Liberal Senator Linda Reynolds, who plans to retire from politics at the next election, is suing both her former political staffer Brittany Higgins and her fiance David Sharaz over a series of social media posts she says have damaged her reputation.
Mr Sharaz has since thrown in the towel in his defamation battle against the former defence minister, while his partner Ms Higgins failed to convince a court her case should be delayed because of her mental health issues.
The case returned to the Western Australian Supreme Court on Tuesday to hear Ms Higgins' application to vacate the trial listed for six weeks in late July.
During the hearing, Mr Sharaz tweeted he would no longer fight the case, which was confirmed by his lawyer Jason MacLaurin SC.
"Despite our best efforts, Linda Reynolds has not accepted attempts to resolve this matter through mediation and Brittany may now be exposed to another trial. It will be her third," Mr Sharaz said on social media.
"I cannot afford to pay legal costs to defend myself over a six-week trial.
"As a result, I have today informed the court that I will not fight Reynolds' legal action anymore.
"I now appeal for Senator Reynolds to settle her litigation against Brittany, a rape victim, by agreeing to disagree and putting all of this behind them."
Outside the court, Senator Reynold's lawyer Martin Bennett said the tweet was insulting, aggravating and an "attention-seeking stunt to manipulate the media".
"That's what Mr Sharaz does best," he said.
Mr Bennett agreed it was perversely ironic that Mr Sharaz would make the announcement in a tweet while his defamation action over tweets was being heard.
"It seemed to be staged... You've seen the terms of the post - it's another attack on Senator Reynolds," he said.
He raised doubts over Mr Sharaz's claim he couldn't afford to continue the case.
"He lives in a chateau. He hasn't got a job, and he's got a QC... and two solicitors representing him," he said.