The result is best characterised as the respondents overcoming a misconceived claim in relation to a broadcast because they were able to prove at trial the substantial truth of what the contemporaneous material demonstrates they considered to be the less substantial allegation made in the broadcast.
The primary judge made findings against all parties. Notwithstanding judgment in the respondents' favour, aspects of their case failed, including in relation to his Honour's consideration of the justification defence. All parties now claim the primary judgment contains errors. The appellant alleges several errors, with the respondents conceding he has arguable grounds. The respondents each allege further errors (particularly Ms Wilkinson (see [47])), including in relation to the finding of justification. That the respondents do so by raising notices of contention rather than a cross-appeal does not alter the character of the allegations in the notices, even though they do not fall for determination unless the appellant establishes his appeal.
In all the circumstances, I do not accept the respondents' submissions that there is no public interest, in the relevant sense, in the appeal.
Sixth, as Ms Wilkinson recognised, this application is in a context where the appellant has a right of appeal: FCA Act s 24(1). See also HBSY v Lewis [2024] HCA 35 at [98]. In that circumstance, the appellate process is a fundamental aspect of the administration of justice.
As the appellant essentially submitted, the finding against him is extremely serious. Ms Wilkinson described it as a finding of criminal conduct. The impact on him if he is denied that right is self-evident. That is the likely consequence of making the order the respondents seek. This is in a context of it being accepted there are arguable grounds of appeal.
The Court's discretion must be exercised judicially, but otherwise is broad and unfettered. It is to be exercised having regard to what best serves the interests of justice.
I am conscious that the respondents will incur costs should this appeal proceed which, if any costs orders are made in their favour, will likely be unrecoverable. Nonetheless, I am not persuaded, given the considerations relevant to the particular facts and circumstances of this case, that an order for security ought to be made.
Stay of the costs order
Given the respondents accept that there are arguable grounds of appeal, the focus of the consideration of the stay application is directed to the second of the two inquiries described at [30], that is, whether the balance of convenience favours the grant of a stay.
There is no dispute that Mr Lehrmann is on Centrelink benefits and is impecunious. Network Ten accepts that Mr Lehrmann does not have the money to pay the order. Although it has commenced an enforcement process against him, as they were entitled to do, there is no basis for thinking that it will retrieve the amount owed. Network Ten accepted that proposition.
In that circumstance, it is unclear what the prejudice to the respondents is said to be if the costs order was stayed pending the appeal. Particularly given that they accept the grounds are at least arguable, and that any costs order (the basis of the bankruptcy) would be overturned if the appeal succeeds. Ultimately no prejudice was articulated by Network Ten, except that of delay in resolution of the issue. I note that the parties would incur costs in advancing the bankruptcy proceedings.
On the other hand, Mr Lehrmann would likely be declared bankrupt, with all that that entails. It would likely affect his prosecution of any appeal. That the first respondent asserts Mr Lehrmann has no ability to obtain money in any event is of no moment. If he were to succeed on appeal, the consequences on a sequestration order are unclear, although it would necessarily involve further proceedings (as the sequestration order would still stand).
In the circumstances, I am satisfied that the balance of convenience favours the granting of a stay of the costs order.
Conclusion
The respondents' application for security for costs of the appeal is not established, and accordingly the application is dismissed. The appellant's application for a stay of the costs order below is granted.
I certify that the preceding seventy-three (73) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Abraham.