The businessman Peter Holmes a Court has been accused of orchestrating an internet dirt campaign to discredit those speaking out against his proposed takeover of the South Sydney Rugby League club, a court has heard.
Mr Holmes a Court is being sued for defamation in the NSW Supreme Court by Tony Papaconstuntinos, a prominent member of the group who opposed his 2006 takeover of Souths with the actor Russell Crowe.
Mr Papaconstuntinos, a senior official of the Construction, Forestry, Mining and Electricity Union, has alleged Mr Holmes a Court defamed him in a letter written to his boss, claiming he had benefited from football club funds through the overpayment of his son, Jamie Papa, for assistant coaching duties.
Counsel representing Mr Papaconstuntinos, Rodney Weaver, accused Mr Holmes a Court of encouraging Wade Singleton, the administrator of a blog on the Rabbitohs official fan website, and a blogger who went by the nickname of "The Botak", to engage in an internet campaign to damage opponents of the takeover bid.
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In a surprise move, counsel representing Mr Papaconstuntinos, Rodney Weaver, told the court he wished to present further evidence that Mr Holmes a Court had been motivated by malice when he wrote the letter to Mr Papaconstuntinos's boss on March 17, 2006. He told the court the evidence related to phone conversations between Mr Holmes a Court and "The Botak", revealed to be Souths supporter Graeme Tunks, in early 2006.
The court heard that in one alleged conversation they spoke about the $60,000 salary being paid to Jamie Papa through sponsorship by building and construction companies.
Mr Holmes a Court allegedly told Mr Tunks: "We need to use this somehow," or words to that effect, Mr Weaver told the court.
"Use it closer to the vote, the information will have more effect," Mr Tunks allegedly replied.
In another alleged conversation, Mr Tunks told Mr Holmes a Court there was "mileage to be gained" by informing those connected to Mr Papaconstuntinos about the allegations.
Justice Lucy McCallum adjourned the matter until April to allow lawyers for Mr Holmes a Court to investigate the allegations.