The publisher's barrister, Tom Blackburn SC, initially said the five bias-related claims were "not pressed" but then abandoned them after the actor's lawyer, Brett Walker QC, said it was "a slur on the judge".

The exchange occurred late on Monday in the Federal Court in Sydney at the end of the first day of the publisher's appeal against a finding it defamed Rush and against the awarding of $2.9 million in damages.

Justice Richard White, sitting with Justices Jacqueline Gleeson and Michael Wheelahan, referred to the "undoubted seriousness" of the apprehended bias claims and asked Mr Blackburn to make submissions on Tuesday about striking out the five claims from its 20-ground appeal.

Justice Michael Wigney in April found the Daily Telegraph's publisher and journalist Jonathon Moran were reckless regarding the truth when they reported Rush had been accused of inappropriate behaviour during a Sydney theatre production of King Lear in 2015.

The judge ruled a poster and two articles contained several defamatory meanings - including that Rush was a pervert and a sexual predator - and the publisher hadn't proved they were true.

Rush was awarded $850,000 general damages and approximately $2 million in special damages to cover past and future economic loss.

Nationwide had contended Justice Wigney - orally and in written judgments - made "repeated references" to the Daily Telegraph, Moran and the publications in derogatory terms.

It previously sought access to audio records from the hearing to illustrate "the tone" used by the judge.

Mr Blackburn on Monday made submissions on other grounds, including questioning Justice Wigney's findings about Rush's former co-star, Eryn Jean Norvill, who alleged he sexually harassed her.

The judge found she was not a reliable witness, giving one example of her speaking positively about Rush at a press conference despite her claims about him.

"These were press conference in support of the production of King Lear, not a Harry Potter movie, not mainstream entertainment," Mr Blackburn said.

"She had to talk him up. It was a press conference to talk up the production.

"She was an emerging actor acting with Geoffrey Rush, the famous actor. What was she supposed to do?"

Referring to the $2 million special damages award, Mr Blackburn said the judge heard no express evidence the actor was unable to work and had fewer job offers as a result of the publications.

"Your Honours might find this an astonishing omission," he said.

Justice Wigney "cobbled together" speculation and inference from other witnesses to find Rush was unable to work because of his state of mind and had fewer job offers following publication, the barrister said.

Rush did not give evidence saying "I am unable to work because of these articles" nor did he say he had received no or fewer job offers.

Mr Blackburn said the actor's experienced lawyers made a "deliberate decision " not to ask the question "because counsel feared to ask it because the answer might be unfavourable".

He also described as "manifestly excessive" the $850,000 general damages award.

He cited the case of international cricketer Chris Gayle who was awarded $300,000 in his defamation lawsuit which had involved a lot more publications.

Both men were well known internationally in their respective fields and both sued over imputations related to sexual impropriety towards a woman in the workplace.

Mr Walker will address the judges on Tuesday.

Australian Associated Press