Victorian Parliament are disqualified from serving if they declare bankruptcy.
Pesutto's latest financial disclosure indicates that he possesses only his residential property in Camberwell and lacks other investment assets or additional income sources.
His annual salary has decreased significantly from approximately $378,000 to $205,000 following his resignation as party leader in late December.
Notably, former Victorian Liberal premiers Ted Baillieu, Jeff Kennett, and Denis Napthine were among those who contributed financially to Pesutto's legal defense.
In a public statement, Pesutto expressed his determination to continue in his role as an MP, highlighting his gratitude for community support.
"I am hopeful with this support that I will be able to fulfill these obligations and continue serving the people of Victoria," he stated.
Reports suggest that Pesutto has engaged in talks with the Cormack Foundation, a significant investment group affiliated with the Liberal Party, in an attempt to secure financial assistance for his legal costs.
Premier Brad Battin remarked that it would be up to the party's secretariat to consider whether to offer financial help to Pesutto and noted that the party is not currently preparing for a potential by-election in the Hawthorn constituency.
Battin characterized discussions on the matter as speculative, stating, "It's a bit early to pre-empt this," and reaffirmed his desire to see Pesutto remain in his position for the next election.
