"Your Honors might find this an astonishing omission," Blackburn told the judges.
Blackburn said Wigney "cobbled together" speculation and inference to find Rush was unable to work because of his state of mind following the publications and had fewer job offers since then.
Rush did not give evidence saying: "I am unable to work because of these articles" or testify that he had received no or fewer job offers, Blackburn said.
Blackburn said the actor's experienced lawyers made a "deliberate decision" not to ask the questions because the answers "might be unfavorable," Blackburn said.
Blackburn later dropped the publisher's claim that Wigney's conduct during the trial created an "apprehension of bias" in favor of the actor.
Rush's lawyer Bret Walker described that claim as "a slur on the judge."
Walker will present Rush's response to the appeal when the hearing resumes.
Rush received the best actor Oscar in 1996 for his portrayal of pianist David Helfgott in "Shine" and was nominated for roles in "Shakespeare In Love," ″Quills" and "The King's Speech." He is also famed for his portrayal of Captain Barbossa in the "Pirates of the Caribbean" films.
He received Australia's highest civilian honor in 2014, the Companion of the Order of Australia, for service to the arts.
- AP