Quotation Mark Quandary

Daisy Lee

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If a character is repeating something someone else said, what is the correct way to format the quotation marks?

Example: Dave spoke up. "The last thing she ever said to me was, "You suck!""

Is that correct? Quote Dave. And also quote 'she' within Dave's quote?
 
I think it largely depends on where you are - in the UK we tend to use single quotes for speech, in the US it seems to be more doubles, but as @Naomasa298 says, I would differentiate it, so either

"The last thing she ever said to me was, 'You suck!'"

or

'The last thing she ever said to me was, "You suck!"'
 
Depending on your audience and market, it's worth checking out one of the commonly accepted style guides for your area.
 
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