Ms Deeming launched court defamation action against the Liberal leader over comments he made about her attending a 2023 Let Women Speak rally that was gatecrashed by a group of masked men who performed the Nazi salute.
Several Liberal politicians will give evidence in the three-week trial including federal Senator Sarah Henderson, current Victorian Liberal MP Renee Heath and former MP Matt Bach.
A diagram submitted to the court showed five different groups of activists and protesters who support various causes were around parliament on the day of the Let Women Speak Rally.
Ms Deeming's barrister Sue Chrysanthou SC said her client did not see anyone performing a Nazi salute until a group of men, who had nothing to with her rally, were escorted away by police.
"Really all those men did in connection with my client was interfere with a group of women," the barrister said.
She claimed Mr Pesutto then went on "quite the roadshow to defame my client" in subsequent media interviews about the events outside parliament.
Ms Chrysanthou accused him of embarking on a "campaign of destruction" against Ms Deeming who had such a good reputation she was chosen as party whip before "he tarred her with the Nazi brush".
Moira Deeming's barrister Sue Chrysanthou said John Pesutto's conduct over a recording was strange. (Con Chronis/AAP PHOTOS)
An audio recording that contradicts Mr Pesutto's evidence about what happened in a key meeting between the party's senior leadership and Ms Deeming emerged one week before the trial started, Ms Chrysanthou said.
She alleged Mr Pesutto, who is a defamation lawyer, did not tell his counsel that senior Liberal David Southwick had the 70 minute-long recording of the meeting.
"Knowing there was a recording and not mention it, not provide it to his lawyers, it's very strange conduct," Ms Chrysanthou told the Federal Court on Monday.
Multiple text messages and emails between Liberal staffers and politicians were read out in court, including from Mr Pesutto's chief of staff Louise Staley who said he should "consider expelling" Ms Deeming on the evening of the rally.
"I think we might need to discuss Moira. Do we really think her misjudgment, and worse, won't keep hurting us?" Mr Pesutto texted Mr Southwick.
A text from John Pesutto queried whether Moira Deeming's "misjudgment" would keep hurting the party. (Con Chronis/AAP PHOTOS)
Ms Chrysanthou previously represented broadcaster Lisa Wilkinson in Bruce Lehrmann's high-profile case against Network Ten earlier in the year.
Mr Pesutto arrived at court holding hands with his wife, Betty, along with with his barrister Matt Collins KC, who represented Network Ten in the same civil case.
Ms Deeming was initially suspended then expelled from the Liberal Party before becoming an independent in parliament.
Mediation between her and Mr Pesutto broke down in 2023 over the former Liberal MP's demand to return to the party room without conditions.
Mr Pesutto denies wrongdoing and previously reached settlements with rally speaker Kellie-Jay Keen and organiser Angela Jones, issuing both women a public apology.
His barrister is yet to address the court.
