Opposition Leader John Pesutto’s plan to have the Victorian Liberal Party fund his defamation case has hit a hurdle amid revelations the party is uninsured.
The Herald Sun has confirmed the Liberal Party has no insurance for defamation actions and has been told it would be financially impractical to do so.
A party room meeting this week voted to ask the party’s Administrative Committee to approve extending its legal indemnity insurance to MPs.
But senior Liberal sources said the plan was doomed to fail.
It would leave Mr Pesutto facing a significant legal bill unless the party agreed to cover the cost out of their own funds.
Mr Pesutto is facing defamation action from exiled MP Moira Deeming as well as UK-based women’s rights activist Kellie-Jay Keen.
Ms Keen has also threatened action against deputy leader David Southwick, upper house leader Georgie Crozier and her now-former deputy Matt Bach who announced his resignation this week.