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Posted: 2023-07-14 06:15:10

Former soldier Heston Russell's defamation case against the ABC is headed for trial once again, after a judge allowed the broadcaster to reinstate a public interest defence amid an argument about protecting the identity of a source.

Mr Russell is suing the ABC and two journalists in the Federal Court over a story published on television, radio and online in 2021, claiming it implied he was involved in the death of an Afghan prisoner while a commando in Afghanistan.

The story included a denial of wrongdoing from Mr Russell, who was the commander of the November Platoon from 2011 to 2012.

He sued on the basis of the material being read together with previous reporting which contained allegations from a US marine given the pseudonym "Josh" about the death of an Afghan prisoner.

The ABC on Wednesday indicated it would drop a defence of public interest, after a court order required the broadcaster to hand over documents including the unredacted identity of "Josh".

A man and a woman

Heston Russell with his barrister Sue Chrysanthou outside court on Friday. (AAP: Bianca De Marchi)

Barrister Lyndelle Barnett said the ABC would not comply with the order as her client took promises to protect sources "very seriously".

But on Friday, the court heard Mr Russell's lawyers may know who the source is, constituting a "material change in circumstances" that prompted the broadcaster to ask the judge to vacate his previous orders.

Nicholas Owens SC, for the ABC, said his client remained "eager" to have a substantive ruling on its public interest defence.

But he said journalist Mark Willacy, one of the respondents, would not be breaching his promise to the source if asked to do so during a trial.

"He's an ethical journalist … he's made a promise to someone and he's going to keep it," he said.

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