Billionaire Kerry Stokes Faces Multimillion-Dollar Legal Bill in Ben Roberts-Smith Defamation Case
Australian billionaire media mogul Kerry Stokes has agreed to foot a staggering legal bill estimated at up to $12.5 million for the failed defamation lawsuit brought by Victoria Cross recipient Ben Roberts-Smith (BRS). The decision, made in December 2023, averted the public release of sensitive emails but has prolonged battles over costs in one of Australia’s most high-profile and expensive court cases.
The Agreement: Stokes Steps In to Cover Nine’s Costs
In a strategic capitulation, Kerry Stokes, the Seven West Media chairman worth over $3 billion, committed to paying the legal fees of the defendants—Nine Entertainment and three journalists—in the BRS defamation saga. This move came after the Federal Court ruled against Roberts-Smith in June 2023, finding that reports by The Age, The Sydney Morning Herald, and 60 Minutes accurately portrayed him as a war criminal involved in unlawful killings during Afghanistan deployments.
The total legal costs for the seven-week trial exceeded $25 million, split roughly evenly between the parties. Stokes’ pledge covers Nine’s share, shielding his involvement from further scrutiny. In exchange, Justice Anthony Besanko ruled that thousands of emails between Stokes, his advisor Bruce McWilliam, and Roberts-Smith’s legal team would remain confidential, avoiding their handover to Nine. The emails, potentially revealing funding details for Roberts-Smith’s case, were a key point of contention in Nine’s third-party costs application against Stokes and his company, Australian Capital Equity (ACE).
Background: The BRS Case and Stokes’ Role
The defamation trial, one of Australia’s longest and costliest, stemmed from 2018 articles alleging Roberts-Smith, Australia’s most decorated living soldier, kicked a handcuffed Afghan prisoner off a cliff, machine-gunned another, and bullied a female colleague. Stokes, a vocal supporter of Roberts-Smith, reportedly funded much of the soldier’s defense through Seven Network and personal channels, viewing the case as a defense of military honor.
Roberts-Smith, 46, lost the case and was ordered to pay Nine’s costs on an indemnity basis—a rare “loser pays” ruling reflecting the allegations’ gravity. He appealed in August 2023, but the full Federal Court upheld the decision in May 2024, solidifying his defeat. Stokes’ agreement came amid ongoing costs proceedings, where Nine sought to recoup fees from Roberts-Smith’s backers, including Seven West Media. The billionaire’s intervention prevented deeper financial liability for Roberts-Smith but exposed his deep ties to the case.
Ongoing Battles: Costs Hearing and Email Secrecy
Despite the agreement, the costs dispute lingers. A December 2023 hearing before Justice Besanko focused on quantifying Nine’s bill, estimated at $12.5 million plus interest. Roberts-Smith’s team argued for a party-party basis (standard costs), but Besanko favored indemnity, potentially inflating the amount. Stokes’ payment shields Roberts-Smith personally but doesn’t end the proceedings, as Nine pushes for full recovery.
The email cache—over 2,000 documents—includes communications from 2018 onward, detailing strategy and funding. Nine’s lawyers argued their release was essential for transparency, but Stokes’ costs concession rendered them moot, preserving privacy. Critics, including media watchdogs, decry this as billionaire influence quashing public interest.
Expert Opinions and Public Reactions: Questions of Justice and Influence
Legal experts view Stokes’ move as pragmatic but emblematic of wealth’s sway in justice. Defamation specialist Michael Trumble noted to the Australian Financial Review that such third-party funding often leads to “backroom deals” to avoid exposure, questioning fairness in high-stakes litigation. War crimes advocates, like those from the Independent and Peaceful Australia Network, hailed the ruling against Roberts-Smith but lamented the opacity around funding, arguing it undermines accountability for alleged atrocities.
