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Why Geoffrey Rush may not get a $2.9 million payout

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Headlines around the world say actor Geoffrey Rush has been awarded $2 million for lost earnings in a defamation case against The Daily Telegraph, in addition to the $850,000 payout he has already received.

But the actor may not necessarily receive a $2.9 million payout.

Matt Collins QC explained why on 3AW Breakfast.

“What happened was Geoffrey Rush and his team were asking for an award of damages to compensate him for his lost income,” he said.

“In the end The Daily Telegraph and Geoffrey Rush have agreed that if he is entitled to damages for his lost income then the amount should be $1.98 million dollars.”

The two parties reached the agreement to hedge against the risk that the judge might have awarded Mr Rush a lot more, or a lot less.

Mr Rush initially sought to be compensated more than $20 million.

The Daily Telegraph has an appeal lodged against the defamation claim.

If the appeal is successful Mr Rush will not receive a payout.