"It was an act of petty spite," Mr McClintock said. In that article, published on March 21, 2014, the papers said Mr Hockey repaid money to Australian Water Holdings, a company that has been the subject of an investigation by the Independent Commission Against Corruption. Treasurer Joe Hockey outside the Federal Court on Monday. Credit:Ben Rushton In fact it was the North Sydney Forum that repaid the money. The papers ran an apology the following day. Subsequent emails and text messages between Fairfax Media editors and political reporters show the decision to publish the "Treasurer for Sale" series of articles was a "calculated plan" written to "exact revenge", Mr McClintock said. In a series of text messages, Herald editor-in-chief Darren Goodsir told The Age editor-in-chief Andrew Holden that he was angry at being contacted at 2.15am by Mr Hockey's staff. "They have a f---ing hide," he said. "I feel pissed off they called me so early."

Holden replied: "The simplest approach is to dig into NSF… in that story you can run Hockey's claim he knew nothing … beyond that, f--- him. Sean Nicholls, Mark Kenny, Richard Coleman, Andrew Holden and Darren Goodsir from Fairfax Media arrive at court today. They are joined by Fairfax solicitor Leanne Norman. Credit:Ben Rushton "Amazing they freeze us out and then think they have the relationship that allows them to call in the middle of the night." Goodsir said: "Are we not better to have a red hot go at the issue next week, and really go for it … after the day we've had, I ain't going to run this – but am more than keen to develop a North Sydney Forum plan for next week." He instructed Herald state political editor Sean Nicholls to dig into the North Sydney Forum.

On March 27, Goodsir wrote: "F---ing Brilliant … given what Andrew and I endured last week with Hockey, I want to have this nailed to the cross in more ways than one … keep digging Sean… I have long dreamed (well, only since last Friday), of a headline that screams: Sloppy Joe! I think we are not far off, but perhaps even more serious than that." Mr Hockey claims that, as a result of the articles, he has been "greatly injured, shunned and avoided and his reputation has been and will be bought into disrepute, odium, ridicule and contempt". He says Fairfax Media's "over sensational, extravagant and unfair presentation" of the articles indicated an "intent to injure" him. Mr McClintock told the court that Mr Hockey had called Fairfax Media chief executive Greg Hywood over the March 21 article. He said Mr Hywood replied: "Be thankful you are getting what you are [an apology]."

Mr McClintock said Mr Hywood warned Mr Hockey to "be careful" that if the matter went to court "you are not another Craig Thomson". He said it appeared the publication of the articles was timed to be just before Mr Hockey handed down his first budget and that they remain online despite there not being a contention by Fairfax Media that what was published is true. Mr McClintock said the placard (poster) and headline "Treasurer for Sale" clearly accused Mr Hockey of corruption. "There is no innocent explanation for those words," he said. "Could there be a more serious allegation made against the Treasurer of Australia?"

Mr McClintock said that, when Mr Hockey first saw the articles, he was "angry and upset". The treasurer spoke to many people that day, and most said their reaction to the article was that it was accusing him of corruption. Mr McClintock said a tweet by former Liberal PM Malcolm Fraser was an example of the way the publication was interpreted by readers. Mr Fraser's tweet said in part: "Treasurer for sale: Joe Hockey offers privileged access. Using Ministerial office for fund raising corrupt." It contained a link to the original story. Mr McClintock said Australians expected their elected representatives to have broad shoulders. "In the rough and tumble of political life, harsh things are going to be said, even false things," Mr McClintock said. "There are some things, however, no politician could allow to pass unchallenged."

Mr McClintock said his client's reputation was "spotless" and there could be no more serious allegation than a claim a person was corrupt. He is claiming damages, including aggravated damages, interest and costs, although the amount of damages is not specified. Fairfax Media says it had no intention of implying that Mr Hockey was prepared to accept bribes and that Goodsir did not equate the headline "Treasurer for Sale" with corruption. The hearing continues.