At a December 22 mediation hearing, Cr Stephen Mayne settled with CCSSCI for an undisclosed sum but Cr Ellis has refused to settle. So far, the defamation case has cost ratepayers $10,000, with settlement costs covered by council insurance.

The council did not respond to questions about whether ratepayers would pay more for the case against Cr Ellis.

The defamation action was launched last February as a result of comments made in the media by the two councillors about the expansion of Donvale’s On Luck nursing home in 2010.

Through his lawyers, CCSSCI board member Lionel Leung said he was astonished by Cr Ellis’ refusal to settle.

‘‘His conspiracy theory appeals to xenophobia. His behaviour appears to be nothing short of that of an immature, schoolyard bully,’’ Mr Leung said.

But Cr Ellis said he would stand by his original comments.

‘‘I’m prepared to be resolute in the face of it. I have done nothing more than my duty as a councillor. Not to have done that would have been a failure of my duty as a councillor,’’ Cr Ellis said.

Mr Leung said CCSSCI’s reputation as a charitable organisation had been ‘‘gravely injured’’ as a result of a ‘‘negative campaign waged by Crs Ellis and Mayne against us since early 2010’’.

Mr Leung congratulated Cr Mayne for reaching a settlement.

In a written statement dated December 24, Cr Mayne said: ‘‘I acknowledge that some council officers and the then-mayor were informed of CCSSCI’s intention to expand the On-Luck Nursing Home ... I would like to state on record that the CCSSCI [was] correct in believing the expansion of the On-Luck Nursing Home could not proceed without the approval of the Planning Minister.’’