Joe Hockey could be left about $650,000 out of pocket and fails in attempt to get injunction preventing Fairfax repeating claims in articles

This article is more than 5 years old

This article is more than 5 years old

Joe Hockey has declared he has “no regrets” over his decision to take Fairfax Media to court which, despite a partial win, has potentially cost him hundreds of thousands of dollars.

Fairfax has been ordered to pay 15% of the treasurer’s costs in the case in which he claimed an article headlined “Treasurer for sale” alongside tweets and posters were defamatory. Fairfax has to pay all of its costs.

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The treasurer had argued Fairfax should pay 95% of his costs in submission on 14 July, but Fairfax was aiming for Hockey to pay 60% of its legal costs. Each side is estimated to have spent about $1m in the battle.

Hockey said he had won an “unprecedented finding” against the Sydney Morning Herald’s editor-in-chief, Darren Goodsir, who the federal court found to have been motivated by “animus towards Mr Hockey”.

“After nearly 20 years in public life I took this action to stand up to malicious people intent on vilifying Australians who choose to serve in public office to make their country a better place,” Hockey said in a statement on Wednesday afternoon.

“I do not regret taking this action.”

Hockey said his job as treasurer and member for North Sydney remained his focus and pointed out the court had dismissed Fairfax’s attempt to have him pay the majority of its legal costs.

“Whilst the cost of this action has been considerable for me, my family and friends, it has been far greater for Fairfax Media,” he said. “They are clearly not ‘Independent. Always’ [a reference to Fairfax Media’s tagline].”

A Fairfax Media spokesperson said: “The costs judgment is a fair reflection of the outcome of the proceedings where Mr Hockey failed on all of the matters which were the real core of his claim.”

Hockey also lost his attempt for an injunction to prevent Fairfax Media repeating the claims in the stories.

Given Hockey’s legal bills were estimated to be $1m, the 15% in costs will give him about $150,000. Combined with his $200,000 damages payment the treasurer could be left about $650,000 out of pocket by the defamation action. The case will have cost Fairfax Media about $1.35m.

Hockey brought the case privately and is paying for it himself, his office said on Wednesday. Hockey had yet to make a statement on the decision at the time of publishing.

The Fairfax stories detailed how a fundraising body, the North Sydney Forum, offered a place at lunches and events with Hockey in exchange for membership fees of up to $22,000.



Money paid to the forum was passed on to the Liberal party as donations.

Hockey had a partial win in the case in June when the court found two tweets by the Age about the story and Sydney Morning Herald posters advertising it with the phrase “Treasurer for sale” were defamatory. However, the articles were not found to be defamatory and Hockey was awarded $200,000.

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In the submissions Fairfax’s barrister Sandy Dawson said the case had been an “unmitigated disaster” for Hockey while the treasurer counsel, Bruce McClintock SC, criticised Fairfax for not attempting a settlement before the trial.

Dawson had previously argued if Hockey was successful in the injunction it would “strike at the heart of freedom of the press”.

Justice White hypothesised such an injunction would mean Fairfax would not be able to report on any potential allegations of corruption against Hockey.

“There is not even a hint that Mr Hockey would engage in corrupt conduct but it is not unknown for respectful, reliable, responsible persons to fall from grace,” the judge said on July 14.

“I’m not suggesting Mr Hockey is likely to, but the injunction you seek would preclude the respondents from publishing that if it was to occur.”