I suspect the key part is Sharaz's statement that Reynolds has rejected his attempts at mediation. By not contesting Sharaz is indicating it was his desire to settle, but Reynolds has chosen to proceed to court. Sharaz's aim is to accept a loss on the defamation which may not be a huge financial sum, but have costs awarded against Reynolds based on her refusal to settle before this reaches court, so that whatever she receives (if anything) by way of an award for defamation is dwarfed by the legal costs she incurs in doing so.
