The Health Services Union is taking a Victorian branch to court after controversial secretary Diana Asmar refused to stand down while she faces corruption allegations.
The union's national leadership is applying in the Federal Court to appoint new leadership to the embattled branch.
Proceedings had been adjourned until Friday afternoon while legal representatives for the applicant and respondents tried to come to an agreement.
The Fair Work Commission previously launched civil Federal Court proceedings against Asmar, alleging she falsely claimed more than $120,000 as relevant business expenses.
It's also claimed she authorised more than $2.7 million to be paid to a printing business that invoiced for products and services that were never received.
Asmar's defence has applied to delay the civil matter, due to the likelihood of potential criminal charges being laid for the same offending.
Her husband David, Health Workers Union president Rhonda Barclay and union officials Kerry Georgiev, Nick Katsis, David Eden and Lee Atkinson have also been listed as respondents in the civil case.
The Health Workers Union represents 18,000 workers across Victoria in public and private hospitals, pathology, disability, aged care services and other industries. It is one of four HSU branches in the state.