Explosive Lehrmann case witness not 'noble, public-interested person': judge

"One could rationally form the view that this is a man who desperately wants to do as much damage to his previous employer as he could conceivably do," Justice Michael Lee said on Friday afternoon.

Taylor Auerbach has alleged Seven covered Mr Lehrmann's drug and sex worker costs as "pre-production expenses" while the network courted the man into an exclusive media deal for the Spotlight program.

"That was the vaguest of the categories we could choose without being deceptive or misleading," the surprise star witness told the Federal Court earlier in the day.

However, when hearing closing submissions, the judge interrupted counsel for journalist Lisa Wilkinson, who had described Mr Auerbach as impressive and making admissions against his own interest.

"That doesn't mean he's not a truth-teller," Justice Lee said after his observation of the witness.

"But don't put him up as some sort of noble, public-interested person who was coming along to get something off his chest because he thought he'd assist his majesty's justices.

"He's a man who wanted to make a range of allegations against people under absolute privilege."

Ten was allowed to reopen its case in the defamation proceedings brought forward by Mr Lehrmann this week, delaying Justice Lee's judgment, to hear Mr Auerbach's evidence.

The long-awaited decision has once again been reserved, with the judge noting he would indicate next week regarding a handing down date.

"Believe me, there is a symmetry of interest in getting this out as quickly as possible," he said.

Mr Lehrmann is suing Network Ten and Ms Wilkinson for defamation over a 2021 The Project interview airing Brittany Higgins' Parliament House rape allegation.

The court had previously watched a video of Mr Auerbach breaking the golf clubs, said to have cost thousands of dollars, of his former Seven boss Steve Jackson.

"Very unusual you get in a witness box and you see a witness in a witness box saying they hate people," the judge said on Friday.

"It's very unusual that degree of animus that one sees from the golf club video."

The video is no doubt bizarre in nature.

Mr Auerbach defended his actions in the footage, claiming it was in fact a parody of another video, also watched in court, of another former Spotlight boss Mark Llewellyn.

In his first day in the witness box, Mr Auerbach openly admitted hating both former colleagues and even backgrounding journalists against Mr Jackson.

"He's full of loathing for his former colleague and employer," Matthew Richardson SC, representing Mr Lehrmann, told the court in his closing submissions.

Mr Auerbach has previously claimed Seven reimbursed the costs of drugs, sex workers, illicit drugs, dinners and accommodation to help ink the media exclusivity deal for the 2023 interviews.

In texts published to the court website, Mr Auerbach described Mr Lehrmann as being "on the warpath again" on a night out in Sydney, allegedly doing drugs as he agreed to do the programs.

"Omg I have got the greatest yarns ever," Mr Auerbach texted former Seven boss Mark Llewellyn.

On Friday, Mr Auerbach doubled down on those claims and the court received a document Ten claimed was proof Mr Lehrmann was reimbursed for drugs and sex workers from that January 2023 night in Sydney.

That document showed an invoice from Mr Lehrmann for a hire car, a Sydney restaurant, and $750 for "pre-production expenses".

Asked what he understood the last charge to be regarding, Mr Auerbach responded: "Mr Lehrmann's expenditure on cocaine and prostitutes.

"He needed to replenish his bank account after a bender."

There is no evidence this invoice was paid or that Seven bosses were aware of the activities the costs are alleged to have covered.

Mr Auerbach said he and another Seven worker made the deliberate choice to change the nature of the expense because "per diems" could only be granted to those employed by the network.

"The conduct that's been exposed before your honour over the last day and a half or so goes to the core of Mr Lehrmann's honesty and integrity," Matthew Collins KC, representing Ten, said during closing submissions.

The former producer has also accused Mr Lehrmann of breaching an implied court undertaking by leaking untendered evidence from his criminal trial to the television network for broadcast.

Mr Auerbach even claimed being offered a promotion and a pay rise after one night in November 2022, when he drunkenly spent thousands of company dollars, without permission, on massages for he and Mr Lehrmann.

"Somehow, in the perverse universe in which this program was apparently operating, Mr Auerbach was not terminated for spending more than $10,000 on the company credit card for illicit activities in connection with getting the story of the year," Dr Collins told the court.

"It's staggering."

Seven hit back at many of Mr Auerbach's claims in a statement reportedly released to media outside the Federal Court on Thursday and sent to all staff.

The network said it was appalled by the allegations and did not condone the behaviours described by Mr Auerbach.

"Seven did not offer a promotion or pay rise to Mr Auerbach in November 2022, nor did it do so at any time after that," the statement said.

"Seven did not reimburse Bruce Lehrmann for expenditure that has allegedly been used to pay for illegal drugs or prostitutes, and has never done so."

The network also defended itself against claims it did not comply with subpoena obligations last year and said it had never asked Auerbach to destroy evidence.

It may be forced to answer further questions on the matter with legal counsel for Ms Wilkinson indicating it would like to cross-examine Seven executive Bruce McWilliam.

The civil case brought forward by Mr Lehrmann was heard in November and December of last year during a month-long trial.

While the television interview Mr Lehrmann is suing over did not name him, he claims being identified and defamed.

In their defence, Ten and Wilkinson have been aiming to prove the rape allegation made by Ms Higgins against her former Liberal staffer colleague is substantially true.

The network and the high-profile journalist have also argued they reported the allegation reasonably, professionally, and did so in the public interest.

MORE DEFAMATION TRIAL COVERAGE:

Mr Lehrmann has always denied raping Ms Higgins in the ministerial office of Senator Linda Reynolds in the early hours of March 23, 2019.

His criminal trial was aborted due to juror misconduct and the charge of sexual intercourse without consent levelled at him later dropped over concerns for Ms Higgins' mental health.

No findings have been made against him.

The trial continues on Friday.