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Former Health Services Union boss Kathy Jackson declares bankruptcy Former Health Services Union boss Kathy Jackson declares bankruptcy
(about 2 hours later)
Former Health Services Union boss Kathy Jackson has declared bankruptcy and has not appeared for the first day of a hearing into a civil claim against her, the federal court has been told. A civil claim against the former Health Services Union boss Kathy Jackson hangs in the balance after she declared bankruptcy and failed to turn up in court.
The union is suing Jackson for $1.36m, alleging she acted outside her authority as national secretary and spent $660,000 of members’ funds on personal expenses.
Related: Kathy Jackson loses attempt to stop HSU civil case against herRelated: Kathy Jackson loses attempt to stop HSU civil case against her
Jackson was due to appear in the federal court on Monday for the start of a civil case brought against her by the union for allegedly acting outside her authority as national secretary and spending $660,000 in funds on personal expenses, including holidays and shopping. A two-week hearing was due to begin in the federal court on Monday.
The HSU had also been seeking to freeze Jackson’s assets. But barrister James Johnson, acting for Jackson’s partner – the Fair Work Commission vice-president Michael Lawler – and her former lawyer Philip Beazley, said events occurred over the weekend “involving the bankruptcy of Ms Jackson”.
Barrister James Johnson, acting for Jackson’s former lawyer and her partner Michael Lawler, told the court on Monday that “events had occurred over the weekend involving the bankruptcy of Ms Jackson”. Johnson said a trustee, Paul Leroy of the accounting group Hall Chadwick, had been appointed.
“She is, as of today ... bankrupt,” Johnson said. Jackson had no available assets, he said, and the court was told Jackson had engaged a trustee. The court heard Jackson might be able to borrow money, despite having no available assets.
Justice Richard Tracey asked whether Jackson had appeared in the Sydney court, which was linked to Melbourne via video for the hearing, but a court official reported that she hadn’t. “There is always someone who is prepared to lend,” Johnson said.
Barrister for HSU, Mark Irving, said he would need to consult with the union about its position on the hearing going forward. Justice Richard Tracey asked whether Jackson had appeared in the Sydney federal court, which was linked to the Melbourne hearing via video. A court official reported that she had not.
In a hearing last week, the court was told Jackson didn’t have any assets left and was running out of money to pay her legal fees. The HSU barrister Mark Irving said he would need to consult the union about their position and the matter was adjourned to 2.15pm.
Lawler said moves to seize her assets would hurt him because he’s paying most of her bills. Last week the court heard Jackson was running out of money to pay her legal fees.
The union’s lawyers had argued for her assets to be frozen because they alleged Jackson was attempting to transfer her property to her partner to thwart the union’s lawsuit. Lawler, who also failed to attend court on Monday, has said HSU moves to seize her assets would hurt him because he is paying most of her bills.
The union’s lawyers had argued for her assets to be frozen because they alleged Jackson was attempting to transfer her property to her partner to thwart the lawsuit.
On Monday the Australian reported that Jackson had also just lost a backdated workers’ compensation claim worth hundreds of thousands of dollars.
She lodged the claim in 2014 over an alleged mental stress injury sustained three years ago, the report said.