Kesha has had her counterclaim against Dr Luke rejected by the Appeal's Court, meaning he is still pursuing legal action for defamation.
The 31-year-old singer has been locked in a bitter court battle with the producer since she alleged that he sexually abused her after she signed to his former label, Kemosabe Records.
Dr Luke is currently suing Kesha for deformation, and in March last year, a New York Supreme Court judge ruled that amendments she had made to her counterclaims would not be accepted, claiming that Kesha did not provide Luke with adequate notice of contract breaches.
And now, after taking the case to an Appeals Court in New York, the singer has been told once again her counterclaims have been rejected.
In her proposed countersuit, Kesha said: "You can get a divorce from an abusive spouse. You can dissolve a partnership if the relationship becomes irreconcilable. The same opportunity - to be liberated from the physical, emotional, and financial bondage of a destructive relationship - should be available to a recording artist."
New York's First Department stated in a decision read out on Tuesday that Kesha's proposal to end her contract with Dr Luke was "devoid of merit".
It read: "Kesha's proposed amendments are palpably insufficient and devoid of merit. Her counterclaim seeking declaratory relief terminating the agreements on the ground of impossibility and impracticability of performance was speculative, contradicted by her own allegations that she had continued performing under the agreements and, as to at least one of the agreements, the impossibility was not produced by an unanticipated event that could not have been foreseen or guarded against."
Kesha also wanted the New York court to apply California's seven-year rule limiting personal service contracts, but that request was also denied.
The decision continues: "The court also properly denied Kesha leave to assert a counterclaim for declaratory relief terminating the agreements on the ground that they violate California Labor Code 2855, as the unambiguous New York choice-of-law provisions contained in the agreements preclude the application of that California statute."
For Kesha, it now means that as the case moves forward, only Dr Luke's defamation claim will be considered.