Tensions within a state Liberal party have hit boiling point, with an MP to chase senior members and colleagues for cash if a former leader cannot pay her mammoth legal bill.
Former Victorian opposition leader John Pesutto was ordered to pay more than $2.3 million in costs, on top of $315,000 in damages, to first-term MP Moira Deeming following a high-stakes defamation battle.
The Federal Court found he defamed Mrs Deeming by implying she was associated with neo-Nazis who gatecrashed a controversial Melbourne rally she attended in 2023.
Mrs Deeming was expelled from the Liberal party room but welcomed back after winning the trial, with Mr Pesutto ousted as leader.
In a letter obtained by AAP, Mrs Deeming's legal team wrote to Mr Pesutto's lawyers seeking information on his donors.
The Liberal MP said she may "have to seek cost recovery through them" and Mr Pesutto knew the legal and financial risks of not settling the case before trial.
"His defences failed, I won my case and he agreed to pay my costs last year," Mrs Deeming said in a statement.
"Time has progressed but he still has 21 days from Friday to pay.
"He also still enjoys the ongoing public support of at least three powerful multi-millionaire backers who can easily afford to pay it."
Former Victorian Liberal premiers Ted Baillieu, Jeff Kennett and Denis Napthine were among Mr Pesutto's declared donors.
Mr Pesutto declined to comment on the letter but suggested donor contributions were "relatively modest" and he wasn't sure any would come to his aid again.
"I want to do everything that I possibly can to raise the money that I owe Mrs Deeming," the Hawthorn MP said.
A GoFundMe campaign for Mr Pesutto's cause has raised more than $185,000.
He would be forced out of parliament if he declared bankruptcy, triggering a by-election in his marginal seat in Melbourne's east.
Mr Kennett told the ABC the Victorian Liberal party room was a "cesspool".
Opposition Leader Brad Battin said Mr Kennett was "entitled to his comments" and refused to detail his discussions with Mrs Deeming or Mr Pesutto.
The legal letter also named shadow frontbenchers David Southwick and Georgie Crozier among Mr Pesutto's financial backers.
Mr Southwick said the party needed to bring the dispute to an end.
"It's a line in the sand moment to ensure we don't have a by-election," he said.
There were no "hard and fast rules" about third-party costs orders, media lawyer Justin Quill said.
But if successful, the partner at major law firm Thomson Geer said it would likely only affect those who contributed substantial amounts.
"I suspect this is more a threat aimed at getting Mr Pesutto and his backers to start moving on Ms Deeming's demand for payment of the money owed to her," he told AAP.
"If they just lent him the money with no requirement that it would be paid back if he was successful, then it might be harder to obtain an order against them.
"But if there's a real link between the lending of the money and the litigation, then the chances are far higher."
