Pauline Hanson has escaped paying $250,000 to former One Nation member Brian Burston after a defamation suit was thrown out.
Senator Hanson was last year ordered to pay Mr Burston $250,000 in damages for defaming him on Nine’s the Today show.
Ms Hanson claimed the former NSW senator sexually abused a female staffer in his parliamentary office.
A NSW Federal Court justice on Wednesday dismissed the order made last year.
Mr Burston was also ordered to pay Ms Hanson’s legal fees for the original suit, with costs incurred by Ms Hanson during the appeal to be “assessed or agreed”.
The court previously heard evidence from two of Mr Burston’s former staffers, Terri-lea Vairy and Wendy Leach.
The appeal comes as Ms Hanson and former One Nation member Mark Latham face separate, unrelated legal actions in court.
The One Nation leader this week dismissed Mr Latham as the party’s leader in NSW as the controversial MP faces a defamation suit.
NSW independent MP Alex Greenwich lodged the suit following an allegedly defamatory tweet about his sexual identity.
Ms Hanson is herself facing a second unrelated defamation suit lodged by Greens senator Mehreen Faruqi earlier this year.
Both matters are still before the court.