Victorian Liberal MP Moira Deeming has dropped Supreme Court action against her own party after making a last-ditch plea to retain her candidacy for the November election. 

Mrs Deeming had accused former party leader Matthew Guy of assaulting her at a community event in May.

The party is now seeking to revoke Mrs Deeming’s preselection after she rejected demands to apologise to Mr Guy once police closed its investigation based on CCTV.

Mrs Deeming, who sits in the upper house for the Western Metropolitan Region, had sought an injunction in the Supreme Court which was due go to a one-day trial on Friday.

But late on Wednesday, she announced she had withdrawn the case. 

“The injunction has achieved exactly what it intended to achieve,” Mrs Deeming wrote in a statement posted to social media. 

Earlier, she sent a 12-page statement to the party’s state executive. She said providing this mediation proposal allowed her to end the Supreme Court action. 

“The state executive, having all the evidence before them, can now decide whether or not to pursue mediation or reconvene to disendorse me.”

In her statement to the party’s state executive, Mrs Deeming continued to allege she was “grabbed, held and pulled with force that caused me pain and distress”.

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Vision of the interaction appeared to show Mr Guy placing his hand on Mrs Deeming’s back during a conversation at the crowded function.

Police reviewed the CCTV and said no offence had been detected.

Mr Guy always maintained his innocence and demanded an apology, which was backed in by Opposition Leader Jess Wilson.

A profile shot of a man wearing a suit holding onto his tie knot.

Matthew Guy has threatened defamation action against Moira Deeming. (AAP: Joel Carrett)

Mrs Deeming has accepted Mr Guy did not put her in a headlock, but said she would not apologise for making the allegation in good faith.

“I cannot apologise for using the party’s confidential complaint processes,” Mrs Deeming said.

“I should not be subjected to public vilification or professional retaliation for doing so.”

Mrs Deeming said it had not been explained to her what specifically she needed to apologise for, and that it would be “disgraceful” to remove her “without reasonable grounds”.

In her letter she proposed a joint statement with the party which would make clear that Mr Guy’s actions were only ever intended “as a friendly gesture in a noisy environment” and that he did not realise Mrs Deeming, who has PTSD, “was experiencing pain, fear or distress”.

Defending herself ‘on principle’

Before sending the letter to the state executive Mrs Deeming’s lawyer separately wrote to the investigating detective senior constable in July to complain that her allegation was written off without speaking to her and insisting that she was assaulted.

“An assault includes the application of any force to another. The ‘application of force’ is interpreted broadly and includes not only physical violence but also touching,” the emails, obtained by the ABC, said.

In response to Mrs Deeming’s solicitor complaint, police said a decision was made not to charge.

The ABC contacted Victoria Police on Wednesday to confirm its position. 

“Following a thorough investigation, it has been determined there was no offence detected,” police said.

Moira Deeming and Matthew Guy

Moira Deeming accused Liberal colleague Matthew Guy of assaulting her at a community event in May. (Facebook: Matthew Guy)

Mrs Deeming, in her letter to the state executive, said she was defending herself against disendorsement “on principle”. 

She said that removing her would establish a precedent about whether party members could safely use confidential complaints processes without fear of political reprisal.

“I was deliberately careful and reserved in my sworn statement to the police, which does not contain the word ‘violent’ or ‘violence’ nor attribute malicious intent to Mr Guy,” she said.

“I told the police it was a short, painful and distressing, degrading and confusing interaction. When invited to do my best, in my own words, I said that it felt like ‘some kind of headlock’.

“This in hindsight was the incorrect word but that in no way invalidates that I was forcefully and painfully grabbed by a male colleague on my neck and shoulders. No justifiable basis exists for invalidating my account of the incident.”

In response to questions from the ABC, Mrs Deeming said she had been arguing for the party to improve its internal complaints processes for years.

“No media have reported this issue using the wording of my sworn police statement. They’ve been using snippets of messages about years of escalating issues to the point where I was concerned for my safety,” she said in a statement.

“I told the police I was directed to report it, that I felt extremely upset about it, but it was only minor and I was doubtful it would meet the threshold in any case.”

Earlier in her term Mrs Deeming successfully sued former opposition leader John Pesutto for defamation after he falsely implied she associated with neo-Nazis. Her relationship with much of the partyroom has remained strained.

Her letter said she had endured years of internal difficulties as well as a hostility with Mr Guy, and that he therefore should have known not to touch her.

Mr Guy has threatened defamation action against Mrs Deeming.

He was contacted by the ABC on Wednesday.