Victoria's Liberal leader has admitted sharing settlement information with former premier Jeff Kennett to prove he was being "reasonable" ahead of a defamation trial.
John Pesutto faced a second day of questioning in the witness stand at the Federal Court in Melbourne on Wednesday, as exiled MP Moira Deeming's defamation trial against her former leader continues.
She claims Mr Pesutto defamed her in media releases, at a press conference and in interviews following her attendance at the Let Women Speak rally in March 2023.
That rally was gatecrashed by neo-Nazis who performed the Nazi salute on the steps of the state parliament.
He told the court on Wednesday he felt there was an "urgency to act to protect the party" and "sever any connection" between the Victorian Liberals and the rally, when he chose to exile Ms Deeming from the parliamentary party.
Asked whether he considered any other disciplinary action for Ms Deeming, Mr Pesutto said: "We believed expulsion was the appropriate course."
Ms Deeming's barrister, Sue Chrysanthou SC, asked Mr Pesutto about media reports regarding settlement negotiations between himself and Ms Deeming.
She showed Mr Pesutto an article with quotes from Jeff Kennett, and asked whether he had shared information about the trial and earlier settlement discussions, which were unsuccessful, with the former premier.
"It was being put around, and briefed heavily, that I had been unreasonable in trying to resolve the matter," he said.
"I felt it was necessary, given my role. This is a very unusual situation.
"I needed to assure people, as leader, that I hadn't been unreasonable."
On his first day as witness, Mr Pesutto was questioned on a 15-page dossier prepared by him and his leadership team, which was forwarded to party members as part of their move to expel Ms Deeming from the party.
During a heated debate, Ms Chrysanthou likened the dossier to a project by an eight-year-old who had copied and pasted things with little context - something Mr Pesutto strongly denied.
Mr Pesutto's barrister, Matthew Collins KC, on Tuesday argued Ms Deeming's reputation was damaged, but said it was because of her association with an anti-trans rally and those who organised it.
The trial continues.
