The Health Services Union's multi-million dollar claim against Kathy Jackson will go ahead despite the HSU's former head declaring bankruptcy.
The former national secretary is being sued by the union for "in excess of" $2.5 million over claims she misappropriated $660,000 of members' funds to spend on personal expenses including shopping and holidays.
Jackson did not appear in the Federal Court on Friday when Justice Richard Tracey ordered the civil trial to proceed on July 7.
The trial had been scheduled to begin on June 29, but Jackson did not appear.
Instead the court heard that she had declared bankruptcy and a trustee had been appointed to manage her affairs.
The trustees were represented in court on Friday but have not yet made any formal application to join proceedings.
Justice Tracey said the trial would have to proceed on Tuesday or be postponed until December.
"It is highly unsatisfactory that it not be dealt with now," he said. "My present view is the matter should proceed."
It is unclear if Jackson intends to appear at the trial.
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