Expelled MP Moira Deeming launched court defamation action against John Pesutto over comments about her attending a 2023 Let Women Speak rally that was gatecrashed by a group of masked men who performed the Nazi salute.
A 70-minute audio recording that contradicts his affidavit about what happened in a key meeting between senior party leaders and Ms Deeming emerged one week before the trial, her barrister Sue Chrysanthou SC said.
She alleged Mr Pesutto, who is a lawyer, did not tell his counsel that senior Liberal David Southwick had the recording of the meeting, which is due to be played in court on Tuesday.
"Knowing there was a recording and not mention it, not provide it to his lawyers, it's very strange conduct," Ms Chrysanthou told the Federal Court on Monday.
Several Liberal politicians will give evidence in the three-week trial including Mr Southwick, current Victorian Liberal MP Renee Heath, former MP Matt Bach and federal senator Sarah Henderson.
A diagram submitted to the court showed five different groups of activists and protesters, who support various causes, were around parliament on the day of the Let Women Speak rally.
Sue Chrysanthou said Moira Deeming didn't see anyone giving Nazi salutes until police led men away. (Con Chronis/AAP PHOTOS)
Ms Chrysanthou said her client did not see anyone performing a Nazi salute until a group of men, who had nothing to with her rally, were escorted away by police.
"Really all those men did in connection with my client was interfere with a group of women," the barrister said.
She claimed Mr Pesutto then went on "quite the roadshow to defame my client" in subsequent media interviews about the events outside parliament and he launched a "campaign of destruction".
Ms Deeming previously had such a good reputation she was chosen as party whip, Ms Chrysanthou said, before Mr Pesutto "tarred her with the Nazi brush".
Multiple text messages and emails between Liberal staffers and politicians were read out in court, including from Mr Pesutto's chief of staff Louise Staley who said he should "consider expelling" Ms Deeming on the evening of the rally.
"I think we might need to discuss Moira. Do we really think her misjudgment, and worse, won't keep hurting us?" Mr Pesutto texted Mr Southwick.
Ms Chrysanthou previously represented broadcaster Lisa Wilkinson in Bruce Lehrmann's high-profile case against Network Ten earlier in the year.
John Pesutto arrived at court holding hands with his wife Betty. (Con Chronis/AAP PHOTOS)
Mr Pesutto arrived at court holding hands with his wife, Betty, along with his barrister Matt Collins KC, who represented Network Ten in the same civil case.
Ms Deeming was initially suspended then expelled from the Liberal Party before becoming an independent in parliament.
Mediation between her and Mr Pesutto broke down in 2023 over the former Liberal MP's demand to return to the party room without conditions.
Mr Pesutto denies wrongdoing and previously reached settlements with rally speaker Kellie-Jay Keen and organiser Angela Jones, issuing both women a public apology.
Mr Collins is yet to address the court and Ms Deeming is expected to give evidence on day two of the trial.
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