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Chelsea Handler wages a full-on war against Heather McDonald (VIDEO)

A celebrity gossip junky, Caroline Goddard has been writing entertainment news for longer than the world has known Kim Kardashian's name. Follow her on Twitter at @GoddardCaroline.

Chelsea Handler reveals she had good reason for cutting Heather McDonald out of her life

Comedian Heather McDonald tried to make Chelsea Handler look like a terrible boss and friend, but Handler has revealed the real reason behind their feud.

The problems started when McDonald told the podcast Allegedly with Theo Von & Matthew Cole Weiss that she "lived in fear" of Handler when she worked as a writer on Chelsea Lately through its seven-year run, and elaborated on multiple perceived slights.

"It was hard. Never being promoted… If a new writer came on, they got the same thing as I did. That part bugged me," McDonald said, adding that their personal relationship ended when Handler did not renew her contract with E!

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"She didn't know how to get out of it, which is why she went on Howard Stern and ended it early for us, which screwed us," McDonald claimed. "We had WGA contracts that were not honored. Everyone else walked away with a severance, and I walked away with nothing… I don't agree with how she treats relationships in her life. I think she's missing out and I think she's missing out by dumping people. I think it's a shame. You don't have to cut someone out completely."

But today, Handler fired back at McDonald, saying she had very good reason for ending both their personal and professional relationships.

"She [McDonald] exchanged stories to Us Weekly in exchange for them running her photo, when she was working on my show. That's why I stopped talking to her," she explained during an appearance on Jenny McCarthy's XM Radio show Dirty Sexy Funny.

"I could have fired her, but instead, I just stopped spending any personal time with her."

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She later elaborated on the feud to Howard Stern. "Why the f*** would I talk to her about what I was doing? She's a writer on my show. She's not my partner, especially if you have a relationship with a magazine where you're gonna leak it. You don't trust people after that.

"I just thought it was a betrayal… I wouldn't hang out with her. She's somebody who would love to hear about Jennifer Aniston's house on the weekend. I could never, ever share my personal life with her again."

More: Chelsea Handler branded "not funny" anymore over new underwear joke

Your shot, McDonald.

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