The Victorian Liberals’ Moira Deeming saga is showing no signs of abating, as sitting party MPs rule themselves out for an upcoming byelection run.

Lawyers for Mrs Deeming, who was expelled from the parliamentary party last month, have issued a second defamation concerns notice to Liberal leader John Pesutto.

The 16-page notice contains an itemised list of claims against the opposition leader, including that he publicly accused her of being a Nazi sympathiser and associate, and that he used the allegation to bully and threaten her with expulsion.

“Mr Pesutto’s accusations were false and seriously defamatory of Mrs Deeming personally and professionally and have caused serious harm to her reputation,” reads the notice, obtained by AAP.

“She is entitled to substantial damages as a result.”

Mr Pesutto has denied he accused the now independent MP of being a Nazi or having Nazi sympathies.

Mrs Deeming was originally suspended for nine months in March following her participation in an anti-transgender rally attended by neo-Nazis.

She sent a separate defamation concerns notice to Mr Pesutto before being expelled on May 12 for allegedly bringing discredit to the party.

The latest notice spans Mrs Deeming’s attendance at the Let Women Speak rally, Mr Pesutto’s initial failed motion to expel her, disputed meeting minutes, and a recent statement from the UN’s special rapporteur on violence against women and girls.

It also lays out allegations that a Liberal staffer sat outside Mrs Deeming’s office in the lead-up to the March suspension, in what she considered a “transparent attempt to intimidate her” and other MPs who visited.

To resolve the dispute, Mrs Deeming’s defamation lawyer Patrick George requests Mr Pesutto publish a pre-written apology to her on his website and all social media accounts for 14 days, along with paying her compensation and legal costs.

Mr Pesutto’s office and Mrs Deeming declined to comment, despite the latter appearing in state parliament on Thursday.

Premier Daniel Andrews said the Victorian Liberals were opposed to everything, including each other.

“If you can’t run your party, then you’ve got no place pretending that you could run the state,” he told reporters.

“They’re a nasty little rabble.”

The latest legal threat came after veteran Liberal MP Ryan Smith announced he was resigning, triggering a byelection in Melbourne’s north-east.

The Warrandyte byelection shapes as a potential test of Mr Pesutto’s leadership after internal ruptures between conservative and more moderate members since taking over from Matthew Guy last year.

Sitting upper house MPs Matt Bach and Nick McGowan won’t be throwing up their hand to be preselected for the traditionally safe Liberal seat, held on a 4.2 per cent margin.

“I’m very happy where I am,” Mr Bach said.

Federal Liberal vice-president Caroline Inge, Manningham councillor Michelle Kleinert, KPMG director Sarah Overton, former Box Hill candidate Nicole Werner and Ranjana Srivastava have all been floated as potential candidates.

– AAP