An attorney representing Gabor and her ninth husband, Frederic Von Anhalt, voluntarily moved to dismiss the case, according to lawyers for both sides.
Gabor and her husband sued Francesca Hilton in 2005, claiming she forged Gabor's signature to take out a loan on Gabor's $14 million Bel Air home. They claim Hilton stole $2 million from that transaction to buy herself a home and invest in a phantom company in New York.
The lawsuit alleged elder abuse, fraud and intentional infliction of emotional distress.
Gabor's husband has said Hilton took the money because she's worried she won't get enough when her mother dies. Hilton has said Von Anhalt manipulated Gabor to get into his wife's will, and that she refinanced the home with her mother's permission to protect the money.
The trial was set to begin Wednesday, but Gabor, who was recovering from surgery Tuesday to treat infections in her legs, did not appear in court.
One of her attorneys asked to postpone the case because of the 90-year-old actress' medical conditions, but Superior Court Judge Jacqueline Connor rejected the request, said Hilton's attorney, Ronald Richards.
Gabor and Von Anhalt plan to file a revised lawsuit, their lawyer Chris Fields said.
Besides the leg infections, which stem from a 2002 car accident that left Gabor partially paralyzed, she was also reported to have had a stroke in 2005 and underwent emergency surgery to clear a blocked artery.
The native of Hungary has appeared in films such as "Moulin Rouge" in 1952 and "Queen of Outer Space" in 1958. She has also been on TV specials and game shows, and as a guest on several television series, often playing herself.