Particle.news

Download on the App Store

Lawyers lodge bankruptcy notice against John Pesutto over $2.3 million court costs

A 21-day ultimatum to pay the costs has deepened a rift in the Victorian Liberal Party over a potential rescue

Image
Image
Image

Overview

  • Moira Deeming’s lawyers filed the notice in federal court on June 2 after Pesutto missed the deadline to pay her $2.3 million in legal fees.
  • Pesutto faces automatic bankruptcy and parliamentary disqualification if he cannot settle or negotiate payment within 21 days.
  • The legal action follows a December ruling that he defamed Deeming by implying she sympathised with extremist groups, which also led to a $300,000 damages award.
  • Former premier Jeff Kennett has urged party leaders to cover Pesutto’s bill to prevent a Hawthorn by-election and maintain focus on holding the government to account.
  • The Victorian Liberal Party’s administrative committee is debating a bailout but has yet to decide, putting Pesutto’s hold on his marginal seat in jeopardy.