THE sexual harassment saga surrounding the Speaker, Peter Slipper, will be fought out in court after he and his accuser, James Ashby, failed to reach an agreement following a marathon mediation session at the Federal Court yesterday.

As a result, the sexual harassment case will resume today. Mr Slipper's application to have the case thrown out as an abuse of process will be heard.

Mediation fails ... James Ashby outside the hearing.

Separately, Mr Slipper still awaits a decision by the Commonwealth Director of Public Prosecutions concerning alleged abuse of taxpayer-funded Cabcharges.

These dual proceedings have prevented Mr Slipper presiding over the House of Representatives since he stood aside in May.