Public reaction has been mixed, with social media amplifying debates on X (formerly Twitter). Supporters of Roberts-Smith decried media “witch hunts,” while others praised Nine’s victory as a win for journalism. Posts from accounts like @AFRWeekend highlighted the “secret emails” angle, sparking discussions on billionaire meddling in courts, with one viral thread garnering over 5,000 engagements: “Stokes pays millions to keep his role hidden—justice for sale?” Broader commentary in outlets like Yahoo News emphasized the case’s $25 million toll as a cautionary tale for litigants.
Impact on U.S. Readers: Lessons in Media, War Crimes, and Legal Funding
For Americans, the BRS saga parallels U.S. debates on military accountability, echoing cases like the My Lai massacre trials or recent Afghanistan war crime probes by the DOJ. Stokes’ funding mirrors third-party litigation financing in the U.S., a $15 billion industry often criticized for enabling risky suits, as seen in tobacco or opioid settlements.
Economically, it spotlights media moguls’ influence, akin to how U.S. billionaires like Rupert Murdoch shape narratives through outlets like Fox News. The $25 million bill underscores litigation’s costs, relevant amid rising U.S. defamation suits post-Trump v. NY Times rulings. Lifestyle-wise, it raises awareness of press freedoms, vital for investigative journalism on global conflicts.
Politically, the case ties into international law, with Australia’s commitments under the Rome Statute influencing U.S. views on allied war crimes handling. Technologically, email privacy concerns echo U.S. e-discovery battles in high-profile cases. Sports fans might note Roberts-Smith’s pre-trial media stints, blending heroism narratives with controversy.
Conclusion: A Costly Victory with Lingering Shadows
Kerry Stokes’ agreement to pay up to $12.5 million in the Ben Roberts-Smith defamation case resolves one financial front but perpetuates questions about transparency and influence in Australia’s justice system. The 2023 ruling vindicated Nine’s reporting, but the sealed emails leave gaps in understanding billionaire involvement.
Looking ahead, Roberts-Smith’s options dwindle post-appeal, while Stokes’ decision may deter similar funding in future cases. For global observers, including in the U.S., it highlights the intersection of wealth, media, and accountability—reminding that even in defeat, the true costs extend far beyond the courtroom.
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Australian billionaire Kerry Stokes, chairman of Seven West Media, has agreed to cover a staggering multimillion-dollar legal bill following the high-profile defamation case loss of war hero Ben Roberts-Smith (BRS). The case, one of Australia’s most expensive legal battles, has drawn intense scrutiny due to its financial and reputational fallout, with estimates suggesting costs could reach up to $25 million AUD ($16.7 million USD).
The Case: Ben Roberts-Smith’s Defamation Loss and Stokes’ Financial Backing
Ben Roberts-Smith, a decorated Australian soldier and Victoria Cross recipient, launched a defamation lawsuit in 2018 against Nine Entertainment’s publications, The Age and The Sydney Morning Herald, over articles alleging he committed war crimes in Afghanistan, including unlawful killings. In June 2023, Federal Court Justice Anthony Besanko dismissed the case, ruling the allegations were substantially true, effectively branding Roberts-Smith a war criminal. Roberts-Smith appealed, with a hearing set for February 2026, but the initial loss triggered a fierce battle over legal costs.
Stokes, through his private company Australian Capital Equity (ACE) and Seven West Media, initially funded Roberts-Smith’s legal defense via a loan agreement with 15% interest, contingent on a successful outcome. When the case collapsed, Nine pursued a third-party costs order against Stokes, ACE, and Seven, arguing they controlled the litigation. On December 11, 2023, Stokes capitulated, agreeing to pay Nine’s legal fees on an indemnity basis, estimated at $12.5 million AUD ($8.3 million USD), sparing the release of thousands of emails detailing his involvement.
The total legal bill, covering both sides, is speculated to exceed $25 million AUD, with some reports citing up to $30 million AUD ($20 million USD) when including Roberts-Smith’s own costs. This includes fees for top-tier legal teams, such as Roberts-Smith’s barrister Arthur Moses SC and Nine’s Nicholas Owens SC, alongside extensive discovery and court time.
