The 14-day deadline imposed by Mr McPhie’s legal team for a response expired yesterday with Mrs Mirabella rejecting the allegations were defamatory.

Solicitor John Suta said last night he would await instructions from Mr McPhie about his next move, but he maintained the former councillor had a strong case if he wanted to proceed.

Mr McPhie lost his spot on Wangaratta Council at last year’s elections.

In the election aftermath, Mrs Mirabella sent congratulatory letters with personal notes to successful candidates, mayor Rozi Parisotto, Paul O’Brien, Julian Fidge and Noel Amery.

A congratulatory note to Cr O’Brien stated: “Paul, the team effort proved a protection racket can be challenged, now to expose it!”

Another, to Cr Parisotto, read: “An enormous achievement years in the making.

“It may take a while, but when good triumphs over evil it makes it all worthwhile!”

The letters were obtained under a Freedom of Information request.

Mr Suta alleged the note to Cr O’Brien implied Mr McPhie used his position as a councillor to promote or organise a protection racket, engaged in illegal and criminal activity associated with the protection racket and, as such, was not a fit and proper person to hold the position of councillor.

Mr Suta said yesterday Mrs Mirabella responded before the deadline, but rejected she defamed Mr McPhie and wouldn’t be making an apology to him.

“It will all be up to Mr McPhie to decide whether he wants to take it further,” Mr Suta said.

“But the advice of the legal counsel is we should.”

Mrs Mirabella was unavailable for comment personally, but a spokesman said an “appropriate response” had been forwarded to Mr McPhie’s solicitors.

“Mrs Mirabella does not intend to use the media inappropriately to publish private legal correspondence,” he said.

Mr McPhie was unavailable for comment yesterday.