Bruce Lehrmann has been forced to reveal documents showing whether or not a secret financial backer was bankrolling his multimillion-dollar defamation case.
Justice Michael Lee presided over the hearing on Wednesday after Network Ten issued legal demands to probe if any third party was bankrolling the case.
Last month, Justice Lee found that Mr Lehrmann raped Brittany Higgins, based on the balance of probabilities in the civil case.
But his legal team has now revealed there was a no win-no fee agreement in place which means his lawyers will not get paid.
The total cost of the defamation trial could rise to $10 million in total.
But to date, Mr Lehrmann has never paid a dollar for his own legal team.
In relation to a third party agreement involving a secret financial backer, his legal team said there was none.
“Your Honour, there are no documents to produce, in that we read that paragraph as requiring production of any agreement by a third party to pay the applicant’s costs,’’ his lawyer Paul Svilans told the court.
“However, there is none such agreement.”
The only cost agreement was on a no win-no fee basis.
“There is only a cost agreement between my firm and the applicant. That agreement makes no reference to any third party. I have a copy here and I’m happy to produce it to your honour to have a look at if you’re honour is minded to,’’ Mr Svilans said.
Justice Lee said it appeared from the document there was no secret backer.
“So, it was a conditional costs agreement whereby there’s no obligation to pay the amount of costs in the event (of a loss),’’ Justice Lee said.
“I intend to deliver judgment in respect to the cost issues at 2:15pm on Friday.
“There’s been a lot of costs rendered, but they’re not recoverable, because Mr Lehrmann..lost. And there’s no third party agreement to pay costs.”
Mr Lehrmann was previously granted a time extension to launch an appeal against the decision, with the new deadline being May 31.
‘Bankruptcy’ a possibility for Bruce Lehrmann
Justice Michael Lee has raised the prospect that Bruce Lehrmann will be unable to pay Ten’s $5 million legal costs and will be forced into bankruptcy.
If he is forced into bankruptcy it could also have an impact on the former Liberal staffer’s capacity to appeal the judgment he raped Brittany Higgins, because strict rules apply to appeals that can involve evidence of the plaintiff’s financial capacity to pay legal costs that were not applied during the original civil trial.
News.com.au has previously revealed that Mr Lehrmann has engaged a noted appeals specialist Guy Reynolds SC to examine the judgment.
During a legal costs hearing in Sydney, Ten’s barrister Matt Collins KC raised concerns that much of the legal arguments were “academic” because Mr Lehrmann will not be able to pay the costs that are estimated to be between $5 million and $6 million.
“Alternatively, someone has to go and bankrupt Mr Lehrmann or do something like that,’’ Dr Collins said.
Justice Lee also discussed how Lisa Wilkinson should get her legal bills paid for by Ten, following her court victory on that issue.
“She’s entitled to get a cheque from Network 10 prior to waiting to see whether or not Mr Lehrmann comes up with any money or he’s placed in a bankruptcy,’’ Justice Lee said.