Treasurer Joe Hockey's defamation case against Fairfax Media was an "unmitigated disaster" for the politician and a bid to have them foot his legal bill is manifestly unfair, the publisher says.
Mr Hockey was awarded $200,000 in damages this month after the Federal Court found Fairfax defamed him when it splashed the words "Treasurer for Sale" across a Sydney Morning Herald promotional poster and broadcast two similarly worded tweets from The Age.
Mr Hockey's barrister Bruce McClintock SC told a costs hearing on Tuesday there had been no offer by Fairfax to settle before trial and that the treasurer was ultimately awarded a substantial sum.
"He should have his costs and he should have them on an indemnity basis because he was forced to bring the proceedings," he said.
At the very least, 90 to 95 per cent of their costs should be covered, Mr McClintock said.
But Fairfax's barrister Sandy Dawson said the case "was an unmitigated disaster for Mr Hockey and a costs order should reflect that".
Mr Hockey, he submitted, had failed in claims against 12 out of 15 publications he sued on and it would be a "manifestly unfair result" if they were forced to pay the entirety of his costs on an indemnity basis.
Federal Court Justice Richard White awarded Mr Hockey damages of $120,000 for the poster and $80,000 for two similarly worded tweets but dismissed his claims over the content of the articles themselves, published in three metropolitan newspapers.
The articles said Mr Hockey gave access to a select group in return for donations to the Liberal Party via the North Sydney Forum, a fundraising organisation whose activities were not fully disclosed to election funding authorities.
Justice White also found SMH editor-in-chief Darren Goodsir, who devised the "Treasurer for Sale" headline, had been motivated by his "animus" towards Mr Hockey after the treasurer insisted on a correction and apology over an earlier story.
Rather than Fairfax footing Mr Hockey's legal bill, Mr Dawson submitted the treasurer should be paying 60 per cent of their costs.
Justice White will hand down his decision at a later date.
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