Fine Gael is undertaking an internal review into a civil case taken by Dún Laoghaire TD Maria Bailey.
An Taoiseach Leo Varadkar met with Deputy Bailey earlier on Wednesday.
In a statement following the meeting, the party said: "In relation to a civil case which Deputy Bailey is withdrawing from the courts, Fine Gael is undertaking an internal review to establish all facts.
"The review will be undertaken by David Kennedy, Senior Counsel."
Deputy Bailey has agreed to participate fully with the review.
Fine Gael has said it will not be making any further comment.
However a spokesman said Ms Bailey remains chair of the Oireachtas Housing Committee.
Personal injury claim
It relates to a case taken by Ms Bailey against the Dean Hotel in Dublin, which was subsequently withdrawn.
She brought a personal injury claim after she claimed she fell from a swing in the hotel's restaurant in 2015.
She defended her decision to sue the hotel in an interview on Monday.
She said: "Just to be clear: I'm not looking for damages - I was only looking to have my medical expenses recouped.
"And I was never looking for compensation".
She added: "I was hurt, I have medical expenses - nobody questions that here".
She explained: "We saw the swings - nobody was drunk, nobody was messing - they're like polished wood these seats.
"I sat in them, I did have a bottle of beer in my hand and next thing I knew I was on the floor.
"I had my beer in my hand, and then I was reaching for my friend's - had a bottle of wine - she was taking her camera out her jacket."
However following the RTÉ interview, a number of Ms Bailey's colleagues suggested she should have spoken to Mr Varadkar before speaking to the media.
Health Minister Simon Harris suggested: "I think it was an unfortunate interview.
"I think when you withdraw a claim that is in and of itself an acknowledgement of the fact that perhaps that claim shouldn't have proceeded - yet that interview seemed to be very much in the space of blaming lots of other people."
Justice Minister Charlie Flanagan said: "I'm surprised that she spoke so freely about it, but this is a matter entirely for Maria herself.
"And I understand that she has discontinued the civil action that was taken in a private capacity".
But Mr Flanagan said it "was an issue" that was raised during the local election campaign.
While Social Protection Minister Regina Doherty said she wished Ms Bailey had not spoken on the issue.