Kathy Jackson bankrupt, HSU due to pursue legal case
Kathy Jackson is approached by the media after leaving the hearing. (AAP) AAP
The trial over a $2.5 million claim against Kathy Jackson should proceed despite her bankruptcy, the Health Services Union is expected to argue.
Former HSU boss Ms Jackson is accused by the union of acting outside her authority while national secretary by spending $660,000 of members' funds on personal expenses such as holidays and shopping.
The union is suing her for "in excess of" $2.5 million, including costs in the Federal Court in Melbourne.
A hearing was due to begin on Monday, but Ms Jackson did not appear.
Instead, the court heard she had declared bankruptcy and a trustee had been appointed to handle her affairs.
The matter is due back before the court on Friday.
Barrister for the union, Mark Irving, on Monday foreshadowed that he would make an application for the case against Ms Jackson to proceed.
The court heard the trustee also wanted some time to seek independent legal advice.
Justice Richard Tracey is expected to consider the case from 9.30am on Friday.
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