Legal Question in Personal Injury in Indiana

I am being sued for defamation of character. I had spoke with a woman on the phone and she twisted my words around and lied to a 3rd party about what I had said. The woman on the phone has filed numerous compaints and lawsuits agianst many other individuals and seems to be using "the system" as her occupation. Since it is going to come down to my word against hers, I feel that it is imperative that the jury be made aware of all her false complaints. Will I be able to bring all this up in court? It is actually the 3rd party that is suing me. Her case is based soley on what the other woman told her I supposedly said. Wouldn't that be hearsay? I cannot fathom how someone can sue someone else because of he said, she said.

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