UPDATE: In a stunning legal development, Kerry Stokes, the chairman of Seven West Media, is now facing a staggering $13.5 million legal bill following the defamation case involving former SAS soldier Ben Roberts-Smith. The Federal Court has confirmed that this amount will cover the costs incurred by The Age and The Sydney Morning Herald, marking a significant blow for Stokes and Roberts-Smith.
On October 24, 2023, a Federal Court registrar ordered the legal costs related to the defamation trial to be set at $13.3 million, with an additional $225,000 for the assessment process, bringing the total to $13.5 million. This ruling highlights the financial repercussions stemming from Roberts-Smith’s unsuccessful legal battle against the newspapers, where he alleged defamation linked to serious accusations of war crimes.
The implications of this case are profound. Stokes initially backed Roberts-Smith’s defamation trial with private funds, reportedly covering around $15 million for Roberts-Smith’s legal team alone. Stokes agreed to cover the newspapers’ costs on an indemnity basis, which typically includes about 95% of a party’s legal expenses. This decision followed a contentious legal struggle with the Nine-owned media outlets over internal communications.
Roberts-Smith, a recipient of the Victoria Cross, launched his defamation case in 2018, claiming the articles published by the newspapers portrayed him as a war criminal and a bully. The trial, which unfolded over 110 days and involved 41 witnesses, concluded in July 2022, resulting in combined legal costs exceeding $30 million. In a landmark decision earlier this year, the Full Court upheld the newspapers’ truth defense, concluding that Roberts-Smith was involved in the murder of four unarmed Afghan prisoners during his service from 2009 to 2012.
The case took another turn when the Full Court ordered Roberts-Smith to pay legal costs associated with his appeal, which amounted to approximately $5 million. With the High Court recently denying his application for special leave to appeal, this latest financial blow adds to the mounting pressures facing Roberts-Smith.
In a further twist, The Age and The Sydney Morning Herald are pursuing a subpoena against Australia’s richest woman, Gina Rinehart, who has publicly supported Roberts-Smith. The media outlets are attempting to determine if Rinehart provided financial backing for Roberts-Smith’s appeal, which could significantly influence the ongoing legal saga.
Rinehart has not responded to inquiries regarding her involvement in funding the appeal. The subpoena seeks any documentation that could reveal financial transactions or agreements between her and Roberts-Smith concerning his legal costs. A Federal Court decision on August 28, 2023, has allowed the media outlets to serve the subpoena through alternative means due to difficulties in reaching Rinehart directly.
As the situation develops, Roberts-Smith has already deposited $910,000 into court as security for Nine’s legal costs, but the source of these funds remains unclear. The culmination of these events leaves Roberts-Smith with significant financial and reputational damage after the court’s findings against him.
The legal landscape surrounding this case continues to evolve, and further developments are expected as the ramifications of the Federal Court’s decisions unfold. Stay tuned for updates on this high-stakes legal battle that has captured national attention and will likely influence public discourse for months to come.
