Federal MP Clive Palmer is seeking more than $1 million in damages from the Queensland premier for allegedly defaming him.
The federal member for Fairfax has lodged papers in the Queensland Supreme Court.
Papers have also been served on Premier Campbell Newman through the Crown Solicitor.
Mr Palmer says the premier’s claims he tried to “buy” the Newman government are totally false and damage his integrity.
“These comments by Mr Newman can’t be allowed to go unchallenged,” he said.
Earlier on Wednesday, the premier seemed unfazed by legal action by the leader of the Palmer United Party.
Mr Newman refused to comment on whether it would be appropriate to use taxpayer funds to defend the case.
Mr Palmer is seeking $1.1 million in damages. If he wins the case, he has promised to give the money to a charity that works with public servants sacked by the Newman government.