Craig Thomson says he's too sick to fight a legal battle against the workplace relations tribunal and too poor to pay a fine if he loses.
The former MP and disgraced ex-union boss on Monday lost his bid to have a Fair Work Commission case against him thrown out on the grounds he is mentally unwell.
Thomson, representing himself, told the Federal Court in Melbourne he suffered post traumatic stress, and the Fair Work Commission's pursuit of him contributed to his mental illness.
He had suicidal thoughts and did not have the money to pay the compensation and damages being sought.
"If there were to be some fines I'm simply not in a position to be able to pay those," Thomson told the court.
The Fair Work Commission is suing Thomson for alleged misuse of Health Services Union funds while he was the national secretary.
Thomson was last year convicted of 13 counts of theft following cash withdrawals he made from an HSU bank account.
He was acquitted of 49 charges of obtaining financial advantage by deception on the grounds the prosecution had made an error in the way it made its case.
Fair Work Commission general manager Bernadette O'Neill said in February it was in the public interest for Thomson to be held to account.
In an affidavit filed with the Federal Court, Thomson said media harassment and rejection by his Labor colleagues while he was an MP in the Gillard minority government had also exacerbated his mental illness.
"What punishment would possibly be greater than what I've already been through in the past six years," Thomson said.
Judge Christopher Jessup said on Monday much of Thomson's affidavit was inadmissible - including unsubstantiated allegations against the police and the general manager of the Fair Work Commission - and dismissed his application.
Thomson then announced he would have to leave court for the good of his health.
"Without the help of mental health professionals I am not able to proceed," Thomson said.
The civil hearing continued after lunch in Thomson's absence.
Barrister Stephen Donaghue for the Fair Work Commission outlined evidence that would be called to show Thomson had used union funds to pay for sex workers.
He also alleged Thomson falsely used HSU funds to advance his political campaign.
The hearing continues in the Federal Court.
