The Health Services Union will have to wait until Friday to continue its push to sue former boss Kathy Jackson for more than $2.5 million despite her declaration of bankruptcy.
Ms Jackson is accused by the HSU of acting outside her authority while national secretary by spending $660,000 of members' funds on personal expenses such as holidays and shopping.
She was due to front the Federal Court on Monday for a two-week hearing but did not show up.
Instead, the court heard she had declared bankruptcy.
The union is suing Ms Jackson for more than $2.5 million, including costs, and wants her assets frozen to prevent their sale or transfer.
Following the bankruptcy bombshell, the matter was stood down while the union decided what it wanted to do.
By the afternoon, HSU barrister Mark Irving said the union would seek leave to proceed with the lawsuit.
Justice Richard Tracey extended an order on Monday preventing the transfer of a coastal NSW property, which was bought for $1.3 million in 2011.
The union alleged Ms Jackson was trying to transfer the property to her partner, Fair Work Commission vice-president Michael Lawler, to thwart the lawsuit.
In documents tendered to the court last week, Ms Jackson denied moving her assets out of union reach and challenged the HSU to produce evidence supporting its "false claim" against her.
Ms Jackson said she discussed selling the property to Mr Lawler last year, to pay her mounting legal fees, and the pair were advised it was lawful.
"It is a matter of complete coincidence that the transaction is being completed at this time and in no way reflects a perception by me that I am likely to be found liable," Ms Jackson said in the statement.
Mr Lawler did not appear in court on Monday but was represented by barrister James Johnson, who delivered the news of Ms Jackson's bankruptcy.
A trustee appointed to deal with Ms Jackson's affairs also sought an adjournment of the civil hearing to seek legal advice.
Justice Tracey adjourned the matter until Friday.
Share
