Former Essendon coach James Hird has lost his bid to have the AFL club's insurer pay for his legal challenge against the Australian Sports Anti-Doping Authority.
In addition to paying for his own legal fees of almost $700,000, Hird may now have to cover the costs the insurance company incurred defending itself against his lawsuit.
Hird sued Chubb Insurance after the company refused to pay the legal costs of his failed challenge against the Australian Sports Anti-Doping Authority in the Federal Court in 2014, and the cost of a subsequent appeal that Hird lost in 2015.
Hird's legal team said he racked up $691,990 in legal fees while defending himself and the team when he challenged whether ASADA's probe into the use of prohibited substances at the club was lawful.
The insurer told Hird in 2015 that his ASADA trial and appeal were "not reasonably incurred" and therefore not covered by its policy.
On Tuesday Victorian Supreme Court Justice Kim Hargrave said Hird had failed to establish any of his claims and dismissed the matter.
Chubb's legal team indicated the company wanted Hird to pay its legal costs.
Justice Hargraves will hear submissions on the question of costs at a later date.
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