The Daily Telegraph has denied accusing actor Geoffrey Rush of any sexual misconduct in articles alleging "inappropriate behaviour" during a Sydney Theatre Company production.
The Oscar winner is suing the Sydney tabloid's publisher, Nationwide News, and journalist Jonathon Moran for defamation in the Federal Court over the articles, which detailed his alleged conduct towards a female colleague during a 2015 production of King Lear.
Rush's statement of claim says the articles made him out to be a pervert and sexual predator who inappropriately touched an actress.
They suggested his conduct was so serious the theatre company would never work with him again.
But Nationwide News barrister Lyndelle Barnett on Thursday told a case management hearing the articles didn't make allegations that Rush engaged in inappropriate behaviour of a sexual nature.
She said an issue at trial would be whether the articles did carry such imputations.
Rush's barrister, Richard McHugh SC, asked what the alleged inappropriate behaviour was if not sexual in nature.
He said one front-page article carried the headline "King Leer" and continued inside the newspaper next to an article about alleged sexual assaulter Don Burke.
Rush's legal team is seeking to have the defences of truth and qualified privilege struck out and has successfully had the publisher's defence suppressed until a hearing considers their application on February 19.
Mr McHugh said the Daily Telegraph had pleaded truth to only a handful of imputations while qualified privilege was a "hopeless" defence that was sure to be abandoned.
Ms Barnett said they intended for the qualified defence to run. She said they would give further particulars on the truth defence in an amended document before the next hearing.
