Espina filed the suit in December last year with the Quezon City Regional Trial Court after Medel accused him of masterminding the abduction of a suspect on the murder of the veteran actress.
Espina said Medels accusations were "pure lies" that could ruin his reputation as a police officer.
Medel entered a "not guilty" plea before the sala of Branch 220 Judge Jose Paneda. He earlier claimed that Espina was part of a police team that snatched Michael Martinez.
Medel claimed Martinez knew things that could lead to the resolution of the case.
Medel even claimed that he saw Espina with Martinez at the office of the Criminal Investigation and Detection Group (CIDG) the day Martinez was reportedly abducted. He said he also saw Espina hit Martinez to make him admit his participation in Blancas murder.
Until now, Martinezs whereabouts are still not known. His family has filed a petition for the privilege of the writ of habeas corpus with the Quezon City Regional Trial Court to force the Philippine National Police (PNP) to present him in court.
However, PNP officials denied they have Martinez in their custody.
Medel claims he and Martinez were innocent.
Breaking down at the start of the investigation, the suspect said he was "abducted and tortured" by the police to confess to the killing of Blanca and implicate the actress husband, Rod Lauren Strunk, as the mastermind.