Speaking yesterday after his victory in defending the legal claims that he failed to monitor One.Tel's finances and misled his fellow directors, Mr Rich said Stan Howard telephoned his father, Steven Rich, in June 2001 with a request that he drop his defence to the case.

''The prime minister was sending a message through Stan Howard that it was very important that I settled and didn't defend the case,'' Mr Rich said.

Avoided a ban ... Jodee Rich, left, and Mark Silbermann, bottom centre. Bottom right, Brad Keeling. Lachlan Murdoch, top right, and James Packer, top centre, were called as witnesses. Photo: Peter Morris, James Davies, AP, Paul Miller and Natalie Boog

Mr Rich said he believed the prime minister was urged to make the move ''because Kerry [Packer] had an interest in [the case]''.

''My theory all along has been that Kerry really did what he could at the time to stir this up,'' Mr Rich said.

Mr Rich said Stan Howard was his father's lawyer.

Contacted at his Sydney home yesterday, Stan Howard said he did not recall talking to Steven Rich about the case.

''I knew Steven Rich, I knew him for years,'' he said. ''But I have no recollection of any such conversation, and I think I would know if such a conversation had taken place.

''So far as I am concerned [there's] no way my brother would have rung me and said that,'' Mr Howard said. ''I had nothing to do with One.Tel and really I wouldn't get involved. I just had nothing to do with it.''

John Howard said he had not instructed his brother to call Steven Rich.

''That's ridiculous the whole thing is ridiculous,'' Mr Howard said yesterday. ''I don't know what contact there was between my brother and Steven Rich, whom he knows, but knowing my brother the whole thing is ridiculous.''

Mr Howard added that he had never contacted the Rich family.

Mr Rich said that he stood by his claims.

In response to further queries from the Herald, Mr Rich's 79-year-old mother, Gail Rich, said she remembered answering Stan Howard's phone call and that Stan had said ''his brother wanted [Jodee] to back off and settle the case''.

Mrs Rich said Stan Howard may have ''dropped by'' her home to speak to her husband.