Treasurer Joe Hockey's defamation case against Fairfax Media was an "unmitigated disaster" for him and the publisher should not be forced to bear the bulk of his legal costs, its lawyers have told the Federal Court.

Mr Hockey and Fairfax are at loggerheads over who should pick up the bill for his costly defamation battle, which resulted in a partial victory for the Treasurer and a damages payout of $200,000.

Joe Hockey arrives at court during his defamation case in March. Credit:Dominic Lorrimer

At a hearing on costs on Tuesday, Fairfax's barrister Sandy Dawson told Justice Richard White the publisher was the "overwhelming winner" of the case and should not be forced to pay the lion's share of Mr Hockey's costs.

Asked on Tuesday if he would appeal the decision, Mr Hockey said: "The first matter is still before the court as we speak, so I'm not going to comment until it's all over and I'll have something to say and that'll be the end of it.