The three publishers that successfully defended Ben Roberts-Smith's defamation cases over their war crimes reporting are seeking to hit Seven Network with their legal bills after it financially backed the former soldier.
The Federal Court on Thursday was told costs would be sought from Seven and Kerry Stoke's private company Australian Capital Equity which both entered into loan agreements with Mr Roberts-Smith to support his lawsuits.
Justice Anthony Besanko earlier this month threw out the Victoria Cross recipient's proceedings, finding war crime reports he was involved in the unlawful killing of four unarmed prisoners in Afghanistan were substantially true.
The lawsuits relate to a number of 2018 reports published by two Nine-owned publications, The Age and The Sydney Morning Herald, as well as The Canberra Times about SAS personnel while deployed in Afghanistan.
After almost five years since the cases were filed and a 110-day hearing, the legal costs are estimated to be more than $25 million for both the former soldier and media companies.
Mr Roberts-Smith has until July 12 to file an appeal.
Representing the news organisations, barrister Nicholas Owens SC said his clients would chase costs from Seven and ACE.
The loan agreements with Mr Roberts Smith included terms that Seven and ACE's lawyers could have "oversight and management" of the defamation lawsuits.
Seven loaned the war veteran funds until June 23, 2021 with ACE taking over the financial backing of the cases after that date.
Barrister Justin Williams SC, representing the two Stokes-backed firms, tried to set aside subpoenas issued to his clients seeking invoices regarding the times their lawyers attended court or discussed the defamation cases.
The documents sought could not be used to make a costs order because they did not show Seven or ACE directing or controlling the conduct of the lawsuits, Mr Williams said.
"All it indicates is that my clients were monitoring the proceedings and it's understandable why they wished to do so," he told the court.
Mr Owens disagreed, saying the court could infer the level of control from the number of times Seven's lawyers were in court when all other evidence regarding the broadcaster was considered.
Justice Besanko reserved his decision.
Mr Owens said his clients were also seeking indemnity costs from Mr Roberts-Smith for his "unreasonable, delinquent and dishonest" conduct in the proceedings and for suing over imputations he claimed were defamatory but which he knew to be true.
These orders are typically granted by the court in lawsuits that were frivolous, hopeless or doomed to fail.
The former SAS corporal has agreed he will have to pay indemnity costs after March 17, 2020. But he is fighting suggestions he be stuck with the bill before that date.
A two-day hearing for the costs applications against Mr Roberts-Smith, Seven and ACE will start in the Federal Court on September 4.
On that date, Justice Besanko will also hear a bid by the Commonwealth to let the Office of the Special Investigator access evidence used in the civil lawsuits in its criminal investigations over alleged war crimes in Afghanistan.
This would ensure prior orders made by the judge to protect national security would not "frustrate or impair" the conduct of the ongoing investigations, said commonwealth barrister Joe Edwards.
In November 2020, a report into alleged war crimes by special forces in Afghanistan was released finding credible evidence 39 civilians and prisoners were unlawfully killed by Australian troops while two others were subject to cruelty from 2007 to 2013.
Two years later, more than 40 alleged offences were under investigation.
Mr Roberts-Smith has not been charged and maintains his innocence.
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