Radio bosses shrug off any blame for Jackie O's PTSD over her bust up with Kyle - and say she should have taken the pot of gold they offered her when she quit

Radio giant ARN says it's not responsible for Jackie 'O' Henderson's 'pain, suffering, humiliation and distress' after her on-air blow-up with former co-host Kyle Sandilands because she'd already decided to quit the show.

The claim was made in an amended defence filed by the Australian Radio Network (ARN), the owner of KIIS 106.5, in the Federal Court and released publicly on Tuesday.

Henderson launched a Fair Work lawsuit against ARN following an argument with Sandilands during a live broadcast of the Kyle & Jackie O Show in February that left her in tears.

Her lawyers sent a letter of complaint to ARN stating she 'cannot continue to work with Mr Sandilands' due to alleged ongoing bullying, and attempted to negotiate a different program and timeslot.

Instead, ARN terminated her contract.

In her statements of claim, Henderson argued the broadcaster was liable for her poor mental health due to her alleged unlawful termination.

ARN's amended defence now says it was not liable for any decline in Henderson's mental health because she'd decided to leave the show by the time her contract was terminated in March.

The broadcaster also claimed Henderson's alleged loss or damage was made worse because she didn't accept or negotiate the $2million per year - a fraction of her breakfast radio salary - that was offered for her to host the afternoon drive show.

In the court documents, ARN claimed that even if it hadn't terminated her contract, she had already 'resolved to perform on another show, at a different time of day', and would not have done the job she was hired to do.

It said that even if the Fair Work Act was breached and the contract termination was unlawful, Henderson's losses would have been limited because the contract would have ended soon anyway. 

According to further documents released by the court on Tuesday, Henderson claimed ARN misled the share market by leaving out key details of her argument with Sandilands.

On March 3, ARN published a statement to investors saying Henderson indicated she could not work with Sandilands and the long-running show would end.

'ARN Media Limited announces Ms Jacqueline Henderson has given notice that she 'cannot continue to work with Mr Kyle Sandilands',' the statement read.

'Accordingly, ARN has terminated the services agreement with Henderson Media Pty Ltd, under which Ms Henderson presents the Kyle and Jackie O show.'

However, Henderson claimed it was misleading for ARN not to include the context of psychological damage she allegedly sustained from Sandilands' repeated attacks.

Henderson claimed an expert psychiatrist diagnosed her with post-traumatic stress disorder as a result of alleged bullying by Sandilands. 

ARN defended its ASX statement, saying Henderson had sworn them to secrecy.

'If (which is denied) any loss or damage was suffered ... that loss or damage was caused by Ms Henderson's insistence those matters be kept confidential,' court documents read.

In further court documents, Henderson slammed ARN's version of events.

'It is wholly illogical in circumstances where there is no causal link ... between Ms Henderson's insistence on confidentiality and the content of ARN's ASX announcement,' she claimed.

ARN previously argued that Henderson effectively terminated her own contract by trying to wriggle out of those two major obligations.

It labelled Henderson a 'bad leaver' under a loan share agreement tied to her contract, which let the company buy $3million worth of ARN stock on her behalf. 

If the broadcaster successfully argues that Henderson breached her agreement or walked away from her contract without cause, she could be required to repay the $3million.

According to court documents, the contract said: 'Your loan will generally be waived in full on the loan repayment date.

'In certain "bad leaver" circumstances, the loan may not be waived, and may become repayable by you, at an earlier date.'

In the amended defence, ARN said the board had the power to determine whether the shares were forfeited if she was deemed a 'bad leaver'.

Court documents state ARN's board declared that the 'bad leaver' event had occurred on April 29. 

The shares were sold to repay the loan on May 5.

Henderson's amended statement of claim argued ARN terminated the contract unlawfully, meaning the bad leaver clause was never validly triggered.

ARN axed the $200million deal with the radio duo after a segment on the Kyle and Jackie O Show on February 20 where Sandilands said Henderson's 'fixation' on astrology made her 'almost unworkable'.

Henderson left the Sydney studio in tears.

Sandilands then said: 'You can't start crying about it, it's not that big a deal.'

According to Henderson's statement of claim, the broadcaster did not attempt to intervene or stop Sandilands.

On February 26, Henderson's lawyers wrote a letter of complaint explaining the broadcaster had been notified about Sandilands' 'bullying'.

Henderson also accused the broadcaster of failing to provide a safe work space.

ARN did not accept liability for Henderson's allegations and claims it acted appropriately by conducting welfare checks and holding internal discussions following the on-air argument. 

Sandilands' own $100million contract was torn up after Henderson left the program.

He settled his own civil claim against ARN for unfair dismissal in June.

He originally sued the radio giant for $82.5million, but walked away from the settlement with about $12million. 

Henderson's case is set down for hearing in Sydney's Federal Court in October.