The Federal Court has heard former senator David Leyonhjelm, who was found to have defamed Sarah Hanson-Young, has used his settlement offer to "insult" the Greens senator.

Key points: In November, Justice Richard White ordered Mr Leyonhjelm pay $120,000 in compensation

In November, Justice Richard White ordered Mr Leyonhjelm pay $120,000 in compensation Senator Hanson-Young's lawyer described Mr Leyonhjelm's offer as "an offer of nothing"

Senator Hanson-Young's lawyer described Mr Leyonhjelm's offer as "an offer of nothing" Mr Leyonhjelm's lawyer said his client's failure to make a settlement offer was "reasonable"

In November, Federal Court Justice Richard White found Mr Leyonhjelm defamed Senator Hanson-Young over comments he made suggesting she was misandrist and a hypocrite.

Senator Hanson-Young was awarded $120,000 in compensation.

Justice White heard from counsel for both parties about legal costs, interest and a proposed court order that would stop Mr Leyonhjelm from making similar remarks about Senator Hanson-Young.

He awarded Senator Hanson-Young a further $5,000 in interest and reserved his decision about costs and the proposed injunction order.

Leyonhjelm's offer 'insulting'

Kieran Smark SC, for Senator Hanson-Young, told the court that Mr Leyonhjelm's offer was "an offer of nothing".

He described parts of Mr Leyonhjelm's settlement offer as "gratuitous, insulting and offensive".

"In the last sentence, he can be seen to take the opportunity, which was an opportunity to engage in settlement discussions, to insult [the senator]," he said.

"Those two words mean a tip or a gratuity so that seems to be offensive, so in other words, 'I'll give you a tip' as one might give a taxi driver.

"It's quite unusual to find personal attacks on the other side in the course of framing a settlement offer."

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The court previously heard that at the conclusion of a Senate vote in June 2018, Mr Leyonhjelm told Senator Hanson-Young that she should "stop shagging men".

In a media statement, Mr Leyonhjelm claimed he had made the comment in response to an interjection by Senator Hanson-Young along the lines of "all men are rapists".

However, Justice White found Senator Hanson-Young did not speak those words.

Mr Smark told the court that harm to Senator Hanson-Young was exacerbated when Mr Leyonhjelm repeated the comments in media interviews.

"It must have been crystal clear to Mr Leyonhjelm, then senator Leyonhjelm, that the exact words were in contest and they mattered, but nevertheless he continues to engage in the sort of conduct which Your Honour found was aggravated," he said.

"That conduct is indicative of a desire to continue to attack [Senator Hanson-Young]."

Court order to prevent similar remarks opposed

Leon Bertrand, for Mr Leyonhjelm, opposed the court order that would prevent him making similar comments about the senator.

"My client is no longer a practising politician — he's no longer in a high-profile position where he can harm [Senator Hanson-Young's] reputation," he said.

"His position now is more akin to an ordinary member of the public. The impact of his words would not be too substantial."

He said Mr Leyonhjelm's failure to make a settlement offer was "reasonable" and it was on a "walk-away basis".

"My client was entitled to have his day in court and he shouldn't be punished for not going out of his way to make a commercial settlement offer," he said.

In November last year, Mr Leyonhjelm lost a bid to have the defamation case against him thrown out.

He quit the Senate in February.

The final decision on costs will be made at a later date.