Background: Stokes’ Role and the Stakes of the Case
Kerry Stokes, a media mogul worth over $7 billion AUD, has a history of backing Roberts-Smith, a former Seven employee, and other high-profile causes. His decision to fund the defamation suit was seen as both a personal endorsement of the soldier and a strategic move to counter Nine’s reporting. However, the loan agreement’s interest clause raised eyebrows, as it suggested potential profit if Roberts-Smith had won.
The case’s fallout has been profound. Roberts-Smith, once a national hero, faces ongoing legal scrutiny, including a 2023 arrest for allegedly intimidating a witness (he was not charged). Stokes’ decision to settle avoided public disclosure of sensitive communications between himself, his fixer Bruce McWilliam, and Roberts-Smith’s team, which Nine sought via subpoenas. These documents could have revealed the extent of Stokes’ influence over the litigation strategy.
The defamation trial itself was a media spectacle, spanning years and involving allegations of murder, bullying, and domestic violence. Nine’s defense relied on proving the truth of their reporting, supported by witness testimonies from Afghan villagers and SAS colleagues. The ruling not only damaged Roberts-Smith’s reputation but also placed Stokes in a financially and publicly precarious position.
Expert Opinions and Public Reactions: A Costly Precedent
Legal experts view Stokes’ agreement to pay as a strategic retreat to avoid further exposure. Australian Financial Review’s Max Mason noted that the settlement preserved confidentiality but highlighted the “enormous financial burden” Stokes assumed. Barrister Stuart Littlemore called it a “cautionary tale” for third-party funders, warning of the risks in high-stakes litigation.
Public sentiment on X (formerly Twitter) reflects polarized views. Supporters of Roberts-Smith, like @Tim_jbo, celebrated the appeal as a chance for justice, while others condemned Stokes’ involvement, with one user tweeting, “Billionaires shouldn’t bankroll defamation to shield war crimes.” Nine’s pursuit of costs was seen as a bold move, with some calling it a “David vs. Goliath” victory against Stokes’ media empire.
The case has sparked broader discussions on third-party litigation funding in Australia, where such arrangements are increasingly common but controversial. Legal analysts suggest it could lead to tighter regulations, especially when media tycoons are involved.
Impact on U.S. Readers: Lessons in Media, War, and Wealth
For Americans, this case resonates with ongoing debates about accountability for military actions and the role of wealthy patrons in legal battles. The $16.7 million USD bill underscores the financial stakes of defamation suits, akin to high-profile U.S. cases like Alex Jones’ $1.5 billion Sandy Hook verdict. Economically, it highlights risks for media conglomerates and billionaires backing litigation, potentially deterring similar ventures.
Lifestyle-wise, it prompts reflection on how public figures navigate scandal, relevant to U.S. veterans and media consumers. Politically, it parallels U.S. discussions on war crime accountability, as seen in debates over Guantanamo Bay. Technologically, the case’s reliance on digital evidence (e.g., leaked SAS footage) mirrors U.S. use of body cams in military probes. Sports fans might draw comparisons to high-stakes sponsorships, where financial backing can backfire if controversies erupt.
Conclusion: A Costly Lesson for Stokes and Beyond
Kerry Stokes’ multimillion-dollar legal bill for the Ben Roberts-Smith defamation case marks a significant defeat, both financially and reputationally, in one of Australia’s most contentious legal sagas. By settling Nine’s $12.5 million AUD costs, Stokes avoided further scrutiny but cemented the case as a landmark in third-party funding risks.
As the February 2026 appeal looms, the outcome could reshape perceptions of Roberts-Smith and Stokes’ legacy. For global audiences, including in the U.S., it’s a stark reminder of the costs—literal and figurative—when billionaires wade into legal battles tied to war and media.