Victorian Liberal leader John Pesutto will fight any defamation action brought by Moira Deeming after the controversial MP was expelled from the parliamentary party.
Ms Deeming last week demanded the Victorian Liberal leader agree to issue a statement exonerating her of being a Nazi or Nazi sympathiser or face legal action.
Polwarth MP Richard Riordan, an ally of Ms Deeming, wrote to Mr Pesutto earlier in the week to urge him to delay the meeting over fears the motion was technically invalid and could led to a messy legal dispute. That request was ignored.
Friday’s decision means the upper house MP remains on the crossbench for the remainder of her term.