Network Ten has been ordered to pay journalist Lisa Wilkinson's legal costs in a defamation suit brought against her and the broadcaster by Bruce Lehrmann.
Wilkinson launched a cross-claim against Ten after retaining her own legal representation in the case, arguing she did not have faith the company would act in her interests.
Ten lawyer Robert Dick SC told a Federal Court hearing on Wednesday the broadcaster no longer contended with Wilkinson retaining her own legal team, but did take issue with the scope of the costs.
Wilkinson's lawyer, Michael Elliott SC said Ten's sudden change of position amounted to "vindication" for his client.
"This is not just a capitulation, this is an embarrassment," Mr Elliott told the court.
"We have been led on a merry dance right back to where we started almost a year ago."
The defamation case followed a February 2021 report on The Project that aired Brittany Higgins' claims she was raped in Parliament House.
Her alleged attacker, fellow Liberal staffer Lehrmann, was not named in the broadcast.
Among a team of lawyers hired by Wilkinson for her defence was high-profile defamation barrister Sue Chrysanthou SC, helping her rack up a legal bill estimated to be far in excess of $700,000.
Federal Court Justice Michael Lee said it was "plain beyond peradventure" that it was reasonable for Ms Wilkinson to retain separate lawyers, but he said the exact amount owed by Ten would best be determined at a later date when the defamation trial had concluded.
"The way differences had emerged between Ms Wilkinson and Network Ten ... she will be seeking to protect her reputation as the primary objective," he said.
"Whereas Network Ten's objectives will not be likely to do so given the current employment situation."
Wilkinson gave evidence on Tuesday that Ten had refused to publicly admit the network's senior legal counsel, Tasha Smithies, and executives gave their approval for her controversial 2022 Logies acceptance speech.
In an affidavit, Wilkinson said after the speech, which praised Ms Higgins but led to Lehrmann's rape trial being delayed, she felt "isolated, unprotected and abandoned" by Ten.
She added that given the breakdown in her relationship with the broadcaster she did not have any confidence the network would make legal decisions in her interests in the defamation case.
Ms Smithies told the court on Wednesday Wilkinson had become "part of the story" at the time of her speech and to deviate from her support of Ms Higgins could create greater problems with her giving evidence at Lehrmann's trial.
Ten retained Marlia Saunders and Matthew Collins KC to represent both the company and Wilkinson in the defamation case.
Ms Saunders also gave evidence on Wednesday, facing questions about whether any conflict arose in representing both Ten and Wilkinson.
She said it was her understanding Ten did not want to make a submission to an inquiry into Lehrmann's failed prosecution because it was not a "commercially" good idea.
Ms Smithies said no conflict had arisen between the parties at that stage.
Ms Crysanthou said Wilkinson was keen to appear at the Canberra-based inquiry to apologise in person, but was advised by Ten lawyers that would "make things worse".
Shortly after the Logies speech, Dr Collins was interviewed on Seven's Sunrise program, in which he called the speech "ill-advised".
In her affidavit, Wilkinson said she could not understand why the barrister had been engaged to act for her when he had just criticised her on national television.
Five months after the Logies speech, Wilkinson was informed she would be removed as co-host of The Project with two years left on her contract.
Wilkinson said her agent told her the decision was because there was too much heat on her following the Logies and therefore too much "brand damage".
Lehrmann has always denied any sexual contact occurred with Ms Higgins. His criminal trial was eventually derailed by juror misconduct.
