Former Greens MP Adele Carles has been warned not to use a defamation court to air personal grievances against former lover and West Australian Treasurer Troy Buswell.

Ms Carles is being sued for defamation by the controversial Liberal after their affair spectacularly soured late last year amid allegations of inappropriate behaviour by Mr Buswell.

Mr Buswell is pursuing her over embarrassing allegations she levelled against him in a series of interviews, press conferences and social media posts, including claims he acted inappropriately during a party at the home of millionaire property developer Nigel Satterley.

In the latest court hearing in the case, Ms Carles revealed in court that negotiations were advancing on a potential out-of-court settlement.

But the former state MP, who lost the seat of Fremantle in March's state election, also argued successfully the case should be heard in open court.

That was despite the protestations of Mr Buswell's lawyer Martin Bennett, who said Ms Carles' arguments on paper went "massively beyond" what was appropriate.

"(The court) is not a stage for Ms Carles to attack the plaintiff," Mr Bennett said.

He also said Mr Buswell's availability to appear at any hearing would be limited as his "commitments to the state may take precedence".

Justice Rene Le Miere adjourned the hearing to a date to be fixed later in the year.

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