Mafia links alleged in Liberal Party court spat
A Sydney lawyer allegedly accused a prominent inner west businessman of being corrupt and having mafia links during a Liberal Party meeting is now the subject of defamation action.
Solicitor Robert Balzola is suing Inner West councillor Julie Passas and Haberfield restaurateur Tony Raciti - all card-carrying Liberals, claiming the pair called him a criminal who "beats his wife" during an annual general meeting.
But in a hearing before NSW Supreme Court Judge Stephen Campbell last month, Ms Passas' and Mr Raciti's barrister, Nicolas Kirby, said a lawyer, "Witness X", present at the party meeting claimed to have heard Mr Balzola make slurs against Mr Raciti.
"She will say that the plaintiff made allegations against Mr Raciti. Allegations of stealing, of political corruption, of associations with the mafia," Mr Kirby said.
"In response Mr Raciti said, 'that's rich, you're a criminal'."
The court heard Mr Balzola then said words to the effect of, "how dare you call me a criminal? You have no basis for that," to which Mr Raciti allegedly replied, "you had criminal proceedings against you".
The argument allegedly unfolded in the upstairs section of Mr Raciti's restaurant Dolcissimo, where about 30 people were gathered on March 29, 2016.
The court heard Mr Balzola attended the meeting as a scrutineer over voting that was taking place.
He has alleged in court documents Cr Passas said words to the effect of, “he beats his wife. He has an AVO [apprehended violence order]”.
According to the statement of claim, Mr Raciti is then alleged to have said, “it is true, I saw it in the paper, he has a criminal record”.
In a joint defence, Cr Passas and Mr Raciti denied making the statements.
But in an application previously decided by Justice Lucy McCallum earlier this month, the pair sought the defences of qualified privilege and truth.
Mr Balzola was charged with two counts of assaulting his wife, Marlene, at their Croydon home in November 2008, and conditions were placed against him, including that he not go within 200 metres of her.
In July 2009 both charges were dismissed on the condition that Mr Balzola could attend mental health treatment.
Justice McCallum refused to allow Cr Passas and Mr Raciti to add the new defences, describing them as "weak", and leaving them to run the arguments that they didn't make those statements or, if they did, the statements did not mean what Mr Balzola claims.
But in a hearing last month, Mr Kirby said the new evidence in the form of Witness X's version of events could give Mr Raciti the defence of qualified privilege, as it was allegedly said as a "counter-punch".
The new claims arose during an application from Mr Kirby to vacate the hearing, in which he said a conflict of interest had arisen in him representing both Ms Passas and Mr Raciti.
He said that while Ms Passas wanted the witness called, Mr Raciti didn't, claiming not to remember any such exchange between him and Mr Balzola taking place.
"I cannot continue to act for both of my clients," Mr Kirby said.
The hearing was adjourned to a later date, with legal costs awarded to Mr Balzola.