Attempts at a settlement failed this week, so a trial began Wednesday in a local Oslo court. Hagen refuses to retract his remark, and calls the lawsuit an abuse of the Norwegian court system.
Krekar, however, won't back down on demands that Hagen's remarks be legally declared null and void. Krekar also seeks compensation from Hagen for allegedly sullying his honor.
Hagen and Krekar shook hands in court, but Hagen made it clear he thinks the entire case is outrageous. He claims his remarks were made in a political context and were justified.
Hagen's lawyer claimed that Krekar himself has called US President George Bush a terrorist, arguing that Hagen must have the same right to express himself.
"As a military and religious leader, Krekar must tolerate such things," said lawyer Trond Hatland.
In court testimony Thursday, Krekar claimed "no shots were fired" during the period he led the guerrilla group Ansar al-Islam. He said he'd learned to tolerate such labels as "extremist" and many others, but not "terrorist."
"As a party leader, (Hagen) can give signals to persons who can put me in danger," Krekar said.
He claimed a Norwegian Broadcasting (NRK) program last year that portrayed him as a guerrilla leader in northern Iraq was based on material from "political opponents on the left side of Kurdish politics."
The trial is expected to run through Friday.
