Roberts-Smith’s employer at the time,Seven Network,funded the former Special Air Service soldier’s case againstThe Sydney Morning Herald andThe Age under a loan agreement from 2018,before Stokes’ private company,Australian Capital Equity,took over the loan on June 24,2020,and paid out his existing debt to Seven.
Nine,the owner of the mastheads,is ultimately seeking a court order forcing ACE,and potentially also the Seven Network,to pay the costs of the defamation litigation. The combined costs are estimated at $25 million.
As part of its application for a third-party costs order,Nine is seeking to show ACE and Seven controlled the litigation. Nine wants to view documents,including emails and text messages,between the Seven parties and Roberts-Smith and his lawyers.
Seven employed Roberts-Smith as general manager of its Queensland operations. He took leave from his position ahead of the defamation trial and resigned on June 2,a day afterBesanko dismissed his lawsuit against theHerald andThe Age. Roberts-Smithhas lodged an appeal against that decision and is seeking to have his findings overturned.
Justin Williams,SC,for the Seven parties including Stokes and McWilliam,said at a hearing in the Federal Court on Friday that “earlier this week my clients filed an application for leave to appeal[the] ... judgment dismissing their application to set aside the subpoenas that had been issued to them” by Nine.
The Seven parties asked Besanko to suspend orders requiring the production of documents at specific intervals ahead of the final costs hearing on October 26 and 27.