Fight for control of Victorian Labor resumes as unions appeal case

A lengthy court battle over control of Victorian Labor has returned, with a decision now looming over a Supreme Court appeal.

A lengthy court battle over control of Victorian Labor has returned, with a decision now looming over a Supreme Court appeal.

Lawyers for Health Services Union state secretary Diana Asmar returned to court on Monday to challenge federal Opposition Leader Anthony Albanese over a federal takeover of the party’s national branch.

The national intervention, triggered over allegations of industrial-scale branch stacking, has suspended the voting rights of Labor members and affiliated unions.

But an internal war broke out within the party after the party’s national executive moved to preselect election candidates rather than including the votes of branch members.

Ms Asmar and a group of other unions launched a legal challenge in the Supreme Court claiming that the takeover was illegal, but this was unsuccessful.

The Leader of the Australian Labor Party, Anthony Albanese. Picture: David Crosling

An appeal was launched and was heard on Monday, with Ron Merkel QC arguing the members were entitled to control of the party under rules governing how trusts should be managed.

It was also urged that Victorian Labor was a registered political party and should not be under the control of an outside person or group under its current rules.

But Peter Willis SC, representing the party’s national executive, said the case should be dismissed.

He said that registering a political party under the Electoral Act did not make it a “creature of the statute”.

The court has been dismissed pending a decision on the appeal.

Kororoit MP Marlene Kairouz launched a similar legal action last year but was also defeated and did not decide to continue with an appeal.

It comes amid speculation Ms Kairouz may step away from politics and trigger a difficult by-election for the party before the state election.